> that also happens whether it is inadvertently just sitting there, or in bonds
Bonds fund useful activity. Most ICOs have yet to finance a single developer's salary.
Bonds fund useful activity. Most ICOs have yet to finance a single developer's salary.
The point the parent was making is that the money IS SITTING there. And bonds are not M0.... you are proving his point.
Anyone holding USD in a deposit account or loaned it out is speculating that the value of USD will remain almost the same (willing to lose 2% to inflation).
Of course someone holding a currency expects value to hold or go up. Unfortunately value of USD and other fiat goes down at exponential rate and by end of century will be practically worthless.
Imagine paper bills in year 2100. No?
Then you can imagine USA will digitize it's currency on some Blockchain of their own(this is a no brainer).
Now imagine THE Fed changing interest rates (aka Coin Emission Rate) as they please.
Pretty soon people will diversify their currency holdings away from a single country/government that can change emission (interest) rate at will and has onerous reporting and surveillance requirements.
Logical conclusion is a supra/trans-national global currency something Bitcoin or Monero.
"Granpa, was it true that when you were young you used to get paid in tree cotton papers?"
"No Timmy, I was not paid with paper money even in the 1990s."
Most forms of capital formation have no bearing on anything in physical goods and services economy, colloquially called "main street". ICOs are no different and I'm not sure why you feel the need to single them out.
The point here is that people are growing this currency's economy by reinvesting in new projects within that economy, just like they do in national currency economies. Thats what the article is about, thats why I've been pointing out, and what is hard to accept about that?
If they are underwritten by VC's you can be assured that the terms heavily favour them, and the immediate value is going into their pockets.
It's the ultimate rub.
A free, legal way to print Monopoly money that people will trade for real money.