Why does the stock market look like this while the world is falling apart?
twitter.com
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This quote from the thread is not accurate:
> "I own #Bitcoin because it's the one thing they can't manipulate or control."
Manipulating Bitcoin is certainly possible, even by non-state actors, e.g.,
How Much Would it Cost to 51% Attack Bitcoin? https://braiins.com/blog/how-much-would-it-cost-to-51-attack...
PoW 51% Attack Cost https://www.crypto51.app
Tether.
exchanges know everything about the short term moves its users can and cannot make, as well as a significant partial signal of their total market position based on where all their orders are, the amount of actual fiat money parked in their account, where their stop losses and other triggers are set and what exposures to different coins they have on the platform
> Nicehash does not have enough hashing power for most larger coins, so we also calculated what percentage of the needed hashing power is available from Nicehash.
For Bitcoin, that percentage is zero which renders the dollar cost 100% meaningless.
For Ethereum, it's 7% so it's also nowhere near vulnerable from the attack vector this website is calculating a price for.
Even forgetting about that glaring issue, purchasing hashing power on NH would..drive the price of hashing power up. You would not be able to buy all the hashing power at the price that it currently trades, just like you wouldn't be able to buy all BTC or GOOG shares at the price they currently trade. This should be obvious.
And lo, the plot was lost.
You do need a common measurement to be able to aggregate items together (a tractor and a sandwich, for example), and we generally use dollars for that, but I wouldn’t call that recursive.
You could also measure it in labor time, percentage of life people need to spend working, sea shells, or a variety of other measures depending on your aim.
if its the latter its somewhat disingenuous to use that word with its broader connotation instead of just 'sale amount'
One reply to that is to use different methodologies
The canonical reply is probably something on the order of “people can’t sustainably engage in practices where they exchange $1 of value for $0.50 of value, as they still need to exchange labor for food and other real goods.”
You normally see the latter play out through credit crises, where the benefits of some activity fail to materialize and therefore loans can’t be repaid, and a lot of pain follows.
Under that view instantaneous measures of GDP don’t mean much, but measurements averaged over longer periods, credit crises, etc. take on some meaning.
but we can assume that over time, and more importantly over many transactions, the 'true' value will surface (wash out all the weird signal).
Correct.
> M2 has grown because we have created value.
Incorrect. When the M2 grows, but the M2V(Velocity) falls, you created no value.
> "I own #Bitcoin because it's the one thing they can't manipulate or control."
Also incorrect. Unfortunately, TINA.