Money should represent value that ideally doesn’t change
Money represents human desire and trust. A can today doesn’t necessarily have the same value as the same can tomorrow; maybe someone came up with 1000 extra cans, maybe someone licked that can (ew!), maybe deliveries have been cut for the week and it’s the last can of soda in a hundred mile radius.
A can is worth “exactly” itself… only in the moment of a single transaction.
A can is worth “about the same” amount of a given currency… only when there is a steady delivery of cans from a steadily working factory producing millions of cans from a steady supply of raw materials with a trust in an expected steady production rate, against a trust in an expected steady demand, with a trust in the given currency’s expected steady exchange rate for other products.
At any other moment, a can’s price can change wildly.
What your describing is closer to speculation
Welcome to money.
and pyramid schemes (NFTs for example).
That is doubly wrong… but let’s focus.
explain to me […]
BTC is not an “ideal currency”, just another currency. It intends to fix only one problem: to bypass banking dependence. For other problems, you’ll need other currencies.
To “siphon money from others” is an inherent quality of all money; if you don’t believe me, try getting some money (with any value) without “siphoning” it from someone else.
Thank you for taking the time to respond. With siphoning money, I mean not giving actual value in return. The NFT market was a clear example of this: get some hype going, sell the promise of great gains on your investment, once the ball gets rolling make sure you’re out before they realise it’s actually worth nothing. In the end, some smart and cunning people sucked a lot of money from often poor and misinformed small investors.
I think I have an inherent idea of value, as in: the value it has in a human life and the amount of effort needed to produce it. This has become very detached from economical value, as there you can have speculation, pumping value and all that other crap. I think that’s what frustrates me about the current financial climate: I just want to be able to pay the people who helped produce the product I buy fairly with respect to how much time and work they put it. Currently however, so much money is being transferred to people “just for having money”. The idea that money in and of itself can make more money is such a horrible perversion of the original idea of trade…
Money represents human desire and trust. A can today doesn’t necessarily have the same value as the same can tomorrow; maybe someone came up with 1000 extra cans, maybe someone licked that can (ew!), maybe deliveries have been cut for the week and it’s the last can of soda in a hundred mile radius.
A can is worth “exactly” itself… only in the moment of a single transaction.
A can is worth “about the same” amount of a given currency… only when there is a steady delivery of cans from a steadily working factory producing millions of cans from a steady supply of raw materials with a trust in an expected steady production rate, against a trust in an expected steady demand, with a trust in the given currency’s expected steady exchange rate for other products.
At any other moment, a can’s price can change wildly.
Welcome to money.
That is doubly wrong… but let’s focus.
BTC is not an “ideal currency”, just another currency. It intends to fix only one problem: to bypass banking dependence. For other problems, you’ll need other currencies.
To “siphon money from others” is an inherent quality of all money; if you don’t believe me, try getting some money (with any value) without “siphoning” it from someone else.
Thank you for taking the time to respond. With siphoning money, I mean not giving actual value in return. The NFT market was a clear example of this: get some hype going, sell the promise of great gains on your investment, once the ball gets rolling make sure you’re out before they realise it’s actually worth nothing. In the end, some smart and cunning people sucked a lot of money from often poor and misinformed small investors.
I think I have an inherent idea of value, as in: the value it has in a human life and the amount of effort needed to produce it. This has become very detached from economical value, as there you can have speculation, pumping value and all that other crap. I think that’s what frustrates me about the current financial climate: I just want to be able to pay the people who helped produce the product I buy fairly with respect to how much time and work they put it. Currently however, so much money is being transferred to people “just for having money”. The idea that money in and of itself can make more money is such a horrible perversion of the original idea of trade…