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30 sats \ 3 replies \ @denlillaapan 25 Jan \ on: Where does Eugene Fama think currency gets its value from? econ
Good podcast here from Mercatus that I hadn't seen yet: https://www.mercatus.org/marginal-revolution-podcast/new-monetary-economics
Relevant extract:
There’s the wealth and the liquid wealth you have that you can borrow against. Now my view isn’t the Fed doesn’t matter at all. In my view, liquidity is jointly produced by the private sector and by the Fed, but the Fed matters much less over time
The new monetary economics also suggested the marketability of money is not a single thing. There are different kinds of marketability. The notion that Bitcoin might be more marketable for getting your funds out of China, or escaping from Russia, that just seems obviously true. Or the notion that a programmable stablecoin might for some, but not all purposes, be more useful or more liquid than traditional dollars, again, that clearly seems to be true.
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11 sats \ 1 reply \ @SimpleStacker OP 25 Jan
dang, too much for me to read / listen to right now. Gotta bookmark this.
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30 sats \ 0 replies \ @denlillaapan 25 Jan
Good topic for MONEY CLASS. Will make a summary for yah :)
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0 sats \ 0 replies \ @Solomonsatoshi 25 Jan
And so where Bitcoin is used to escape autocratic regimes it is being used as a MoE, as it is being used to transfer value from one monetary system jurisdiction (say China) to another, say the US. However once you arrive in the more 'free' jurisdiction you are more likely to be required to convert the Bitcoin to dollars for use in everyday MoE transactions...because in most jurisdictions use of Bitcoin as a MoE is severely, if subtly, obstructed. It is in providing MoE (where otherwise it would be more difficult to use other currencies) that Bitcoin provides some utility and adds value to participants. But the fact remains the vast majority of people holding Bitcoin are doing so seeing it as a speculative commodity, not as a MoE. It is only in very narrow and exceptional situations as above where you are escaping from one jurisdiction to another where Bitcoin is used (briefly and one off) as a MoE and does add real value.
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