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patrissimo's profile
Patri Friedman
Patri Friedman
Patri Friedman
@patrissimo

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Patri Friedman

@patrissimo

On virtue, venture, family, freedom, crypto and (of course) building startup countries on the ocean.

San Jose, CA
patrifriedman.com
Joined October 2008

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    1. Patri Friedman‏ @patrissimo Aug 31

      Patri Friedman Retweeted Bonaparte

      Currency is used to measure and exchange value. Monetary policy relates to value creation in 2 main ways: First, the lack of stable currency makes value creation harder: costs/revenue are measured with a changing ruler, cost of capital unclear, hard to make fixed-price contractshttps://twitter.com/FatiAmans/status/1035604389535338501 …

      Patri Friedman added,

      Bonaparte @FatiAmans
      How does value creation relate to monetary policy? How would a fixed-supply currency be future-proof if new value is created in perpetuity? Is my assumption that currency represents abstract value incorrect?
      Show this thread
      1 reply 4 retweets 17 likes
      Show this thread
    2. Patri Friedman‏ @patrissimo Aug 31

      Second, monetary policy implies someone is minting or burning tokens. Minting tokens transfers value from holders to the minter. If used well, this may provide benefits (say, funding crypto devs), or costs (central bank asset price manipulation).

      1 reply 0 retweets 8 likes
      Show this thread
    3. Patri Friedman‏ @patrissimo Aug 31

      Like any technology, currency has tradeoffs. The best measure might hold a constant price w.r.t. some value bundle, but that's hard b/c population growth increases demand (deflation), productivity decreases actual cost of any given value bundle, etc.

      1 reply 0 retweets 7 likes
      Show this thread
    4. Patri Friedman‏ @patrissimo Aug 31

      And in order to maintain that constant price, you have to let someone mint, a profitable right which historically has been seized by central authorities, and then overused, debasing currencies (while claiming to be doing public good).

      1 reply 0 retweets 8 likes
      Show this thread
      Patri Friedman‏ @patrissimo Aug 31

      A fixed money supply sacrifices some price stability (the expected result is deflation) as well as the extremely dubious economic stabilization ability claimed by central bankers, in order to ensure no one is stealing value through minting.

      12:44 PM - 31 Aug 2018
      • 3 Retweets
      • 26 Likes
      • Autumnal Misha (((Deplorable))) Center Fire HappyAcres Spook-cer Elliot Gianni Mimetïc Value Kirk_Hinrich_12 Hochfrequenz-Tulpentradingbot
      2 replies 3 retweets 26 likes
        1. Patri Friedman‏ @patrissimo Aug 31

          In an age characterized by decreasing trust in our decaying institutions (the Paper Belt is rotting), it is natural to want to return to hard money. Why sacrifice value to the minters if you don't trust them to actually use it for good? Have they been doing so?

          0 replies 2 retweets 14 likes
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        1. Spinborg Botticcus‏ @Spinborg Sep 3
          Replying to @patrissimo @cyborg_nomade

          you enjoying moms boyfriend (the

          0 replies 0 retweets 0 likes
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