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Why not some other cryptocurrency that also has those features?
For example, why not an existing or future fork of Zcash?
Why not some other cryptocurrency that also has those features?
For example, why not an existing or future fork of Zcash?
“[Insert favoured cryptocurrency] will become the next money” is an extremely easy to vary statement.
#2362·Erik OrrjeOP, 21 days agoZcash will become the next money. That's because it contains bitcoin's solutions to fiat, and also solves bitcoin's lack of privacy.
Why not some other cryptocurrency that also has those features?
For example, why not an existing or future fork of Zcash?
#2418·Erik OrrjeOP revised 18 days agoThe reason to back a currency with gold or some other commodity is that the commodity has other utility aside from being used as money. This sets a floor on the price, making it a store of value.
Utility is not a necessary aspect of money. Only 5-10% of gold's value is tied to its industrial use (https://www.statista.com/statistics/299609/gold-demand-by-industry-sectorshare/#:~:text=The%20jewelry%20industry%20accounted%20for,China%2C%20Russia%2C%20and%20Australia). Another 40% is used for jewellery.
This floor is not so reassuring if the asset were to plummet 50%. Other commodities, such as silver, have a greater industrial utility. That makes it less suitable as money since its value becomes tied to commodity cycles.
The reason to back a currency with gold or some other commodity is mainly due to its scarcity, which puts a limit on money creation (done through fractional reserve banking).
Utility is not a necessary aspect of money.
Money without other use cases only holds value to the degree it can continuously win a Keynesian Beauty Contest in the market.
In other words, it has no underlying value.
#2418·Erik OrrjeOP revised 18 days agoThe reason to back a currency with gold or some other commodity is that the commodity has other utility aside from being used as money. This sets a floor on the price, making it a store of value.
Utility is not a necessary aspect of money. Only 5-10% of gold's value is tied to its industrial use (https://www.statista.com/statistics/299609/gold-demand-by-industry-sectorshare/#:~:text=The%20jewelry%20industry%20accounted%20for,China%2C%20Russia%2C%20and%20Australia). Another 40% is used for jewellery.
This floor is not so reassuring if the asset were to plummet 50%. Other commodities, such as silver, have a greater industrial utility. That makes it less suitable as money since its value becomes tied to commodity cycles.
The reason to back a currency with gold or some other commodity is mainly due to its scarcity, which puts a limit on money creation (done through fractional reserve banking).
The price of a commodity and the quantity of it in use don’t strictly correlate in the way you suggest here. 50% of gold being tied up in industry, jewellery, etc. does not mean the price floor is at 50% of the current price.
#2418·Erik OrrjeOP revised 18 days agoThe reason to back a currency with gold or some other commodity is that the commodity has other utility aside from being used as money. This sets a floor on the price, making it a store of value.
Utility is not a necessary aspect of money. Only 5-10% of gold's value is tied to its industrial use (https://www.statista.com/statistics/299609/gold-demand-by-industry-sectorshare/#:~:text=The%20jewelry%20industry%20accounted%20for,China%2C%20Russia%2C%20and%20Australia). Another 40% is used for jewellery.
This floor is not so reassuring if the asset were to plummet 50%. Other commodities, such as silver, have a greater industrial utility. That makes it less suitable as money since its value becomes tied to commodity cycles.
The reason to back a currency with gold or some other commodity is mainly due to its scarcity, which puts a limit on money creation (done through fractional reserve banking).
By the standard you have set here, you have implicitly disqualified Bitcoin and Zcash. If gold is not good enough because it could fall to its price floor (your claim being 50%), then Bitcoin and Zcash are even worse because they have no floor at all. It might be more precise to say the floor is zero.
Thanks. Do you think there's correspondence for abstractions as well (such as mathematics, as DD seems to suggest)? As I understood, you only think we need it to explain progress in science.
Thanks. Do you think the aim in abstract fields (such as mathematics) is correspondence as well? (As Deutsch seems to argue with the idea of perfect propositions https://www.youtube.com/watch?v=DZ-opI-jghs).
#2409·Erik Orrje, 19 days agoThanks. Do you think there's correspondence for abstractions as well (such as mathematics, as DD seems to suggest)? As I understood, you only think we need it to explain progress in science.
…you only think we need it to explain progress in science.
No, I think progress in science is explained by error correction. The aim of science is correspondence. There’s a difference between aims and means.
Thanks Dennis
The reason to back a currency with gold or some other commodity is that the commodity has other utility aside from being used as money. This sets a floor on the price, making it a store of value.
- Utility is not a necessary aspect of money. Only 5-10% of gold's value is tied to its industrial use (per chatgpt). This floor is not so reassuring then if the asset would plummet 90-95%. Other commodities, such as silver, have a greater industrial utility. That makes it less suitable as money since its value becomes tied to commodity cycles.
The reason to back a currency with gold or some other commodity is mainly due to its scarcity, which puts a limit on money creation (done through fractional reserve bankning).
The reason to back a currency with gold or some other commodity is that the commodity has other utility aside from being used as money. This sets a floor on the price, making it a store of value.
Utility is not a necessary aspect of money. Only 5-10% of gold's value is tied to its industrial use (https://www.statista.com/statistics/299609/gold-demand-by-industry-sectorshare/#:~:text=The%20jewelry%20industry%20accounted%20for,China%2C%20Russia%2C%20and%20Australia). Another 40% is used for jewellery.
This floor is not so reassuring if the asset were to plummet 50%. Other commodities, such as silver, have a greater industrial utility. That makes it less suitable as money since its value becomes tied to commodity cycles.
The reason to back a currency with gold or some other commodity is mainly due to its scarcity, which puts a limit on money creation (done through fractional reserve banking).
#2409·Erik Orrje, 19 days agoThanks. Do you think there's correspondence for abstractions as well (such as mathematics, as DD seems to suggest)? As I understood, you only think we need it to explain progress in science.
Are you asking if there can be correspondence between two abstractions? Or between a physical object and an abstraction?
#2412·Erik OrrjeOP, 18 days agoThe reason to back a currency with gold or some other commodity is that the commodity has other utility aside from being used as money. This sets a floor on the price, making it a store of value.
- Utility is not a necessary aspect of money. Only 5-10% of gold's value is tied to its industrial use (per chatgpt). This floor is not so reassuring then if the asset would plummet 90-95%. Other commodities, such as silver, have a greater industrial utility. That makes it less suitable as money since its value becomes tied to commodity cycles.
The reason to back a currency with gold or some other commodity is mainly due to its scarcity, which puts a limit on money creation (done through fractional reserve bankning).
Only 5-10% of gold's value is tied to its industrial use (per chatgpt).
ChatGPT is notoriously unreliable and known for making stuff up. I recommend using a different, human-made source. Should be easy to find one using your search engine of choice.
In a gold standard society, gold doesn't need to be backed by anything. The same would be true for Bitcoin and Zcash.
In a gold standard society, gold doesn't need to be backed by anything. The same would be true for Bitcoin and Zcash. The US Federal Reserve Notes used to be backed by gold to prevent excessive money creation, gold itself, Bitcoin and ZCash won't need to be backed by anything due to their inherent scarcity.
#2412·Erik OrrjeOP, 18 days agoThe reason to back a currency with gold or some other commodity is that the commodity has other utility aside from being used as money. This sets a floor on the price, making it a store of value.
- Utility is not a necessary aspect of money. Only 5-10% of gold's value is tied to its industrial use (per chatgpt). This floor is not so reassuring then if the asset would plummet 90-95%. Other commodities, such as silver, have a greater industrial utility. That makes it less suitable as money since its value becomes tied to commodity cycles.
The reason to back a currency with gold or some other commodity is mainly due to its scarcity, which puts a limit on money creation (done through fractional reserve bankning).
The reason to back a currency with gold or some other commodity is that the commodity has other utility aside from being used as money. This sets a floor on the price, making it a store of value.
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#2411·Benjamin Davies, 18 days agoThe reason to back a currency with gold or some other commodity is that the commodity has other utility aside from being used as money. This sets a floor on the price, making it a store of value.
Bitcoin and Zcash have no utility beyond their transferability. The only way either would ever be money is if a government made it their legal tender, forcing transactions to be done with it exclusively.
To use US Dollar as an example again, the only reason it is money is that it has the alternative utility function of being the only thing the government will accept for tax payments. In that sense it is the only currency that keeps you out jail if you use it in its designated geographical area (!). If that weren’t the case then people would quickly swap to using something else—something that isn’t being manipulated by the government.
(To prevent any confusion, please understand that I believe governments should be completely agnostic to how people carry out their transactions, including allowing them to use any currency and even old-school barter if they wish.)
TL;DR The only way for the US Dollar, or Bitcoin, or Zcash (or any other unbacked currencies) to be useful as money is if a government makes them legal tender, and prohibits anything else being used in transactions.
The reason to back a currency with gold or some other commodity is that the commodity has other utility aside from being used as money. This sets a floor on the price, making it a store of value.
- Utility is not a necessary aspect of money. Only 5-10% of gold's value is tied to its industrial use (per chatgpt). This floor is not so reassuring then if the asset would plummet 90-95%. Other commodities, such as silver, have a greater industrial utility. That makes it less suitable as money since its value becomes tied to commodity cycles.
The reason to back a currency with gold or some other commodity is mainly due to its scarcity, which puts a limit on money creation (done through fractional reserve bankning).
#2408·Erik OrrjeOP, 19 days agoIn a gold standard society, gold doesn't need to be backed by anything. The same would be true for Bitcoin and Zcash.
The reason to back a currency with gold or some other commodity is that the commodity has other utility aside from being used as money. This sets a floor on the price, making it a store of value.
Bitcoin and Zcash have no utility beyond their transferability. The only way either would ever be money is if a government made it their legal tender, forcing transactions to be done with it exclusively.
To use US Dollar as an example again, the only reason it is money is that it has the alternative utility function of being the only thing the government will accept for tax payments. In that sense it is the only currency that keeps you out jail if you use it in its designated geographical area (!). If that weren’t the case then people would quickly swap to using something else—something that isn’t being manipulated by the government.
(To prevent any confusion, please understand that I believe governments should be completely agnostic to how people carry out their transactions, including allowing them to use any currency and even old-school barter if they wish.)
TL;DR The only way for the US Dollar, or Bitcoin, or Zcash (or any other unbacked currencies) to be useful as money is if a government makes them legal tender, and prohibits anything else being used in transactions.
#2408·Erik OrrjeOP, 19 days agoIn a gold standard society, gold doesn't need to be backed by anything. The same would be true for Bitcoin and Zcash.
You misunderstood my criticism. I said the US Federal Reserve Notes used to be backed by gold, not that the gold itself was backed by something.
#2407·Dennis HackethalOP, 19 days agoSee here. Lucas had asked:
Can you say more about why we need correspondence to make sense of the concept of self-similarity? I don't see why. And it seems to me that self-similarity is all we need to make sense of the universality of computation.
My response below. For others reading this, Erik has also since started a dedicated discussion on the topic of correspondence: https://veritula.com/discussions/is-correspondence-true-in-cr
The FoR glossary entry on self-similarity from chapter 4 reads:
self-similarity Some parts of physical reality (such as symbols, pictures or human thoughts) resemble other parts. The resemblance may be concrete, as when the images in a planetarium resemble the night sky; more importantly, it may be abstract, as when a statement in quantum theory printed in a book correctly explains an aspect of the structure of the multiverse.
The way I read that, it means the images in the planetarium correspond to the night sky. Otherwise we wouldn’t consider them similar.
From chapter 6, on the universality of computation and how “various parts of reality can resemble one another”:
The set of all behaviours and responses of that one object exactly mirrors the set of all behaviours and responses of all other physically possible objects and processes.
That means there is one-to-one correspondence between the behaviors and responses of the first object and those of all the other objects. This is basically another way to describe the self-similarity property of the universe.
From chapter 10, in the context of mathematics (italics mine):
… the physical behaviour of the symbols corresponds to the behaviour of the abstractions they denote.
(The same is true of the physical parts of a Turing machine harnessing the self-similarity property of the universe to correspond to other physical objects.)
From chapter 14, in the context of the creation of scientific knowledge (which, AFAIK, DD views as increasing correspondence):
The creation of useful knowledge by science … must be understood as the emergence of the self-similarity that is mandated by a principle of physics, the Turing principle.
It’s been ages since I read FoR so I’m relying on word searches in the ebook but it’s full of these links between self-similarity and correspondence.
Thanks. Do you think there's correspondence for abstractions as well (such as mathematics, as DD seems to suggest)? As I understood, you only think we need it to explain progress in science.
#2378·Benjamin Davies revised 19 days ago“Bitcoin is not backed by anything” can also be stated as “Bitcoin is not redeemable in anything”.
“POW” or “computational work” or “encryption” are not things you can redeem if you own bitcoin.
This is in contrast to gold-backed currencies, for example, which are currencies which can be redeemed in gold. The United States Federal Reserve Note only became fiat when it was no longer redeemable in gold.
In a gold standard society, gold doesn't need to be backed by anything. The same would be true for Bitcoin and Zcash.
#2032·Erik Orrje, about 1 month ago@dennis-hackethal, could you expand your argument in Lucas' blog post that self-similarity must entail correspondence?
See here. Lucas had asked:
Can you say more about why we need correspondence to make sense of the concept of self-similarity? I don't see why. And it seems to me that self-similarity is all we need to make sense of the universality of computation.
My response below. For others reading this, Erik has also since started a dedicated discussion on the topic of correspondence: https://veritula.com/discussions/is-correspondence-true-in-cr
The FoR glossary entry on self-similarity from chapter 4 reads:
self-similarity Some parts of physical reality (such as symbols, pictures or human thoughts) resemble other parts. The resemblance may be concrete, as when the images in a planetarium resemble the night sky; more importantly, it may be abstract, as when a statement in quantum theory printed in a book correctly explains an aspect of the structure of the multiverse.
The way I read that, it means the images in the planetarium correspond to the night sky. Otherwise we wouldn’t consider them similar.
From chapter 6, on the universality of computation and how “various parts of reality can resemble one another”:
The set of all behaviours and responses of that one object exactly mirrors the set of all behaviours and responses of all other physically possible objects and processes.
That means there is one-to-one correspondence between the behaviors and responses of the first object and those of all the other objects. This is basically another way to describe the self-similarity property of the universe.
From chapter 10, in the context of mathematics (italics mine):
… the physical behaviour of the symbols corresponds to the behaviour of the abstractions they denote.
(The same is true of the physical parts of a Turing machine harnessing the self-similarity property of the universe to correspond to other physical objects.)
From chapter 14, in the context of the creation of scientific knowledge (which, AFAIK, DD views as increasing correspondence):
The creation of useful knowledge by science … must be understood as the emergence of the self-similarity that is mandated by a principle of physics, the Turing principle.
It’s been ages since I read FoR so I’m relying on word searches in the ebook but it’s full of these links between self-similarity and correspondence.
#2399·Zelalem MekonnenOP revised 19 days agoFinding problems that a knowledge addresses is a form of new knowledge.
Maybe not. Figured that out as I was typing. The knowledge isn't new.
a knowledge
I don’t think it’s correct to use the word ‘knowledge’ with an indeterminate article (meaning ‘a’ or ‘an’).
You could say ‘Finding problems that some knowledge addresses…’
#2404·Dennis Hackethal revised 19 days agoAt the same time, there is a notion that I want to address that flows from fallibilism, and the reason decentralized 'things' tend to be more truth seeking. Even though a given knowledge has solved problems we haven't yet discovered, we still got that solution by solving a problem we encountered, and we can't solve problems we haven't encountered. When we try to solve a problem, we might find out that we've already solved it, but that only happens after we have looked at the problem.
Superseded by #2395.
Recovering this version
At the same time, there is a notion that I want to address that flows from fallibilism, and the reason decentralized 'things' tend to be more truth seeking. Even though a given knowledge has solved problems we haven't yet discovered, we still got that solution by solving a problem we encountered, and we can't solve problems we haven't encountered. When we try to solve a problem, we might find out that we've already solved it, but that only happens after we have looked at the problem.
At the same time, there is a notion that I want to address that flows from fallibilism, and the reason decentralized 'things' tend to be more truth seeking. Even though a given knowledge has solved problems we haven't yet discovered, we still got that solution by solving a problem we encountered, and we can't solve problems we haven't encountered. When we try to solve a problem, we might find out that we've already solved it, but that only happens after we have looked at the problem.
Presumably, Zelalem wanted to delete the idea. Veritula purposely doesn’t have that functionality. In the future, Zelalem, just leave the idea and criticize it for being outdated or superseded or whatever reason you have for rejecting it.
#2395·Zelalem MekonnenOP, 19 days agoAt the same time, there is a notion that I want to address that flows from fallibilism, and the reason decentralized 'things' tend to be more truth seeking. Even though a given knowledge has solved problems we haven't yet discovered, we still got that solution by solving a problem we encountered, and we can't solve problems we haven't encountered. When we try to solve a problem, we might find out that we've already solved it, but that only happens after we have looked at the problem.
When we try to solve a problem, we might find out that we've already solved it, but that only happens after we have looked at the problem.
That still means we solved the problem before we encountered it.
I understand you want to stress that we usually solve a problem after we identify it. Your text already covers that. So I’d still just remove the sentence “We can't solve a problem we haven't encountered yet.” because it’s not true.
#2392·Zelalem MekonnenOP, 19 days agoI think the 'therefore' means that the following point is a direct result of the preceding claim.
Right and it’s not.