let's develop cryptocurrency economic theory

[Erdogan]

In times of distress it is smart to hold on to the real economic theories, those that logically works.

At the dotcom bubble, lots of people were ready to invent new ones, like: A business doesn't need to have a profit, in fact it doesn't even have to sell anything, stock rises anyway. It is impossible to compute a multiple because of the zero, value is infinite! It's magic, it has to be the Internet, the rules of economy have changed!

One disclaimer there is you should not try to straitjacket all the rules of the traditional economy to the bitcoin economy.
There are still a lot of people who claim that Bitcoin will fail because it does not have any 'intrinsic value'.

Yes, most people do not inform themselves, they just follow the stream of people peddling defunct rules.

[virtfund]

Well in bitcoin you don't have banks, fiscal policy, GDP, debt (there is?), taxes, so at least over here in bitcoin things are easier to understand apart from the supply and demand factor, mining, investment. So it works kind of different as generally you don't have the reserve bank to set the policy and comes with it all the bunch of economic terms.

https://www.google.com/webhp?sourceid=cphrome-instant&ion=1&espv=2&ie=UTF-8#q=regulation%20of%20online%20gambling

There is definitely GDP and debt in bitcoin. Every time someone buys a final good with Bitcoin it effects the GDP and I myself currently have debt denominated in bitcoin through BTCJam.com

[virtfund]

And I think it would be foolish to say that the interaction between multiple decentralized, intrinsic-valueless currencies would not lead to at-least some novel economic effects.

[dinofelis]

And I think it would be foolish to say that the interaction between multiple decentralized, intrinsic-valueless currencies would not lead to at-least some novel economic effects.

I don't think there would be anything special with that.  After all, fiat money is already such an asset.  What is somewhat different, is the micro-economic equations of the producers of those assets.  In the case of fiat moneys, these are essentially private banks writing out loans.  In the case of cryptocurrencies, these are miners/minters.  The rules to which these abide are different.  But the interaction of assets without intrinsic value is already old as the world.

[Erdogan]

And I think it would be foolish to say that the interaction between multiple decentralized, intrinsic-valueless currencies would not lead to at-least some novel economic effects.

At the current level, profound effects for the individual: Larger economic freedom, less cost, to move money over boarders and trade remotely. Possibility to save in money in stead of apartment. For submarkets: More effective blue markets, avoid absurd regulations and hide your money.

Great effects that comes when and if bitcoin takes a substantial part of the economy: It restricts governments to spend only taxes, taxes necessarily lower because people will hold fast to their money.

Keywords: Sound money, hideability, mobility. All new compared to fiats.

[thaaanos]

http://informationtransfereconomics.blogspot.gr/
enjoy

Not long ago I had described a coin that rusts, ie it expires.
Creating not a trimetalic but multimetalic system
This essentaily I think that can capture the growth or shrink of market activity, within the effective money supply used.

[qiwoman2]

I would think that cooperative villages and small towns using Bitcoin as a main currency or other cryptocurrencies for that matter would help to create a society with less disparity between rich and poor. Now fiat is controlled by the large corporations but if every village invested also in bitcoin mining and spread the wealth of that investment to all villages then it could help generate more real income for many who now don't have a chance in hell to make a living.