Paul Krugman Effect

[Boussac]

It's interesting to witness how difficult it is to think out of the box even for a Nobel prize winner in economics.
He cannot help it but project on bitcoins his outdated vision of what a "monetary system" was before the invention of bitcoins.

Perhaps, Krugman new claim for fame is the definition of a new profession: bitcoin-basher.
Given the amount of reaction his moronic article generated, I am convinced that pretty soon some journalists or "economists" will be able to make a reasonable living out of it..

[1713942955]

1713942955

[1713942955]

1713942955

[1713942955]

1713942955

[The_Duke]

what a "monetary system" was before the invention of bitcoins.

Jesus F. Christ, the megalomania of some people never stops to amaze me. The monetary system before bitcoin? Really? Bitcoin has already changed all of that?

[cbeast]

what a "monetary system" was before the invention of bitcoins.

Jesus F. Christ, the megalomania of some people never stops to amaze me. The monetary system before bitcoin? Really? Bitcoin has already changed all of that?

There have been smaller money systems than bitcoin. Bitcoin is in an early phase, but it is global. Some people don't think it is revolutionary, yet. Time will reveal to them what the geeks already believe.

[iprivately]

While I don't like Krugman, having him mention Bitcoin in the NYT is huge. You'll see new entrants to the market.

[molecular]

While I don't like Krugman, having him mention Bitcoin in the NYT is huge. You'll see new entrants to the market.

... who will be able to buy at competitive prices!

[iprivately]

While I don't like Krugman, having him mention Bitcoin in the NYT is huge. You'll see new entrants to the market.

... who will be able to buy at competitive prices!

does it matter?

[molecular]

While I don't like Krugman, having him mention Bitcoin in the NYT is huge. You'll see new entrants to the market.

... who will be able to buy at competitive prices!

does it matter?

I didn't mean that in a bad way (envy). I'm not sure wether or not it makes any difference or what kind of difference that would be.

[netrin]

Maybe Krugman is more devious that we give credit. Who is going to look at this chart and say, "Hey, now doesn't that look like fun?"

[bitcon]

cant go anywhere but up now.

[iprivately]

take a look at this one, yikes!

http://i56.tinypic.com/9i94dk.png

[Grinder]

It's interesting to witness how difficult it is to think out of the box even for a Nobel prize winner in economics.
He cannot help it but project on bitcoins his outdated vision of what a "monetary system" was before the invention of bitcoins.

Reality seems to have the same outdated vision, but who cares?

[mobodick]

And now the bitcoin haters on slashdot are on to it: http://news.slashdot.org/story/11/09/08/2134242/Krugman-On-Bitcoin-and-the-Gold-Standard

Give slashdot some credit. The first post was:
Qualifying Krugman as a "prominent Keynesian economist" is like calling Stephen Hawking a "prominent Einsteinian physicist". I call shenanigans.

[dserrano5]

take a look at this one, yikes!

There's a subtle difference tho: DJI shows a ≅10% fall—mtgox has fallen 50% since the netrin graph highs.

[hightax]

And now the bitcoin haters on slashdot are on to it: http://news.slashdot.org/story/11/09/08/2134242/Krugman-On-Bitcoin-and-the-Gold-Standard

Give slashdot some credit. The first post was:
Qualifying Krugman as a "prominent Keynesian economist" is like calling Stephen Hawking a "prominent Einsteinian physicist". I call shenanigans.

For some stupid reason people who call themselves "austrian economists" are still given credibility despite their continued track record of failure, so in this case the distinction is prudent.

[kjj]

Give slashdot some credit. The first post was:
Qualifying Krugman as a "prominent Keynesian economist" is like calling Stephen Hawking a "prominent Einsteinian physicist". I call shenanigans.

For some stupid reason people who call themselves "austrian economists" are still given credibility despite their continued track record of failure, so in this case the distinction is prudent.

Heh.  Track record of failure.

If you want a real track record of failure, consider that all evidence in favor of Keynesianism is in the form of "well, sure, this was a fucking disaster, but think how much worse it would have been if we hadn't stepped in".

You wouldn't trust a doctor that killed each and every patient he ever treated just because he claims that they would have turned into bloodthirsty zombies if he hadn't helped.

[mrb]

The most insightful comment to Krugman's blog so far is the one suggesting that a very simple Bitcoin fork could address the only "flaw" that Krugman noted: one could change the cap from 21M coins to a slightly inflationary model where, for example, the coins supply would inflate by +2% every year. (I put "flaw" in quotes because the cap was specifically not seen as a flaw by Satoshi.)

Think about it people. If all it takes for a decentralized crypto currency to be successful (according to this prominent economist), then this fork of Bitcoin is bound to happen.

[molecular]

The most insightful comment to Krugman's blog so far is the one suggesting that a very simple Bitcoin fork could address the only flaw that Krugman noted: one could change the cap from 21M coins to a slightly inflationary model where, for example, the coins supply would inflate by +2% every year.

Think about it people. If all it takes to get a decentralized crypto currency validated by a prominent economist like Krugman, then this fork of Bitcoin is bound to happen.

KruggieCoin, yay! Do you think he could get major nationstates to use it? That would be quite a bit better than XYZScamCoin, although it also only has a slight modification of the code, too (most prevalent criticism towards OtherCoins)

[hugolp]

The most insightful comment to Krugman's blog so far is the one suggesting that a very simple Bitcoin fork could address the only "flaw" that Krugman noted: one could change the cap from 21M coins to a slightly inflationary model where, for example, the coins supply would inflate by +2% every year. (I put "flaw" in quotes because the cap was specifically not seen as a flaw by Satoshi.)

Think about it people. If this is all it takes to get a decentralized crypto currency validated by a prominent economist like Krugman, then this fork of Bitcoin is bound to happen.

Please go ahead and good luck.

Im really looking forward to someone to create an inflationary version of Bitcoin, so when it fails we can point at it and end up the nonsense.

[wumpus]

Im really looking forward to someone to create an inflationary version of Bitcoin, so when it fails we can point at it and end up the nonsense.

Bitcoin is extrememly inflationary at the moment, so the best example is itself. Much more than 2% of the current number of coins are generated per year. Yes, this won't be true some point in the (long) future, but that's so long away I doubt it has any influence on the market.

[Lupus_Yonderboy]

The Real Krugman Effect




I am really looking forward to the failure of Bitcoin so we can all point at it and end this nonsense

Nobel economist > armchair forum economists