7/ Not all Bitcoin hoarders will be free riders of cos, but many will be. There’s a personal level of contribution that makes you a free rider or not.
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8/ A much simplified example: you own 1% of all BTC supply, and the economy grew by 10%. If you contributed less than 1% of that 10% growth, you are a free rider.
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9/ The more you hoard & the less you contribute back *relative to the amount you hoard*, the more of a free rider you become.
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Replying to @hugohanoi
A currency hoarder 1) bears the opportunity costs of other investments & 2) helps sustain the value of the currency so that the society can keep a low time-preference. That's not "free" riding.
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Replying to @timos_m @hugohanoi
Is a hoarder of google's stock free-riding google's good performance? It probably makes sense to think of holding BTC as holding shares of the global economy.
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Replying to @timos_m
Hugo Nguyen Retweeted Hugo Nguyen
Of cos, I never said HOLDing provides no benefits. I described it at length here.https://twitter.com/hugohanoi/status/1021131693191618560 …
Hugo Nguyen added,
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Replying to @hugohanoi @timos_m
The benefits however are not unconditional. It must work in tandem with other areas (production) to continue staying beneficial. Otherwise too much of it and it alone *can* (not always) devolve into free riding.
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Replying to @hugohanoi @timos_m
Can’t compare a currency to GOOG stock because when you park your capital in GOOG you are parking it a productive asset. Equity != money.
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Replying to @hugohanoi
If you view the world economy as an enterprise, then you may see the analogy, in which money is equity of the global economy. That's why your example of profiting from GDP growth works. And that's why if you don't think GOOG owners are free-riders, you shouldn't think so for BTC.
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Replying to @timos_m @hugohanoi
When you park your capital in BTC, someone else takes the other side of the trade and does something with it, contributing to the world economy. In this sense, after BTC is established as the world reserve currency, investing in BTC is investing in the world economy.
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Money is really not equity of the global economy though
Money is not equity, period. When you park money in a non-productive asset, it is OUT of the system completely.
The non-productive asset value can only rise if it piggies back on the success of productive assets.
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