Philosophy of Everything

It is said that money value results from the quantity of money that are chasing the products. It is actually the opposite: money value depends on the rate of products chasing money. It sounds similar, but it is not the same. Let's take it slowly. The value of the money depends on the products that can be bought with a monetary unit. That value depends on the product price. The seller will always try to maximize its profit, so we will try to sell each product with the highest possible price. Higher price is an inflationary pression: one unit of money will buy less products. What opposes to the inflationary pression from the sellers? One limitation is the share of wallet that the consumer affords to allocate for that product. If a product is too expensive, potential customer might delay of give up buying that product. This creates a problem for the producer. But let's see closer why. The pressure for the producer to sell cheaper - in order to sell something - comes from its debt....

It's common knowledge that if you print more money, you will produce inflation. However, things are more complex than that. You can have both inflation and deflation in the same time. More often, we have relatively low inflation on common products and high inflation on specific products - think real estate. Money velocity First, there is that "money velocity" that equals the equation Products * Price = Money * Velocity . The money velocity is intuitive, but cannot be practically measured except from this equation - thanks to my namesake friend for this idea.

Welfare Welfare = produced  goods + redistribution curve At the basic level, welfare in society is just a matter of produced good (including services) and the redistribution curve. Money is not welfare in itself, as you cannot eat money. However, money is the system that controls the production and redistribution of goods. People with more money are entitled to consume more goods in this moment. But they can also chose to delay the consumption and have no impact in their welfare for the moment, then consume goods at a later time. Or money can lose value and can be never exchanged for the expected value. Money is motivation to produce goods Money also controls the motivation in the production of goods - like in working for salary or creating a company to get rich. Money permits to save the value of the goods that you produce now and later consume goods produces later - like when you retire. Money is used to redistribute goods to people that cannot produce goods (like unem...

This is not about a specific flaw in Bitcoin, however Bitcoin is a preeminent exponent of the crypto-currency galaxy. Any cryptocurrency that don't have a sufficient loan base have these problems. Bitcoin, especially, looks more and more like a Ponzi scheme that is just ready to blow. Only that there will be no Charles Ponzi to sue, only a lot of people that lost money and a few winners that sold the bitcoins before the bang. Or, with another metaphor, Bitcoin is like a global poker game where some will take the pot and the others will bite the dust. It may happen tomorrow or after years, but for me this is the only reasonable end. Until then, everybody believes they have a very good hand... Here are my arguments: No loans, no value

What gives value to money? There was a time when money was pure gold. Later, money was a certificate that you own a quantity of gold in bank (banknotes). Now the money are just quality paper, without any deposit behind. How that it has any value? Some said that money is just a convention, and the fact that the state accepts that coin as the "legal tender" gives it value. However, we know many coins that lost theirs value despite the state effort to  sustain it. How that other coins survives? I claim that debt is the one that gives value to the today's (fiat) money.