Everytime I see news like this I imagine a lot of economists laughing.
From an economist perspective, price fluctuations on money is not a feature it is a very serious bug. There is a whole lot of economic theory worried on preventing it. "Good" money should avoid being the target of speculation, it should be stable, boring, predictable. Money that changes their prices is like an unit of measure (meters, quilos) that stretches and shrinks unexpectedly.
There was a long time ago when I could use bitcoins to buy web templates. Today almost no one accepts it as payment. Exactly because it is unstable.
I think it’s misleading to view a currency’s price “stability” as some intrinsic quality that determines whether or not it is suitable for broad adoption. Wild price fluctuations are a consequence of incomplete adoption, relative to the quote currency. Higher adoption leads to less fluctuation as the demand is more constant from day to day.
If we judged the stability of a currency by its supply stability, then Bitcoin would be the most stable currency ever to exist. But for now, it must compete with sovereign fiat currencies and everything is priced in those currencies, so it will appear extremely unstable and perhaps unusable for most transactions.
I used to be very bearish on crypto because all I saw was scam after scam and an unstable "currency" (Bitcoin) that no one used.
But as I've been getting more and more into crypto, especially DeFi, it's clear to me that we are on the cusp of something incredibly revolutionary. Right now, DeFi is to finance what the world wide web was to communication and content in 1993
The internet managed to break every established industry that relied on network effects and scale - media, commerce, communication. But it didn't do much for finance. The world's biggest banks are still the same as they used to be 30 years ago (whereas internet based companies have taken over media and commerce).
DeFi is going to change that. If you rummage through the scams (and there are a LOT of them), there are some truly exciting ideas being explored in this space. It legitimately feels like the internet in 1994. Heck, even the web design is wild and adventurous as it used to be instead of the boring, tame "professional startup" crap we see everywhere now.
maybe it's not "good" money. Bitcoin is a store of value and it's volatile, much like e.g. the stock of tesla. Conventional money is protected from speculation and swings by guns. Bitcoin is not going to have such protection, but it doesn't seem people who invest in it mind very much. Maybe the concept of what is "good money" has shifted.
I like seeing DOGE doing well. It has never been advertised as anything other than a meme so it's pretty funny watching it get memed into a huge pump. Compared to 99% of other crypto projects it makes no daft claims and doesn't advertise a new "partnership" every week.
Honest question from a nocoiner: are there communities, however small, that use meme coins as non ironic currencies? Like, can I rent a VPS for a month for 1000 doges or whatever from someone without any cross-currency conversion in between?
I know that if I seriously propose that offer someone will take it, but you know, I'm talking about something perennial
I don't know how I should feel, but I definitely know how I do feel about having owned 12 BTC that I bought for $300 about 10 years ago and then just traded until I lost it all, instead of just putting it on a usb key and forgetting about it for a while like I should have. Sigh. I did learn a thing or two about trading, so there is that. I learned enough to stop. (Along with the slightly tarnished feeling of having lost about half of it to the mtgox scandal.. also a good lesson, I guess.)
Years ago I paid 22,000 Italian Lire for a cheap meal. This is the same thing with the numbers the other way up.
More broadly, this is now a world in which everyone is short sanity and long craziness, until the "correction" arrives. Meanwhile I need to figure out how to cash out the "litecoin" I was given for free by Keybase.io .. what's the reliable exchange for this?
Its times like these I regret losing my doge coin wallet. I got in early on to learn about mining and what crypto was and in the process I think I mined somewhere in the area of 14000 coins. Its a shame I can only ride that $1 moon rocket in spirit with my lost wallet.
The community of genrosity and general kindspiritedness that formed around the silly currency really is a highlight of the time I've spent bouncing around internet communities. Its only fitting it pop up now I think.
[+] [-] diego_moita|5 years ago|reply
From an economist perspective, price fluctuations on money is not a feature it is a very serious bug. There is a whole lot of economic theory worried on preventing it. "Good" money should avoid being the target of speculation, it should be stable, boring, predictable. Money that changes their prices is like an unit of measure (meters, quilos) that stretches and shrinks unexpectedly.
There was a long time ago when I could use bitcoins to buy web templates. Today almost no one accepts it as payment. Exactly because it is unstable.
[+] [-] jkhdigital|5 years ago|reply
If we judged the stability of a currency by its supply stability, then Bitcoin would be the most stable currency ever to exist. But for now, it must compete with sovereign fiat currencies and everything is priced in those currencies, so it will appear extremely unstable and perhaps unusable for most transactions.
[+] [-] insertnickname|5 years ago|reply
Or because transactions became too expensive.
[+] [-] puranjay|5 years ago|reply
But as I've been getting more and more into crypto, especially DeFi, it's clear to me that we are on the cusp of something incredibly revolutionary. Right now, DeFi is to finance what the world wide web was to communication and content in 1993
The internet managed to break every established industry that relied on network effects and scale - media, commerce, communication. But it didn't do much for finance. The world's biggest banks are still the same as they used to be 30 years ago (whereas internet based companies have taken over media and commerce).
DeFi is going to change that. If you rummage through the scams (and there are a LOT of them), there are some truly exciting ideas being explored in this space. It legitimately feels like the internet in 1994. Heck, even the web design is wild and adventurous as it used to be instead of the boring, tame "professional startup" crap we see everywhere now.
[+] [-] mlthoughts2018|5 years ago|reply
[+] [-] cblconfederate|5 years ago|reply
[+] [-] deepsun|5 years ago|reply
[+] [-] robotmay|5 years ago|reply
[+] [-] prepend|5 years ago|reply
Still not sure who is spending money on the joke, but think it’s cool to see internet world/real world crossovers.
[+] [-] gowld|5 years ago|reply
[+] [-] eecks|5 years ago|reply
[+] [-] jkhdigital|5 years ago|reply
[+] [-] psychlops|5 years ago|reply
[+] [-] vslira|5 years ago|reply
I know that if I seriously propose that offer someone will take it, but you know, I'm talking about something perennial
[+] [-] sigmaprimus|5 years ago|reply
Such as
https://airvpn.org/
Edit* Sorry, on my phone and my eyes are not that great, I miss read communities and vps.
[+] [-] pixxel|5 years ago|reply
[+] [-] terse_malvolio|5 years ago|reply
[+] [-] radarsat1|5 years ago|reply
[+] [-] pjc50|5 years ago|reply
More broadly, this is now a world in which everyone is short sanity and long craziness, until the "correction" arrives. Meanwhile I need to figure out how to cash out the "litecoin" I was given for free by Keybase.io .. what's the reliable exchange for this?
[+] [-] adhoc_slime|5 years ago|reply
The community of genrosity and general kindspiritedness that formed around the silly currency really is a highlight of the time I've spent bouncing around internet communities. Its only fitting it pop up now I think.
[+] [-] Bluestein|5 years ago|reply
This is a first for Dogecoin, and it happened as the price of DOGE surged around eightfold overnight from $0.012 to over $0.08."
[+] [-] akmarinov|5 years ago|reply
[+] [-] yaszas|5 years ago|reply
[+] [-] unknown|5 years ago|reply
[deleted]
[+] [-] k__|5 years ago|reply
Curse you Elon!! :D