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polidori redux
polidori redux
1 year ago

“We knew little about Bitcoin’s creators, other than that they were angry at how the 2008 crash had been managed and wanted to create an alternative form of money to liberate people from banks.”
No John, they just wanted to get rich quick. A degree in criminal psychology provides a better insight into the ways of the world than a degree in economics.

Last edited 1 year ago by polidori redux
Seb Dakin
Seb Dakin
1 year ago
Reply to  polidori redux

This may or may not be the case, but I remember when I first came across mention of bitcoin, back in something called the Daily Reckoning in 2010 or so, it was specifically being promoted as an antidote to fiat-money and corrupt central banking, so there may be more ideology and indeed anger behind its creation than you give it credit for.

polidori redux
polidori redux
1 year ago
Reply to  Seb Dakin

Whenever “ideology” is mentioned. I always respond with “follow the money – who’s made it?” Ideology is, almost invariably, a cover for greed.

polidori redux
polidori redux
1 year ago
Reply to  Seb Dakin

Whenever “ideology” is mentioned. I always respond with “follow the money – who’s made it?” Ideology is, almost invariably, a cover for greed.

Bernard Hill
Bernard Hill
1 year ago
Reply to  polidori redux

…boy, you are really are self- immolating over Bitcoin Poli D. I suspect a lot of the negative sentiment on Unherd whenever cryptocurrency comes up, is from people who’ve worked in the City, and are invested in the status quo, or otherwise as conservatives, are naturally resistant to something which is radical capitalism.

Bernard Hill
Bernard Hill
1 year ago
Reply to  Bernard Hill

…and by the way, the people who created it are polymaths, not City midwits.

Peter B
Peter B
1 year ago
Reply to  Bernard Hill

But do we really know who the creators of Bitcoin were ? This seems far from certain. And if we do not, how can we know their real aims ?
Let’s give them the benefit of the doubt and assign them decent and honourable motives. But poli is still correct that subsequent waves of crypto “enterpreneurs” were – many still are active – criminals and shysters. There’s no getting away from the sheer madness and scale of fraud of the crypto exchanges.
One of the reasons that happens is that this is yet another so-called disruptive technology where one of the main “advantages” is that some new business model bypasses the regulators. Uber claimed not to be a taxi service. Crypto exchange get rich quick schemes claim not to be securities (investments). Tech companies claim that their IP (intellectual property) is worth huge amounts and claim it is “owned” in countries like Ireland which played almost no role in creating that IP.
Then there’s the massive energy waste involved in Bitcoin mining. Possibly reduced now for Ethereum. But not – I understand – for Bitcoin.
Back to the main poin about inflation. This economist (author) appears to be blaming inflation on companies making excess profits. Rather than central banks printing vast amounts of money. Doh !

Robbie K
Robbie K
1 year ago
Reply to  Peter B

And if we do not, how can we know their real aims ?

Bitcoin was created to be untrackable trading tokens for buying drugs on The Silk Road (dark web). It took a very long time before people realised it could be used as an asset in itself.

Bernard Hill
Bernard Hill
1 year ago
Reply to  Peter B

…exactly Peter, the CB’s created the paper which lead to ridiculously easy paper wealth for financial insiders. For an interesting analysis, see: https://www.lynalden.com/open-networks/

Simon S
Simon S
1 year ago
Reply to  Peter B

Then there’s the massive energy waste involved in Bitcoin mining.
Untrue – it uses less than computer video gaming, and even the WEF recently posted a YouTube video on Bitcoin miner Crusoe, expounding how it uses energy that otherwise would go wasted.

Robbie K
Robbie K
1 year ago
Reply to  Peter B

And if we do not, how can we know their real aims ?

Bitcoin was created to be untrackable trading tokens for buying drugs on The Silk Road (dark web). It took a very long time before people realised it could be used as an asset in itself.

Bernard Hill
Bernard Hill
1 year ago
Reply to  Peter B

…exactly Peter, the CB’s created the paper which lead to ridiculously easy paper wealth for financial insiders. For an interesting analysis, see: https://www.lynalden.com/open-networks/

Simon S
Simon S
1 year ago
Reply to  Peter B

Then there’s the massive energy waste involved in Bitcoin mining.
Untrue – it uses less than computer video gaming, and even the WEF recently posted a YouTube video on Bitcoin miner Crusoe, expounding how it uses energy that otherwise would go wasted.

polidori redux
polidori redux
1 year ago
Reply to  Bernard Hill

Last edited 1 year ago by polidori redux
Peter B
Peter B
1 year ago
Reply to  Bernard Hill

But do we really know who the creators of Bitcoin were ? This seems far from certain. And if we do not, how can we know their real aims ?
Let’s give them the benefit of the doubt and assign them decent and honourable motives. But poli is still correct that subsequent waves of crypto “enterpreneurs” were – many still are active – criminals and shysters. There’s no getting away from the sheer madness and scale of fraud of the crypto exchanges.
One of the reasons that happens is that this is yet another so-called disruptive technology where one of the main “advantages” is that some new business model bypasses the regulators. Uber claimed not to be a taxi service. Crypto exchange get rich quick schemes claim not to be securities (investments). Tech companies claim that their IP (intellectual property) is worth huge amounts and claim it is “owned” in countries like Ireland which played almost no role in creating that IP.
Then there’s the massive energy waste involved in Bitcoin mining. Possibly reduced now for Ethereum. But not – I understand – for Bitcoin.
Back to the main poin about inflation. This economist (author) appears to be blaming inflation on companies making excess profits. Rather than central banks printing vast amounts of money. Doh !

polidori redux
polidori redux
1 year ago
Reply to  Bernard Hill

Last edited 1 year ago by polidori redux
polidori redux
polidori redux
1 year ago
Reply to  Bernard Hill

“…boy, you are really are self- immolating over Bitcoin Poli D.”
But unlike you, I have a sense of humour. Dissing your sacred cow! – Oh dear.

Peter B
Peter B
1 year ago
Reply to  polidori redux

You’re correct. It shows some of the characteristics of a cult – non-believers being instantly shouted down for example.
That’s not to say there isn’t some value and useful innovation in Blockchain. I don’t think that’s in doubt.

Bernard Hill
Bernard Hill
1 year ago
Reply to  Peter B

…well if this thread is anything to go by, which it is, at least on Unherd, it is the ‘believers’ getting shouted at!

Last edited 1 year ago by Bernard Hill
Bernard Hill
Bernard Hill
1 year ago
Reply to  Peter B

…well if this thread is anything to go by, which it is, at least on Unherd, it is the ‘believers’ getting shouted at!

Last edited 1 year ago by Bernard Hill
Bernard Hill
Bernard Hill
1 year ago
Reply to  polidori redux

…my point was you’re dissing yourself Poli ! For an incidental analysis of where crypto sits in the current scheme of things, see: https://www.lynalden.com/open-networks/ as well as: https://www.lynalden.com/april-2023-newsletter/

Peter B
Peter B
1 year ago
Reply to  polidori redux

You’re correct. It shows some of the characteristics of a cult – non-believers being instantly shouted down for example.
That’s not to say there isn’t some value and useful innovation in Blockchain. I don’t think that’s in doubt.

Bernard Hill
Bernard Hill
1 year ago
Reply to  polidori redux

…my point was you’re dissing yourself Poli ! For an incidental analysis of where crypto sits in the current scheme of things, see: https://www.lynalden.com/open-networks/ as well as: https://www.lynalden.com/april-2023-newsletter/

Bernard Hill
Bernard Hill
1 year ago
Reply to  Bernard Hill

…and by the way, the people who created it are polymaths, not City midwits.

polidori redux
polidori redux
1 year ago
Reply to  Bernard Hill

“…boy, you are really are self- immolating over Bitcoin Poli D.”
But unlike you, I have a sense of humour. Dissing your sacred cow! – Oh dear.

R Wright
R Wright
1 year ago
Reply to  polidori redux

Your post undersells massively how much the early adopters of all of this did so for ideological reasons. Libertarianism had a brief renaissance around that time in the tech sphere.

mfx v
mfx v
1 year ago
Reply to  polidori redux

Pompous, erroneous twaddle. If you’re going to comment on a topic at least ensure you’ve done a tiny bit of investigation into the topic before you sound off like an ignorant farmyard animal.
Here’s a useful library: https://nakamotoinstitute.org/literature/

Seb Dakin
Seb Dakin
1 year ago
Reply to  polidori redux

This may or may not be the case, but I remember when I first came across mention of bitcoin, back in something called the Daily Reckoning in 2010 or so, it was specifically being promoted as an antidote to fiat-money and corrupt central banking, so there may be more ideology and indeed anger behind its creation than you give it credit for.

Bernard Hill
Bernard Hill
1 year ago
Reply to  polidori redux

…boy, you are really are self- immolating over Bitcoin Poli D. I suspect a lot of the negative sentiment on Unherd whenever cryptocurrency comes up, is from people who’ve worked in the City, and are invested in the status quo, or otherwise as conservatives, are naturally resistant to something which is radical capitalism.

R Wright
R Wright
1 year ago
Reply to  polidori redux

Your post undersells massively how much the early adopters of all of this did so for ideological reasons. Libertarianism had a brief renaissance around that time in the tech sphere.

mfx v
mfx v
1 year ago
Reply to  polidori redux

Pompous, erroneous twaddle. If you’re going to comment on a topic at least ensure you’ve done a tiny bit of investigation into the topic before you sound off like an ignorant farmyard animal.
Here’s a useful library: https://nakamotoinstitute.org/literature/

polidori redux
polidori redux
1 year ago

“We knew little about Bitcoin’s creators, other than that they were angry at how the 2008 crash had been managed and wanted to create an alternative form of money to liberate people from banks.”
No John, they just wanted to get rich quick. A degree in criminal psychology provides a better insight into the ways of the world than a degree in economics.

Last edited 1 year ago by polidori redux
Saul D
Saul D
1 year ago

Prior to 2008 the financial system had created an excess of debt that had become unsustainable and threatened to collapse the entire system. QE had the effect of a sponge, absorbing the debts with new money, leading to a surplus of money in the system which then drove up asset prices. This was then extra-inflated by the Covid payouts to cover a lack of economic output leading to too much money in the system for the level of economic production. Inflation was always going to follow, but it was made worse because of Russia-Ukraine and the squeeze on energy.
The value of money depends on what it allows you to buy. With prices rising visibly (ie from one month to the next) everyone is left chasing more money just to stay still and speculative assets like bitcoin stamp-collecting benefit from the panic of chasing income benefiting charlatans like FTX.
However, what’s really scary is how fragile the financial system is to movements in interest rates – from the pensions funds who would have been caught cold over Truss’s tax-cuts, to the collapse of SVB and Credit Suisse, with more banks at risk.
If the government can’t curtail inflation by tightening the money supply and raising interest rates it may well get worse as the spiral of wage claims redoubles the effect on prices. Unfortunately, this is coming at a time of low trust in political institutions, and with politicians adding regulatory costs and chasing policies like net-zero that in themselves would increase prices even in normal times. Now is the time to lighten the balloon by cutting costs and throwing out anything that restricts economic output. In the long run inflation is beaten by efficiency and surplus, not restriction. Simplify, streamline and ‘stick to the knitting’.

Saul D
Saul D
1 year ago

Prior to 2008 the financial system had created an excess of debt that had become unsustainable and threatened to collapse the entire system. QE had the effect of a sponge, absorbing the debts with new money, leading to a surplus of money in the system which then drove up asset prices. This was then extra-inflated by the Covid payouts to cover a lack of economic output leading to too much money in the system for the level of economic production. Inflation was always going to follow, but it was made worse because of Russia-Ukraine and the squeeze on energy.
The value of money depends on what it allows you to buy. With prices rising visibly (ie from one month to the next) everyone is left chasing more money just to stay still and speculative assets like bitcoin stamp-collecting benefit from the panic of chasing income benefiting charlatans like FTX.
However, what’s really scary is how fragile the financial system is to movements in interest rates – from the pensions funds who would have been caught cold over Truss’s tax-cuts, to the collapse of SVB and Credit Suisse, with more banks at risk.
If the government can’t curtail inflation by tightening the money supply and raising interest rates it may well get worse as the spiral of wage claims redoubles the effect on prices. Unfortunately, this is coming at a time of low trust in political institutions, and with politicians adding regulatory costs and chasing policies like net-zero that in themselves would increase prices even in normal times. Now is the time to lighten the balloon by cutting costs and throwing out anything that restricts economic output. In the long run inflation is beaten by efficiency and surplus, not restriction. Simplify, streamline and ‘stick to the knitting’.

Christopher Barclay
Christopher Barclay
1 year ago

Cash will be abolished, every transaction will be passed onto GCHQ and bank rescues will consist of electronically managed haircuts to the amount of money in the ‘wallet’ on your mobile phone. Will people still use banknotes and coins (illegally) in a parallel economy? Will local communities set up barter systems?

Christopher Barclay
Christopher Barclay
1 year ago

Cash will be abolished, every transaction will be passed onto GCHQ and bank rescues will consist of electronically managed haircuts to the amount of money in the ‘wallet’ on your mobile phone. Will people still use banknotes and coins (illegally) in a parallel economy? Will local communities set up barter systems?

Charles Stanhope
Charles Stanhope
1 year ago

“Beware the Greeks bearing gifts”.*

(As Laocoön is supposed to have said.)

Charles Stanhope
Charles Stanhope
1 year ago

“Beware the Greeks bearing gifts”.*

(As Laocoön is supposed to have said.)

Robbie K
Robbie K
1 year ago

To know which way the wind is blowing, watch Bitcoin, the imagined currency that has become real, and is our most useful measure of faith in global finance.

Some kind of sick joke. Bitcoin and the whole crypto market is like the wild west. There’s no rules, trust or obligation. It’s a tower built on ‘greater fool theory.’ I’d sooner measure faith in global finance at the local casino.

Robbie K
Robbie K
1 year ago

To know which way the wind is blowing, watch Bitcoin, the imagined currency that has become real, and is our most useful measure of faith in global finance.

Some kind of sick joke. Bitcoin and the whole crypto market is like the wild west. There’s no rules, trust or obligation. It’s a tower built on ‘greater fool theory.’ I’d sooner measure faith in global finance at the local casino.

Nicky Samengo-Turner
Nicky Samengo-Turner
1 year ago

Errr… no it does not.

Nicky Samengo-Turner
Nicky Samengo-Turner
1 year ago

Errr… no it does not.

Alan B
Alan B
1 year ago

Keynesians v goldbugs: The same ol’ metaphysical two-party system persists!