Why are economists so afraid of Bitcoin?

[quone17]

Economics are worried it will work and prove something they believe is wrong.  Ignorance is bliss.  Many economists believe you need to keep creating money and the more money the better.  This would dent that argument.  I would think economics want to embrace it and see what happens with this experiment.  I only hope we get to see what happens and it doesn't get ruined by something like a 51% attack...

[thaaanos]

Its like the economists have gone on a witch hunt against Bitcoin!

Whats their problem?

It's really quite simple.
Those who are afraid of bitcoin are spineless liberals who despise grassroots movements by the people.
They believe in government solutions.  Bitcoin contradicts their ideology.

we are not against the design, we are against the initial conditions, when you understan that, maybe you get over your prejudice

And again we say to you who are them: don't use bitcoins. Problem fixed. End of story.

So you say... what if my houselord demands rent in bitcoins?

[Ibian]

Its like the economists have gone on a witch hunt against Bitcoin!

Whats their problem?

It's really quite simple.
Those who are afraid of bitcoin are spineless liberals who despise grassroots movements by the people.
They believe in government solutions.  Bitcoin contradicts their ideology.

we are not against the design, we are against the initial conditions, when you understan that, maybe you get over your prejudice

And again we say to you who are them: don't use bitcoins. Problem fixed. End of story.

So you say... what if my houselord demands rent in bitcoins?

He doesn't. Why are you even here?

[thaaanos]

Its like the economists have gone on a witch hunt against Bitcoin!

Whats their problem?

It's really quite simple.
Those who are afraid of bitcoin are spineless liberals who despise grassroots movements by the people.
They believe in government solutions.  Bitcoin contradicts their ideology.

we are not against the design, we are against the initial conditions, when you understan that, maybe you get over your prejudice

And again we say to you who are them: don't use bitcoins. Problem fixed. End of story.

So you say... what if my houselord demands rent in bitcoins?

He doesn't. Why are you even here?

What if? Because I like cryptocurencies?

[Light]

Many economists believe you need to keep creating money and the more money the better.

I'm not exactly sure that's the viewpoint of most economists, that simply creates inflationary pressures and screws over the consumer in general. As to OP, I personally don't feel economists are afraid of BTC as much as they are wary of it considering the fact that it's a new experiment of which the likes have never been seen in the past; nothing with this kind of idea has made it so far. Plus it's hard to theorise about it considering much of the value is speculation unrelated to actual real-world factors.

[Lloydie]

Many economists believe you need to keep creating money and the more money the better.

I'm not exactly sure that's the viewpoint of most economists, that simply creates inflationary pressures and screws over the consumer in general. As to OP, I personally don't feel economists are afraid of BTC as much as they are wary of it considering the fact that it's a new experiment of which the likes have never been seen in the past; nothing with this kind of idea has made it so far. Plus it's hard to theorise about it considering much of the value is speculation unrelated to actual real-world factors.

I would add that the entire economic "profession" is entirely theoretical.  I'll provide examples:

The econometric models assumes entirely rational decision makers. This is not true in reality.

Neo classical economics assumes debt does not matter. Actually, debt does matter in fractional reserve banking.  It brings forward future money to present day spending. Credit adds to the money supply in the short term.

Ben Bernanke blames the failure of regulation for the GFC, citing predatory lending. In reality, bank debt levels were too high not only at Lehman but at all the investment banks.

The Fed Reserve does not believe in free markets because they are manipulating long term interest rates to spur artificial credit growth.  Central banks all over the world are suppressing long term borrowing costs, which artificially increases asset prices. This widens the gap between the rich and poor.

A fast food worker can work a whole day and not earn as much as a rich person sitting on their bums earning capital gains on their assets in one hour.

This is the real world that we live in. This is the red pill.

[Carlton Banks]

Its like the economists have gone on a witch hunt against Bitcoin!

Whats their problem?

It's really quite simple.
Those who are afraid of bitcoin are spineless liberals who despise grassroots movements by the people.
They believe in government solutions.  Bitcoin contradicts their ideology.

Spineless Liberals - that's harsh, it sounds biased, I have held the overselling opinion that I am a conservative, a liberal, a libertarian, even an anarchist. The political ideology is nothing more than a label in defining people who believe in a general method is the optimal way to achieve social harmony and economic efficiency. Those afraid of Bitcoin are not spineless, just ignorant at some level.  

+1.

Too many people don't even think about what "liberal" even means (as a principle). "Liberals" in the US have a very limited sense of actually espousing liberal values (amusingly, very much in itself the opposite of the definition of the word "liberal")

If anyone spends long enough watching or reading Russia Today, they'll notice the European versions of the Libertarians in Britain and France. Apparently, "Libertarian" is characterised by being an ultra-nationalist, borderline or overt racist, pseudo fascist and not forgetting corporate capitalist. Hard right in a Hitler way.

Strange, eh? You identify with being a Liberal in the US, and you end up being statist authoritarian. You want to be a Libertarian in Europe, and you end up with Ultra-Right mega-racist parties to choose from. Why can't we sign up to politics that the label describes?

[thaaanos]

Many economists believe you need to keep creating money and the more money the better.

I'm not exactly sure that's the viewpoint of most economists, that simply creates inflationary pressures and screws over the consumer in general. As to OP, I personally don't feel economists are afraid of BTC as much as they are wary of it considering the fact that it's a new experiment of which the likes have never been seen in the past; nothing with this kind of idea has made it so far. Plus it's hard to theorise about it considering much of the value is speculation unrelated to actual real-world factors.

I would add that the entire economic "profession" is entirely theoretical.  I'll provide examples:

The econometric models assumes entirely rational decision makers. This is not true in reality.

It also assumes market equilibrium which never happens.

Neo classical economics assumes debt does not matter. Actually, debt does matter in fractional reserve banking.  It brings forward future money to present day spending. Credit adds to the money supply in the short term.

It also assumes market equilibrium which never happens. Debt doesn't matter

Ben Bernanke blames the failure of regulation for the GFC, citing predatory lending. In reality, bank debt levels were too high not only at Lehman but at all the investment banks.

Blame Clinton

The Fed Reserve does not believe in free markets because they are manipulating long term interest rates to spur artificial credit growth.  Central banks all over the world are suppressing long term borrowing costs, which artificially increases asset prices. This widens the gap between the rich and poor.

Fed doesnt believe in free markets because they dont exist. Privilege is what widens the gap   

A fast food worker can work a whole day and not earn as much as a rich person sitting on their bums earning capital gains on their assets in one hour.

This is the real world that we live in. This is the red pill.

In a bitcoin world the only diffrence is that he wouldnt have a job

[Lloydie]

Many economists believe you need to keep creating money and the more money the better.

I'm not exactly sure that's the viewpoint of most economists, that simply creates inflationary pressures and screws over the consumer in general. As to OP, I personally don't feel economists are afraid of BTC as much as they are wary of it considering the fact that it's a new experiment of which the likes have never been seen in the past; nothing with this kind of idea has made it so far. Plus it's hard to theorise about it considering much of the value is speculation unrelated to actual real-world factors.

I would add that the entire economic "profession" is entirely theoretical.  I'll provide examples:

The econometric models assumes entirely rational decision makers. This is not true in reality.

It also assumes market equilibrium which never happens.

Neo classical economics assumes debt does not matter. Actually, debt does matter in fractional reserve banking.  It brings forward future money to present day spending. Credit adds to the money supply in the short term.

It also assumes market equilibrium which never happens. Debt doesn't matter

Ben Bernanke blames the failure of regulation for the GFC, citing predatory lending. In reality, bank debt levels were too high not only at Lehman but at all the investment banks.

Blame Clinton

The Fed Reserve does not believe in free markets because they are manipulating long term interest rates to spur artificial credit growth.  Central banks all over the world are suppressing long term borrowing costs, which artificially increases asset prices. This widens the gap between the rich and poor.

Fed doesnt believe in free markets because they dont exist. Privilege is what widens the gap   

A fast food worker can work a whole day and not earn as much as a rich person sitting on their bums earning capital gains on their assets in one hour.

This is the real world that we live in. This is the red pill.

In a bitcoin world the only diffrence is that he wouldnt have a job

You say you are greek but actually you are a republican. Like it or not bitcoin world is here and there is nothing you can do to stop it.

Its about time fat greek republicans get real jobs.

[Kungfucheez]

No ones "afraid" of bitcoin. There's your answer.

[Adrian-x]

No ones "afraid" of bitcoin. There's your answer.

I’m afraid to sell, I think I hang in the wrong circles, and they never tell me when or why I should buy just encourage and justify why to sell.

[Kungfucheez]

No ones "afraid" of bitcoin. There's your answer.

I’m afraid to sell, I think I hang in the wrong circles, and they never tell me when or why I should buy just encourage and justify why to sell.

lol I guess I'm the same way. I think many are in the same boat too 

[htspringer]

No ones "afraid" of bitcoin. There's your answer.

I’m afraid to sell, I think I hang in the wrong circles, and they never tell me when or why I should buy just encourage and justify why to sell.

I can't understand for the life of me where are all of the bitcoin sellers are coming from.  Everyone I know with bitcoins wants to hang on to them.

[Adrian-x]

In a bitcoin world the only diffrence is that he wouldnt have a job

This may be true, and if it is it highlights the source of the problem.  
 
If “he” is unemployed, and is capable of contributing to society but is prohibited because he can’t find a Job, (people with capital are reluctant to put it to work for “valid” economic reasons) or “he” can’t get hold of the means of production because people who own the means – the land and tools are reluctant to share.  

The Neoclassical economic model is to create debt with interest (treasury bonds) to encourage and benefit those with capital to lend to those who manage the economy so they can create money to lend, to be paid back with interest and taxes so those who have the means, can partake in the economy.  

The simplified problem above and its proposed solution is what led Marx to ridicule capitalism. Although Marx had insights as worthy as Keynes as and Hayek, he undermined entrepreneurship and innovation to the determent of his ideas.


The problem is a meme of Human rights,  sustainable rights do not infringe on each others rights. except for the right of property provided by god. A claim to have a right to god given property, denies all otter human that right, and thus should come with some responsibility.
 
And as long as we construct economic systems to preserve that meme, they will fail, Marx, Keynes as and Hayek, all saw the benefits and perils of right to god given property, Mark sort to eradicate it, Hayek sort to strengthen it, and Keynes sort to manage it with tax and a welfare state.

Untested to date is Hayek’s approach your comment above suggests we will all wind up unemployed, I bet we won’t all wind up unemployed but we will test the limits of the meme of private property and what responsibilities are fair and emerge with a sustainable system.

[htspringer]

Economics are worried it will work and prove something they believe is wrong.  Ignorance is bliss.  Many economists believe you need to keep creating money and the more money the better.  This would dent that argument.  I would think economics want to embrace it and see what happens with this experiment.  I only hope we get to see what happens and it doesn't get ruined by something like a 51% attack...

It's laughable to watch these naysayers sit in their ivory towers and predict the downfall of bitcoin.  There are going to be alot of people eating crow six months from now.

[Adrian-x]

No ones "afraid" of bitcoin. There's your answer.

I’m afraid to sell, I think I hang in the wrong circles, and they never tell me when or why I should buy just encourage and justify why to sell.

I can't understand for the life of me where are all of the bitcoin sellers are coming from.  Everyone I know with bitcoins wants to hang on to them.

I sold a shitload at an average of $13, the current sellers may just be the next wave at that sell stage.

[MoonShadow]

No ones "afraid" of bitcoin. There's your answer.

I’m afraid to sell, I think I hang in the wrong circles, and they never tell me when or why I should buy just encourage and justify why to sell.

I can't understand for the life of me where are all of the bitcoin sellers are coming from.  Everyone I know with bitcoins wants to hang on to them.

A good percentage of the coins available on the exchanges come directly from mining operations that must sell some percentage of their earnings in order to pay the bills.  This is easily checkable via blockexplorer.com, as those coins you just bought can be traced back to the coinbase transaction pretty quickly.

[htspringer]

No ones "afraid" of bitcoin. There's your answer.

I’m afraid to sell, I think I hang in the wrong circles, and they never tell me when or why I should buy just encourage and justify why to sell.

I can't understand for the life of me where are all of the bitcoin sellers are coming from.  Everyone I know with bitcoins wants to hang on to them.

A good percentage of the coins available on the exchanges come directly from mining operations that must sell some percentage of their earnings in order to pay the bills.  This is easily checkable via blockexplorer.com, as those coins you just bought can be traced back to the coinbase transaction pretty quickly.

If that's true then those who are mining are losing money or breaking even.  Have you checked bitcoin difficulty lately?

[MoonShadow]

No ones "afraid" of bitcoin. There's your answer.

I’m afraid to sell, I think I hang in the wrong circles, and they never tell me when or why I should buy just encourage and justify why to sell.

I can't understand for the life of me where are all of the bitcoin sellers are coming from.  Everyone I know with bitcoins wants to hang on to them.

A good percentage of the coins available on the exchanges come directly from mining operations that must sell some percentage of their earnings in order to pay the bills.  This is easily checkable via blockexplorer.com, as those coins you just bought can be traced back to the coinbase transaction pretty quickly.

If that's true then those who are mining are losing money or breaking even.  Have you checked bitcoin difficulty lately?

No, I haven't.

[Rival]

To the point of the original post:


"It is difficult to get a man to understand something when his salary depends upon his not understanding it."
        - Sinclair Upton