What does Demosceners thinking about NFT?
category: general [glöplog]
WTF?!
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And yes, the "velocity of money" dropped sharply due to Covid, so we surely have a problem. But well, it's hard to say if crypto/NFT is any solution here.
That's a real problem for cryptocurrencies actually to be an actual 'currency'. (Apart from the scepsis :P) Due to the crazy value swings they're used as buy-and-hold investments rather than quick money exchange and thus have a low velocity. Slight inflation is usually ideal for keeping velocity high, that's why central banks love a ~1-2% annual inflation on conventional money. The low velocity is also helped by the fact they have high transaction costs that they're currently not interesting as an ubiquitous payment alternative to conventional money.
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Whenever rent is introduced you start the process of creating something which doesn’t exist. At which point the system is no longer backed up by actual value, but by imaginary value. Add to this that the dollar is no longer backed up by anything, like Gold. This has given the Central Banks, such as the FED which is not a government agency, free reign to print as much money as they like, as long as they don’t spook the market or the general public.
I don't know if central banks in separate countries operate differently. I read a book by a financial journalist that explained that at least in Sweden, individual banks can invent money by the push of a button as soon as someone wants to borrow them. Banks make some rudimentary solvency checks on their customer and the banks themselves only need to be able to back a tiny fraction of what they lend. What could possibly go wrong?
Indeed, whenever a mortgage is created, the bank creates money out of thin air.
Gabbie: so I see you don't like if money is created of thin air, but it's ok if they are created from ether?
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Indeed, whenever a mortgage is created, the bank creates money out of thin air.
Could really give a fuck about NFT's - seems like a scam: I'll sell you this unique digital file (which you could just download a copy of for free) but this 1 is unique...
Sauce:? Trust me bro...
But...
You got to the bank
You ask for a mortgage, based upon the risk they perceive you are to them on defaulting on the LOAN they LOAN you the money, taking it out of they reserves or their own investments.
The money was always there - the bank has just given it to you for a time period at a cost.
I think you're trying to talk about intrinsic value - which has merit in this discussion but the example you gave was incorrect.
@tomkh
No, that’s why I don’t like cryptocurrencies either.
@ringofyre
I don’t like NFT’s and I don’t like the banking system. They are part of the same financial system.
And no, the bank does not take anything out of their reserves when they loan you money. When you loan let’s say €100.000,00 from the bank, they literally type that into the computer and create €100.000,00 out of thin air. It’s not backed up by anything other than your contractual obligation to pay it back, with interest, over time.
No, that’s why I don’t like cryptocurrencies either.
@ringofyre
I don’t like NFT’s and I don’t like the banking system. They are part of the same financial system.
And no, the bank does not take anything out of their reserves when they loan you money. When you loan let’s say €100.000,00 from the bank, they literally type that into the computer and create €100.000,00 out of thin air. It’s not backed up by anything other than your contractual obligation to pay it back, with interest, over time.
Gabbie: that's all true. The problem is this argument that traditional money are bad can be used by scammers to lure you into crypto controlled by even worse criminals, like Vitalik's oligarch friends.
AFAIK Bitcoin was the only decentralized currency, but it had major scalability issues and really bad impact on the climate, so in a way it failed already. But the rest is just a scam IMHO
AFAIK Bitcoin was the only decentralized currency, but it had major scalability issues and really bad impact on the climate, so in a way it failed already. But the rest is just a scam IMHO
Just have to comment on recent subject in the thread, that everyone should read the, already classic The Creature From Jekyll Island - A Second Look at the Federal Reserve if they haven't already.
@tomkh: Bitcoin is controlled by hashing power and recently when the electricity grid(*) in parts of central Asia had a problem, 15% of that power went offline. So not as decentralised as one might think.
(*) The dirtiest, coal burning grid you can imagine.
(*) The dirtiest, coal burning grid you can imagine.
El Topo: what else did I say? exactly that it has "bad impact on the climate".. also that it is in fact my *main* worry
@tomkh: The environment was not my main point though.
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AFAIK Bitcoin was the only decentralized currency
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AFAIK Bitcoin was the only decentralized currency
Didn't 15% of the bitcoin network operating crash when Kazakhstan cut it's internet a few weeks ago? Doesn't sound very decentralized.
That's another big problem indeed, for both systems. No electricity and or the internet; no money. Unless of course you have some cash piled up, but most checkout systems won't operate without electricity or the internet.
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Just have to comment on recent subject in the thread, that everyone should read the, already classic The Creature From Jekyll Island - A Second Look at the Federal Reserve if they haven't already.
Since Archive.org doesn't present any of the following, it should be known that the author is "an American author, filmmaker, and conspiracy theorist.", that his writings "promote a number of right-wing views and conspiracy theories regarding various of his political, defense and health care interests." and the book in question "which advances debunked conspiracy theories about the Federal Reserve System." is thusly not worth anyone's time as a credible factual source on anything. A classic among conspiracy theorists perhaps, but obviously irrelevant otherwise.
Furthermore: https://www.mediamatters.org/glenn-beck/who-g-edward-griffin-becks-expert-federal-reserve
Funny that sources like this get brought up whenever anything blockchain related is put under scrutiny.
As an aside, this is the second time that Gabbie has cited here a person known for saying HIV/AIDS doesn't exist. (The first time it was that guy who "injected himself with HIV live on television").
Yeah probably bears mentioning that the author of aforementioned book G. Edward Griffin is an HIV/AIDS denier as well, curiously enough.
Credits where credits are due, you quoted Serpent and not Gabbie.
Yes, I know.
Oh, true. Sorry Gabbie. Nevermind then. :)
Better look (like usually) at the talk page of that wikipedia slur. Or, read the book and debunk various claims yourself :) Media Matters is even more unbalanced "source" for anything.
No idea what this (the book) has to do with HIV/AIDS, except the usual mud throwing. As for NFT's, i'm not involved in any way i know of (at least to this day and probably won't be in future either)
No idea what this (the book) has to do with HIV/AIDS, except the usual mud throwing. As for NFT's, i'm not involved in any way i know of (at least to this day and probably won't be in future either)