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Title: Zero-sum arguments Post by: CliffordM on November 17, 2013, 10:52:27 PM A lot of smart people are worried about Bitcoin's increasing importance and value. They worry that all bitcoin is doing is simply taking money from elsewhere in a speculative frenzy, chasing what is an irrational bubble.
In particular they use the classic zero-sum argument that says that for whoever makes $1 from bitcoin, someone else has lost $1. Well, in pure accounting terms this is true. But if Bitcoin represents a beneficial new paradigm in global finance ( and the world certainly needs one!) , then Bitcoin can be adding economic value to the world. How does this work ? Just like any company that builds a better mouse-trap. People rush to use the new product as it uses less resources than before. The surplus economic resources represent true global profit. Title: Re: Zero-sum arguments Post by: MaxBTC1 on November 17, 2013, 10:55:45 PM Quote n particular they use the classic zero-sum argument that says that for whoever makes $1 from bitcoin, someone else has lost $1. That makes absolutely no sense. Title: Re: Zero-sum arguments Post by: DeathAndTaxes on November 17, 2013, 10:59:26 PM In particular they use the classic zero-sum argument that says that for whoever makes $1 from bitcoin, someone else has lost $1. Anyone who says that isn't worth listening to. That dynamic is only true if Bitcoin goes to $0, fails completely and is never revived/rebooted. Title: Re: Zero-sum arguments Post by: Pente on November 18, 2013, 12:41:10 AM Bitcoin creates more savings which creates more wealth. Fiat coin creates more debt which destroys wealth.
Title: Re: Zero-sum arguments Post by: Kazimir on November 18, 2013, 01:02:49 AM In particular they use the classic zero-sum argument that says that for whoever makes $1 from bitcoin, someone else has lost $1. In this case, the one who loses $1 is the bank. By not being able to make profit from controlling bitcoins like they do with dollars. |