As I see it inflation is a tax on the productive while deflation is a reward to producers that then save - that saves natural resources.
Deflation can't be a tax on investors because they can simply hold their money or invest in something better.
Well, unfortunately it is, for the reasons I explained. If an investor makes a mistake in an deflationary economy and makes 2% instead of the target 3%, he is still 2% richer in real terms. Why not see deflation as a buffer?
Because it's not. As soon as your money value is no longer in the currency, the deflation does not protect you from loss. |
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Do you really think it's optimal that we have below average investments when the money could simply be lent to the above average investors at an interest rate somewhere between their respective returns?
Sorry, I thought it was common knowledge. The problem with this is, it's not possible for everybody to do better than average. Also, the alternative is not to lend money to others, but to just keep them in the safe or whatever. |
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It's self-correcting:
You are still ignoring the fact that at any point in time, anyone who can't beat the average would be better off not investing. Your cycle would only work if nobody else was smart enough to predict point 5 after point 4, but really, it's not hard at all. Thus, those not expecting to beat the average that occurs at point 5 would not invest at point 4, but just wait and benefit from the deflation other people's investments would cause. This makes deflation a tax which the people who invest have to pay to those who don't invest, in just the same way as inflation is a tax on those who have money to those who loan money. |
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More generally, what does a 10% deflation rate tell us assuming a constant money supply? I'm perhaps oversimplifying, but basically it tells us that the economy is growing at around 11.11% a year (with 10% deflation, the purchasing power of every BTC increases 11.11% each year). So you now have the same amount of money chasing more goods. If the economy is growing that rapidly, that tells you that there must be lots of investment opportunities with a return of at least 11.11%. Basically, that's the number to beat. If you're looking at an investment opportunity with a measly 5% return, deflation is telling you not to waste your time because there are higher and better uses of that capital.
Can you really not see the problem in an economy where, if you can't invest in a way that beats the average productivity, you are better off not investing (and thus not producing anything) at all? |
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You say that an economy based on a deflating currency necessarily rejects some investments, and is thus less productive. An economy that is neither inflating nor deflating is also rejecting some investments, those with a negative nominal return that would be possible under inflation. And an inflating economy is smaller than one that is inflating a lot. And so on. Clearly, we need an infinite rate of inflation to allow the maximum possible range of economic activities.
Hyperinflation causes a lot of problems which are basically not there with a low inflation of 2-3%. With hyperinflation you are losing value extremely fast, so buying basically anything is better than holding on to them. With normal inflation the maximum loss you can get by spending more time on decisions is much lower, and you can usually get interest by putting the money in a bank. This reduces the loss or even gives a small profit. This doesn't work in hyperinflation, because the uncertainty and loss of confidence in the currency it creates means the banks can't get a good enough interest rate on their loans. |
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Det mest anonyme i den forstand at ingen trenger å vite navnet ditt er er nok å møtes gjennom localbitcoins.com og betale kontant. Hvis du bare vil være anonym for motparten men ikke mellomledd kan du bruke en av Bitcoin-børsene.
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Read what myrkul is writing. He's talking about how absurd it would be to pay the rent for OTHER tenants.
Which is what I replied to. It's the country that *really* owns the land, and if you think the rules it has are absurd your only real alternative is to try to find a country that gives you a better deal. I'm not even going to bother with the "but I should to be allowed to take parts of other peoples land if they are not currently using it for something I think is useful enough"-argument internet libertarians always comes up with at this point. That's no better than the hippies. |
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No, more like the renter who'd like to stop paying for the other tenants...across the city.
Sure you would, but that decision is entirely up to the landowner. Your options are to pay up or leave. |
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Slavery is when you can't leave and you never agreed to stay. You are free to leave the US or wherever you are whenever you want. Your position is like the hippies who demand to be allowed to live in someone else's house without paying. |
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Where are all the UK miners?!
They can probably get a better offer than -5%. |
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Mentioned in the a blog from the the Norwegian government owned public broadcasting company, covering the more expermental parts of internet and broadcasting technology. The article is about different ways to pay for things on the Internet. The Bitcoin related text is positive but very short and basically meaningless. It links to the Wikipedia article and a New Yorker article about a hunt for Satoshi. http://nrkbeta.no/2012/09/11/sokkrik-i-en-fei-4-dagens-betalingslosninger/ |
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(And to everyone who dared to say that people were "stupid" and "ruining bitcoin" by investing into Pirate, you may now eat your socks for complaining about losing this bet)
I didn't fall for your scam either, so I guess it's ok for me to say that it is probably be the dumbest I have seen. All you archived was to completely destroy your, until now, very good reputation. |
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This post is a must-read and have to go in the hall of fame of great post.
It's also basically what some of us have been saying for quite some time now: Real businesses can't promise a permanent interest rate that is this good. I guess it just had to be said by someone you hadn't already decided is stupid. Oh well, as long as you finally get a clue it's all good. |
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Lenders now leaving the market may indicate they operated a ponzi (and just happened to be returning deposits in all cases of people involved with the lending cartel), but, more likely, I'd imagine it indicates they're deeply annoyed by a small handful of people waltzing around with a shit-brush and smearing it on their faces every day, do not enjoy working capital starvation through the exodus of depositors, and of course, have a lot of bad loans popping up because lendees were quietly using funds to put into a Pirate account. So, you are basically blaming Micon for the problems you get from bad loans. I guess the irony is now perfect, because this is exactly one of the issues your customers have been warned can give you problems returning their money even if it's not a ponzi. It seems to me they should be glad they pulled out their money before the losses got bigger than you could handle. |
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Matthew are you claiming to have 42K BTC?
The scam tag won't hurt more if he doesn't pay 42k than if he doesn't pay 10k, so he can just as well accepting more bets. |
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Tell tale sign of passive-aggressive loser/bully Micon...
You should stop now. Your desperate attempts at name calling just makes you look sad and certainly doesn't help the person you claim to be the wife of. |
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biggest reason for it being Pirate booty is that nothing else - I mean nothing else in the entire BTC universe makes sense to have 5% of bitcoins in 1 wallet, built starting early this year until BCST busto. Nothing else it could be.
MtGox moved about 424242 coins at the same time after the hack to prove they were still in control of them, and they probably have more now. ArtFortz mined a huge amount of the coins in the beginning so if he hasn't sold as many as he said he may have twice that amount. Some unknown rich guy may even just have bought that amount speculating that the price will rise. |
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Many offices/households share an IP and quite a few even share a particular machine for browsing.
I can see this being a major pain when I get colleagues/families more interested in this thing.
I even know of entire companies that share one IP for several thousand employees. At the same time it's pretty easy to avoid using that IP if you want to, so this security feature will probably only stop the people that are doing nothing wrong. |
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Now what motive would Patrick Have to make credit ratings for other lenders? The one where you say he has to control to give himself a good (or best) rating is a valid point. But the rest doesn't really make sense to me. By giving other lenders a decent rating he's effectively helping his "competition" (assuming they are all scams) by giving gamblers confidence to deposit in other services to help mitigate risk of default. SO he hurts his own scheme. He wouldn't be considered very credible if he gave everybody but himself a poor rating. By making the others look fairly safe he can make himself look like the gold standard of Bitcoin investments. That's a much better approach than saying that all the others are probably scams, but even though my business appears exactly the same it's completely safe. |
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Please stop trying to save everyone; let them make their own choices. There's more than enough dissenting opinion across the forum for people to make an informed choice.
Considering how many people there are who falls for scams that seems unlikely, and there certainly wouldn't be if he followed your advice. When it comes to Patrick I can't quite decide if he's just ridiculously naive or a scammer. Having a ratings scheme which basically is there make more people give him money and where he gives himself top score for completely inverifiable information makes me lean towards a scam. It just seems strange that this many people want a loan that is 10 - 20 times more expensive than a credit card loan. On the other hand the supply of stupid Bitcoin users seems endless, so who knows? |
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