BitShares Forum
Main => General Discussion => Topic started by: tonyk on April 23, 2014, 09:45:43 pm
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People will be earning a ton of safecoin by providing resources to the network and most will be looking to sell it.
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A ton of air is going to a ton of people... what is its value? Why buy what you can earn. The network effect you want is demand based on scarcity and not supply based on abundance.
Price is driven by supply and demand, with safe coin there is ample supply but no demand. Those that hold it are constantly debased to fund the growing of the network.
Maidsafe is a case study in the same <b> supply-side economics </b> that is destroying the fiat economy.
I have always wondered how you reconcile your supply-side views with being the creator of bitAsset backed by nothing.
One of the main objection in the supply side towards the current fiat currencies is that they are not backed by gold/silver and because of that are causing an array of problems (mainly inflation).
Do you consider yourself more of a game theory follower than a supply-side proponent?
[EDIT] Probably not the best place to ask this question (if you have along answer you/toast can move this someplace), as this is pretty general question pretty unrelated to the discussion, but interesting thing to know anyway.
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BitAssets are not backed by nothing, they are backed by equity in a bank which is earning revenue from transaction fees.
I am a follower of human action as the root of all price discovery. Supply is just one component of human action. A rare item can have 0 value and an abundant item can have a lot of value. All value is perceived.
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I am not trying to start an argument!
I am simply trying to take a peek into your brain.
“backed by equity in a bank which is earning revenue from transaction fees”
Bank lending what – its own shares(*)… shares that are producing revenue by being lent to willing borrowers?
(*) not directly but lending something that is backed by only them themselves
[EDIT]Question 'human action' as in Mises understanding?
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I am not trying to start an argument!
I am simply trying to take a peek into your brain.
“backed by equity in a bank which is earning revenue from transaction fees”
Bank lending what – its own shares(*)… shares that are producing revenue by being lent to willing borrowers?
(*) not directly but lending something that is backed by only them themselves
[EDIT]Question 'human action' as in Mises understanding?
No argument assumed.
A bank promises to pay a dollar worth of value.... it creates that promise by holding 2 dollars worth of value as collateral. So the bank notes (deposits) are the product it creates, backed by its shares. Shares have initial value as perceived by the members of the co-op who own them.
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BitAssets are not backed by nothing, they are backed by equity in a bank which is earning revenue from transaction fees.
I am a follower of human action as the root of all price discovery. Supply is just one component of human action. A rare item can have 0 value and an abundant item can have a lot of value. All value is perceived.
How do we increase the value and utility in our shares in the shortest amount of time?
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BitAssets are not backed by nothing, they are backed by equity in a bank which is earning revenue from transaction fees.
I am a follower of human action as the root of all price discovery. Supply is just one component of human action. A rare item can have 0 value and an abundant item can have a lot of value. All value is perceived.
How do we increase the value and utility in our shares in the shortest amount of time?
I would say network effect. As the number of active users increases, utility increases because each Nth user adds N-1 new pathways between users (increasing utility, and thus indirectly demand) while simultaneously directly increasing demand because each user wants shares.