Comment by georgecarlin | Hacker News Reader

Comment by georgecarlin | Hacker News Reader

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I agree printing money != printing wealth, in fact it has the exact opposite effect, it debases wealth. My argument is against the fallacy that since bitcoin's price is set by unregulated supply and demand, it has no value or is somehow less valuable than land or stocks, or is somehow intrinsically value-less. Bitcoin can be seen as the most credible implementation of pure Austrian price theory (notwithstanding some likely pumps at different exchanges etc).

Stock buybacks actually demonstrate my point. You only benefit from a buyback if they pay you more than what you paid for the share. Dividends are a separate issue as they apply to business being undertaken, and few people invest money based solely on dividend rate. IMO land as a speculative asset actually might the most appropriate comparison to Bitcoin.

At any rate, Bitcoin/Ethereum and others are fundamentally new asset classes, they are technologized money. They allow you to do things with value that were never possible before.

The OP claimed wealth was being printed. Bitcoin didn't exist a few years ago and by your definition it constitutes wealth. So the closest we've had to "printing wealth" is Bitcoin itself. I suggest you study quite a bit more finance before you become so enamored by all this. Stock buybacks and dividends are fully equivalent for example, the only real difference is how they're taxed.

> At any rate, Bitcoin/Ethereum and others are fundamentally new asset classes, they are technologized money. They allow you to do things with value that were never possible before.

This is too breathless to be meaningful. Care to name a few actual uses? There's a long way still for cryptocurrencies to demonstrate they actually bring anything of value to the table. From what I've seen so far Bitcoin may be a slight improvement on gold (an asset that's mostly useless these days) and Ethereum may be a slight improvement on complex financial instruments (things that are often actively harmful). I may be completely wrong of course, time will tell.

Most people that evangelize cryptocurrencies would probably be a lot better served by reading up on the basics of investing and start accumulating traditional baskets of assets. There's a long way to go before cryptocurrencies are validated as actually useful and a lot of risk along the way.

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