this post was submitted on 07 Dec 2024
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Unsurprisingly, he and his family were doxed by angry traders.

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[–] yeahiknow3@lemmings.world 31 points 2 weeks ago* (last edited 2 weeks ago) (4 children)

That’s not how money works. Fiat currency is just IOU’s, literally, which are discharged when the promissory note returns to its originator (in the case of dollars, the US treasury). Check out Debt the First 5000 Years for an anthropological look at the origins of money.

Whereas I would prefer to live in a moneyless (i.e., debtless) post-scarcity anarchist society, which is how small tribes and communities were organized for tens of thousands of years before the rise of nations, fiat currencies are used to maintain the modern (unimaginably huge) marketplace, whose ostensible purpose is to allocate scarce resources.

  1. Personal debt is risky. If I issue an IOU, I might die before I can fulfill that promise. Governments are more permanent, which removes the speculative aspect of currency (at least for most purposes, though Forex trading is a thing).
  2. A central bank can balance inflation and employment numbers to ameliorate the natural volatility of the market (with good regulation lol).
  3. Fiat currency can be synchronized with economic productivity, avoiding the deflationary pressure that is anathema to any currency.

Dollars represent faith in the power of the US government to extract taxes from its population. Crypto represents nothing. It stands for nothing. “Coins” come and go, and if you’re the last one standing in the zero-sum game of musical chairs, you lose your savings. For that to happen with dollars, the US government would have to implode, which is unlikely.

Crypto is, quite possibly, the purest form of speculative trading (gambling) we have ever concocted. The only reason I don’t think it should be illegal is that I have no interest in saving people from their own cupidity and greed.

[–] triptrapper@lemmy.world 3 points 2 weeks ago

Graeber's book (Debt: The First 5000 Years) is so, so good.

[–] surewhynotlem@lemmy.world 3 points 2 weeks ago (1 children)

For a large portion of time in those small anarchist communities, they'd raid and kill each other.

How would we prevent that?

[–] yeahiknow3@lemmings.world 3 points 2 weeks ago (1 children)

You’re absolutely right, and I have no idea. Maybe wait another 100,000 years for the 30% of humanity that lacks abstract moral reasoning to exit the gene pool.

[–] surewhynotlem@lemmy.world 5 points 2 weeks ago (1 children)

I'm convinced the reason we have so much government is to control that portion. And it's not even doing that good of a job.

[–] yeahiknow3@lemmings.world 2 points 2 weeks ago

Exactly. Now they’ve metastasized into our government. Fucking orcs.

[–] LibreHans@lemmy.world 1 points 1 week ago (1 children)

Dollars represent faith in the power of the US government to extract taxes from its population

Lol, the debt will never be repaid with taxes.

[–] yeahiknow3@lemmings.world 1 points 1 week ago (1 children)

That’s not the point. The US has the power to extract rents; it doesn’t have to use it.

[–] LibreHans@lemmy.world -1 points 1 week ago (1 children)

You live in fantasy land if you think the US has that power, any government that tries this would be overthrown.

[–] yeahiknow3@lemmings.world 1 points 1 week ago* (last edited 1 week ago) (1 children)

The thing is… the market disagrees with you. For now. But hey, put your money where your mouth is! I’ll give you a hundred rubles for a hundred dollars. If you really think the US government is impotent and on the verge of collapse…

[–] LibreHans@lemmy.world -1 points 1 week ago (1 children)

Haha, which market disagrees? The bond market, the gold market, the bitcoin market, the housing market?

[–] yeahiknow3@lemmings.world 1 points 1 week ago* (last edited 1 week ago) (1 children)

Since we are discussing dollars and not houses, that would be the FOREX market. The dollar is very strong at the moment.

[–] LibreHans@lemmy.world 0 points 1 week ago (1 children)

So you don't even know how the bond market and the dollar are related, and you attack my personality when I show your argument is wrong, which you don't understand because you don't understand the bond market.

[–] yeahiknow3@lemmings.world 1 points 1 week ago

FOREX is explicitly the market that compares the strength of competing currencies.

I’m aware of how the bond market works. What is your problem with the bond market?