Okay so one of the things some may not know given my recent penchant for incessant trolling of Team Cryptoid is that I was quite the Bitcoin bull last year.
Like imagine this same level good natured obnoxiousness, but a bull.
Well, to start at the beginning: I have owned BTC on and off since about 2012 (wow was it a PITA to buy back then, lol!).
In fact, starting in about 2018 I had a recurring auto-purchase set up in Coinbase that hit every time I got a paycheck.
My rationale in the early days of ownership was that I thought it could be a legitimately interesting form of “internet money” which makes a lot of sense to me, because I’ve previously been a WoW gold farmer, an ISK banker, etc.
This is what the money printing crew is freaking out about when we talk about "the Fed giving money directly to people!" - not only is it not 'giving' (it's a loan) but like... just look at the scale here. 2/3
Now - if you're gonna tell us that the Fed is "printing money" or whatever, how about you go ahead and show us on here how that happens.
Point to where on the balance sheet the Fed hurt you.
And some follow-on observations about where we are today.
So first let’s talk about business & cycles.
Much of business is really just about projections and risk management.
The tricky thing about business is that too much risk can kill you, but so can too little risk.
The industry I come from (VC-backed software) is always reminding is not to take too little risk. Because our businesses have trivial incremental unit cost, we’re encouraged to juice our burn rates and acquire customers as fast as possible.
Continuing on here in the reserve currency theme, let’s also touch on the whole ‘game theory’ thing since that comes up every now and then.
First: what is game theory?
Well it’s juts a way to model strategic decision-making amongst rational actors. The field is deep and very rich, and my first interaction with it was actually when studying International Relations (before I discovered the god-discipline, Philosophy).
It’s a very rich field.
And we can apply it to thinking about money.
Obviously certain crypto proponents often hand wave at it, & what they’re suggesting is that Bitcoin is so valuable that a nation would be self-sabotaging to ban it.
But of course this is just a banal rhetorical fallacy.
Okay look - so my buddy @MetreSteven says stuff like "QE is deflationary" and then a bunch of people who can't systems think or see farther than 5 seconds into the future laugh and say "but why are prices going up wood office guy?"
Let's try and resolve the delta here.
Apologies, but you'll need to be mildly familiar with this thread and/or the notion that money is inherently temporal.
It's a pretty fast read tho, so just skim it and then we can discover why QE is deflationary together.