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20 sats \ 3 replies \ @xz 31 Jul \ on: 400 Ph.D. Economists vs. One Shiny Rock econ
I was getting in the elevator today, some neighbors and their young child got in and the child showed me her Rubik cube exclaiming "It's my toy!"
I don't know why but when I read this, it reminded me of this, as I wonder if you had 400 Ph.D economists with 400 Rubik cubes. I just don't see how this solves anything at all.
I'm fine with gold, silver and a few other commodity rocks' values and uses. I wouldn't be here if I didn't think Bitcoin represents something more fundamentally unique. But I'm not here to take away any of the merits of these, just to point out that Rubik cubes and MMT economic models are similar in their limited applications.
I am still not understanding people not knowing about the origin of money. How it originated, under what conditions it originated and why it originated. Mises had his brilliant regression theorem to apply to this problem. No, there are no rubric cubes and BTC will become money only if the regression theorem is met. That would mean we have to decide, as a voluntary market would, what is money, anew. The state does not and cannot make this decision and make it stick. Zimbabwe is a good case to help understand that.
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regression theorem
I can't say I'm read up on Rothbard. From first glance seems the theory has some debate with non-physical assets? Or you'd say otherwise? I'd imagine like most theories, they are subject to revision in their original premise as new challenges to them arise.
The state does not and cannot make this decision and make it stick.
But they try pretty damn hard. Thinking back on global history and the relative peaceful, or at least semi-stable state of affairs from the later 20th to the early 21st century, there was a brief period moment where the global broken money system at least functioned.
I guess regression theorem is what is said by 'intrinsic value'? Seems subjective in some sense. I was just reading about some tech company financing its balance sheet through purchases of Nvidia GPUs, and the discussion was based around them losing there value over time. Sometimes commodity financing at least seems to make more sense than paper valuations.
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The regression theorem was created/discovered by Mises to explain the origin of money. It regresses from yesterday’s value of money back to the first time money was made to have a value. He said that money got its value from the last time barter that goods were traded for goods and the most valuable good became money.
The value of money is always and everywhere subjective. It depends on what you think is more valuable, the money you earned or the good or service you desire. Then, you will only buy when you think the money is worth less than the thing you want to buy. Then and only then will you buy. Never when you think the money and the good are the same value. It is all subjective and depending on you at the time you make the decision.
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