809 karma · joined January 5, 2019
Well - the consumer will need to buy 4 of the $800 dollar sofas just from having to replace them throughout a 20 year period vs. having the ability to buy one (the $1500) one but that's not obvious to the consumer and it's not clear how to even make this type of judgment. Which sofa really costs the most to you given the information I just provided? The high-quality $1500 one or the $800 dollar one? To a rational person having all of the above information - the more costly one is cheaper - but to an average consumer not having this information the clearly cheaply made product is the better choice. People also are prone to more short-term thinking in many societies which also doesn't help things but the takeaway in general which you posted there is very wrong: mass production and scale usually result in higher-quality products not lower quality ones.
1) The approval of various ETFs (so demand is heightened). It's much easier to invest in it than in was in the past.
2) Traders expecting the supply to tighten (see bitcoin halving which is due very soon) and the demand there also heightening due to supply constraint expectation.
3) A lot of the uncertainty in terms of exchanges is gone. Coinbase looks like it can stand up to scrutiny and this furthermore boosts demand.
When you have huge demand vs. constrained supply, bubbles form. Of course, are all of the factors I mentioned enough to keep the bubble going for a very long time? Well, that I can't answer. No one knows how long this will last. I can tell you though that this to me looks like it is the next Tulip bubble. I see almost no reason to use bitcoin as a store of wealth. As a decentralized currency it has tremendous value, but treating it as gold I have reservations on since a lot of corrupt gangs and regimes are currently using it as a method of payment and laundering (including North Korea), as well as it being a huge drain on the world's energy supply due to mining energy needs...I don't really see what value it brings to the world at all, so treating it as 'virtual gold' (the way the world has been treating it) makes 0 sense to me, but in general, the world in the short-term sometimes makes very little sense. Over the long term, things tend to clear up. Hopefully that helps.
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My comment tries to give the PCA to what contributes to males taking more risks than females within the human species. This isn't a hypothesis - there have been a lot of studies which have shown human males to engage in risk-related behaviors when other females are present. It's also supported by other male-dominated species as well - the males have one single 'alpha' male which females choose to mate with -- but that 'alpha' male will need to take more 'risks' and be more aggressive in order for him to be in such a position in the first place. I'm not sure what you're expecting me to also list out in a hacker news discussion, but this is the best I can do. If you feel like you have counter-arguments -- feel free to post them and I'll be happy to take a look at them and reconsider my position OR post studies which show that you're wrong. Cheers.
Economics of Money and Banking: https://www.coursera.org/learn/money-banking
Lectures on the Geometric Anatomy of Theoretical Physics: https://www.youtube.com/playlist?list=PLPH7f_7ZlzxTi6kS4vCmv...
Introduction to Dynamical Systems and Chaos: https://www.complexityexplorer.org/courses/98-introduction-t...
Discrete Optimization: https://www.coursera.org/learn/discrete-optimization
The reason this happens is due to risk-taking behavior. Males take way more risks than females do - and you can find other studies which confirm this (i.e. for example this one: https://journals.sagepub.com/doi/pdf/10.1177/147470490800600...). When I read the Northcutt explanation for this I laughed -- it makes absolutely 0 sense and I can't believe that someone expanded energy in proposing this. It's absolutely ridiculous that someone would even suggest this, but meh.
Collateralized debt obligations: created as a way to pool and securitize various types of debt, providing a means for financial institutions to manage risk and enhance liquidity. Just because a few banks and institutions used them to create complex tranches of debt which 'attempted' to reduce risk while massively misusing statistics and increasing it which resulted in 2008 doesn't mean that CDOs aren't useful.
Gold: I suppose you haven't heard about its applications in electronics and connectors, bonding wires, connectors, switches, thin film applications and coatings and hugely used in the production of medical devices and in the aerospace industry?
Diamonds: this one I agree semi-agree with. The only reason they have value is because the De Beers limited supply and there was demand -- but the demand is there because people use them as a status symbol and men use them to show their 'love' or commitment to their partners so this one is questionable.