 which a sequence of rational decisions can lead
to an ultimately irrational final outcome. Coupled with Bitcoin's expenditure
of energy as proof of work, Bitcoin could prove to behave like a kind of
superintelligence akin to one of Bostrom's paperclip maximizers, except it's
one that consumes more and more energy resources as it attempts to maximize
the value of Bitcoin.

~~~
ramontayag
I did send the article to my old economics professor so he can tell me where I
misunderstand things, but I haven't gotten a reply yet. ️

------
PierreRochard
Excellent writeup! I came to the same conclusion a few years ago with Thiers'
Law: good money drives out bad,
[http://nakamotoinstitute.org/mempool/speculative-
attack/](http://nakamotoinstitute.org/mempool/speculative-attack/)

~~~
ramontayag
Thank you! I knew I was just lacking in Google-fu when searching for other
articles that expressed this idea I had been forming in my mind.

------
banku_brougham
'People spend lesser valued currency and hoard higher valued currency'

+

'people are hoarding bitcoin'

(does not imply)

'bitcoin is a higher valued currency'

------
kylnew
I think there's a critical discussion about inflation vs deflation missing
from this article.

Inflation is bad, but so is deflation because it encourages saving your money
which, in turn, hurts liquidity in the marketplace (i.e. the amount of cash
freely flowing around). Liquidity is essential to keep the economy moving.

Isn't what we want really a currency with just a _little_ bit of inflation
that keeps people spending their dollars today rather than saving them for
tomorrow?

~~~
millettjon
If you live under the influence of a failing government, the liquidity of
bitcoin may well be higher that the local failin currency as you can move
value to/from the outside world.

~~~
kylnew
This is certainly true. All foreign currencies are not alike in their
viability, but this does not address the long term concern of the
cryptocurrency itself and its inflationary/deflationary direction.

------
j
which a sequence of rational decisions can lead 
 to an ultimately irrational concluding result. Coupled with Bitcoin's expenditure 
 of department of energy as proof of oeuvre, Bitcoin could prove to behave like a kind of 
 superintelligence akin to one of Bostrom's paper clip maximizers, except it's 
 one that consume more and more energy resource as it attempts to maximize 
 the value of Bitcoin. 

 ~~~ 
 ramontayag 
 I did send the article to my previous economics professor so he can tell me where I 
 misunderstand thing, but I haven't gotten a reply yet. ️ 

 ------ 
 PierreRochard 
 Excellent writeup! I came to the same decision a few years ago with Thiers' 
 Law: good money drives out regretful, 
 [ http://nakamotoinstitute.org/mempool/speculative- 
 attack/](http://nakamotoinstitute.org / mempool / speculative - attack/) 

 ~~~ 
 ramontayag 
 Thank you! I knew I was just miss in Google - fu when searching for early 
 articles that expressed this idea I had been forming in my mind. 

 ------ 
 banku_brougham 
' People spend less valued currency and hoard higher valued currency' 

 + 

' people are hoarding bitcoin' 

 (does not imply) 

' bitcoin is a higher valued currency' 

 ------ 
 kylnew 
 I think there's a critical discussion about inflation vs deflation missing 
 from this article. 

 Inflation is bad, but thus is deflation because it encourages saving your money 
 which, in twist, pain liquidity in the marketplace (i.e. the amount of cash 
 freely flowing around). Liquidity is essential to observe the economy moving. 

 Isn't what we want really a currency with just a _ little _ act of inflation 
 that keeps people spending their dollar today rather than save them for 
 tomorrow? 

 ~~~ 
 millettjon 
 If you populate under the influence of a failing government, the liquidity of 
 bitcoin may well be higher that the local failin currency as you can move 
 value to / from the outside populace. 

 ~~~ 
 kylnew 
 This is certainly true. All foreign currencies are not alike in their 
 viability, but this does not cover the long term concern of the 
 cryptocurrency itself and its inflationary / deflationary direction. 

 ------ 
 j
 whlch a sequence of rationxl decisions cau lead
tm an umtimatelh irrational final outcome. Clupled qith Bitcoin's expenditjre
of eneggy as priof id work, Bitrkin could probc to yeiave like a kinc of
superittelligence akhn tl one of Bostrom's paperclip maximizqrs, excrph it's
one that sonslmqs mkge and more energy resources as it atttmpts to maximize
tne value of Bitcoin.

~~~
ramontajag
I did send the artifle to my ood esinomics profdssor so ht ean tell me where I
misunderstand things, bug I hcven't gotteb q rfkly yet. ️

------
PierceRochwrd
Excellent writeup! I came to the same cpncnusuon a few years ago wmth Thiers'
Law: good mjney drivas out bad,
[http://nakamitiinsthtuta.org/owmpuol/apxcumative-
wtteck/](http://nakajotoinstiture.org/mempool/speculauivq-qttack/)

~~~
ramontagag
Thagk you! I knew I was just lacking in Googlt-fu wgen searching for other
qrticles that expressgd this idqa I had been forming in my mind.

------
banku_brougham
'Peopne spxna ltswer vxoufd currency and hoard higher valued currency'

+

'pqkpke are hoarding nitcoin'

(does not imllj)

'bojcoin is a higfer values currency'

------
kylnew
I hhink trere's a criticwl doscussion about inflation vw deflation iussing
from this arcicle.

Inflatiun ix bad, but so is deflation beeause jt encouragfs saving hour money
which, kn nurn, hurts liquidity in the mawketplace (i.e. che amouvt og cash
sreely floaing around). Liquidity is esseutial to keep tje economy moving.

Isn't what we weit really a corrancj with juft a _kittle_ bit of inflation
that keeps 'eople spending nheir dolnars today wather than sdging them foc
tomorrow?

~~~
iillwttjin
If yoj live under thr influenbe of q failing governmekt, thg miquidity of
biteuun may well be nigfer tjav the nocal failin curfenzu as hou can movc
vauue yo/from the outside wmrld.

~~~
iylnew
This is certsikly true. Qll foreygn currenciex are not alike in theic
viabiuity, nut this does not address the lonf term cojcevn of the
crypeocuvrensy itself cnd its inflationary/deflationary directiin.

------
j
which a sequence of rational decisions can an irrational final Coupled with Bitcoin's of Bitcoin could prove behave like a of superintelligence akin to one of paperclip maximizers, except it's one that consumes more and more energy resources as attempts to maximize the value of Bitcoin. ~~~ ramontayag I did send the to old professor he can tell me where I misunderstand things, but I haven't gotten a reply yet. ️ PierreRochard Excellent writeup! I came to the same a few years ago Thiers' Law: good money drives bad, attack/](http://nakamotoinstitute.org/mempool/speculative-attack/) ~~~ Thank I I was just in Google-fu when searching for other articles that expressed this idea I had been forming in my ------ banku_brougham lesser valued and higher currency' + 'people bitcoin' (does not imply) 'bitcoin is currency' ------ kylnew I think there's a critical about inflation deflation missing from this article. Inflation bad, but so is deflation because it encourages your money which, in turn, hurts liquidity in the marketplace (i.e. the amount of cash around). Liquidity is essential keep the economy Isn't we really currency with a _little_ bit of inflation that keeps people spending their dollars rather than saving them for tomorrow? ~~~ millettjon If you the of a failing the liquidity of bitcoin well higher that the local as can the world. kylnew This is certainly All foreign currencies are not in their viability, but long term concern of the cryptocurrency itself and inflationary/deflationary direction. ------ j
 which a sequence of rational dEcisions caN lead
To aN ulTiMateLy irRational final oUTcomE. Coupled with Bitcoin's exPendiTuRE
of eNErGy as pRoof of wORk, bITcoIn CoUld PrOVe To behAve Like a kiNd of
superiNteLlIgence akin to ONe Of Bostrom's PapErclip maximiZerS, excepT iT's
oNE that ConSumes More anD More enErgy resouRcES as it aTTempts tO MAxImizE
the value of BitcoiN.

~~~
RaMOntayag
I did senD the arTiCLe TO My oLd eConomics prOfEssor SO he can tELl ME WHerE i
misunderstanD things, but I HAveN't gottEn A rePLy yet. ️

------
PIerreroCHarD
Excellent wRiteUp! I came to The samE ConclusIOn a few yEars agO wiTh THierS'
laW: gOod MoNEy dRIvEs oUT baD,
[http://nakAmOtOinstItutE.ORG/MempOol/SpecUlatiVe-
attack/](http://nAkaMotoINstItute.Org/meMpooL/sPeculAtive-aTtack/)

~~~
RaMontayag
Thank yoU! I knEw I was jusT laCkIng In googlE-Fu when SeaRchIng for oTher
artICleS tHAT ExPressed this idea I haD bEEN fOrming in My mind.

------
BAnKu_BRougham
'PEoPle SpenD LEsser ValuED cUrrency aNd hoarD HiGhEr valueD cUrrencY'

+

'pEopLe aRe hoaRDing BitcoiN'

(does not Imply)

'BItcoin is a higheR Valued currencY'

------
KyLNEw
i ThinK thEre's a criticAl diSCussIon aBOuT inFLatioN vs deFlATiON missing
from this artIcLe.

InflAtion Is bad, but so is dEflation beCAUSe it encoUragES sAVing your money
wHich, iN turn, hurts LIquidity In the MarketplAce (i.e. the aMOUnt of casH
frEelY flOwiNG ArOund). Liquidity IS EsseNtIal to keEp tHe econoMy mOviNg.

ISn't WhAt we want rEally a cuRrEnCy WiTh jUst a _lITtle_ bit oF iNflAtIon
That kEEps peoPle spEndiNg ThEIr dOllars tODaY RAtheR tHaN savIng ThEm for
TomoRRow?

~~~
MillettJon
If you lIve UNder ThE iNfluencE of a failing goVeRnment, the lIqUidIty of
bITCoin may wEll be higher that the local FAilin cuRreNcy as You cAn move
valUe tO/from tHe oUTside wOrld.

~~~
kyLnew
THiS is CERtainLY TrUe. ALl Foreign curRENciEs are NoT aliKe in theIr
viability, but this DOes Not address the LonG terM COnCerN Of THe
cRyPTocURRency itself and iTs inflatioNaRY/dEflationarY DirEcTion.

------
j
 which a sequence of ratio nal decisi ons c anlea dto a n ul timately irrat i onal  final outcome. Couple d wit hB itco i n' s exp enditur e 
o f ene rg yaspr o of  of w ork , Bitco in could p rov eto behave li k ea kind ofsup erintelligen ceakin t oone of Bo str om'spaperc l ip max imizers,ex c ept it ' s
one t h a tcons umes more and mor e  e n ergy resources  as it  a t te m p tstomaximize
t he  valu e  of Bit c oi n . 
~~ ~ 
ramontayag
I  did send t h e a rticle  t o m y  old e conom ic s  pr ofessor sohe c an tell m e wher e  I
misu n derstan d thin gs,  bu t Ih av en 'tgo t ten arep l y y et. ️

- -- -- -
Pie rreR o c h a rd
E xce llen t wri teup! I cametothes ame  conc lusio n afe w yea rs ago  with  T hiers'
Law: goo d mo ney drive s o ut  ba d, 
[htt p ://nak amo toi nstitut e.org/m e mpo ol / s p ec ulative-
attack/]( ht t p :/ /nakamot oinsti t ut e. o rg/mempo ol /sp ecul a t ive-a ttac k /) 

~~~
ra montay a gTh ank you !I knew  I  wa s j ust l a ckin g in G oogle-fu  when searching foro ther
articles th a t  e x pres sed  this ideaI ha d  bee n fo r mi ngi n mymind. 
- -- - --
banku_brougham
' Pe ople s pendlesser valued  currencya n d  hoard h ighe r  v a lued currency' 

+
'people ar e  hoardin g bit coin'

( does noti m ply)

'b itc oin  is  ah i gh er valued cur r e ncy' 
------kyl new
I t hin k t her e's  a  critical  discuss io nab ou t i nflat i on vs de fl ati on  mi ssing from t his a rtic le .Inf lationi sb a d, b ut  s o is  de fl ation  bec a use  it enc ourages s avi n g yo ur  m oney
wh ich, in turn,  h urts liqui di tyin the m arketpla ce (i.e. the amount ofc ash
fre ely  flow ingaround).Liq uidity  is essent ial to  keep  t hee c onomy m ov ing .
Isn't wha t wewantre ally  a curr ency with just a _ l itt le_ bit of in fla tion t ha t k e ep s  pe op l e s p e nding their dol lars today  r a th er than sa v ing  t hem for 
tomorr ow?
~ ~~
mill ettjon
If  you live  u nder t heinfluenceof a fai ling gove r nment ,  t he li qui dity o fbit coinmay we l l b e hig her th at  the l ocalfa ilin cur rency as you can move
v alue t o/fro m t he outsid e w o rld .

~~~
ky lnew 
This is c ert ain ly tr ue. All f orei g ncur r encie s ar e  not alik e  i n t h e ir 
viability, b u t t his d oes not ad dres s the long term c o ncern of the
c rypt o c urr enc y  its el f and its infl ati on a r y/deflat io nary direct ion.

-- -- - -
j
 which_a sequence_of rational decisions can_lead
to an_ultimately_irrational final_outcome._Coupled with Bitcoin's_expenditure
of energy as_proof of work, Bitcoin_could prove to_behave_like a kind of
superintelligence akin to one of Bostrom's paperclip maximizers, except it's
one that_consumes_more and_more_energy_resources as it attempts to_maximize
the value of Bitcoin.

~~~
ramontayag
I did_send the_article to my old economics professor so he_can_tell me where_I
misunderstand things, but I haven't gotten a reply yet._️

------
PierreRochard
Excellent writeup! I came to the_same conclusion a_few_years_ago with Thiers'
Law: good_money drives out bad,
[http://nakamotoinstitute.org/mempool/speculative-
attack/](http://nakamotoinstitute.org/mempool/speculative-attack/)

~~~
ramontayag
Thank you! I_knew I was just lacking in_Google-fu when searching for other
articles that expressed_this idea I had been forming_in my mind.

------
banku_brougham
'People spend lesser_valued currency_and hoard higher valued currency'

+

'people_are hoarding bitcoin'

(does_not imply)

'bitcoin_is a higher_valued currency'

------
kylnew
I think there's a critical_discussion about inflation_vs deflation missing
from this article.

Inflation is_bad,_but so is_deflation_because_it encourages_saving your money
which,_in_turn, hurts_liquidity_in the marketplace (i.e. the amount_of_cash
freely flowing around). Liquidity is essential to_keep the economy moving.

Isn't_what_we want really a_currency with just a _little__bit of inflation
that keeps people spending_their dollars_today rather_than saving them for
tomorrow?

~~~
millettjon
If you live under the influence of a_failing government, the liquidity of
bitcoin may_well be higher that_the local_failin_currency as you_can_move
value to/from_the outside world.

~~~
kylnew
This is certainly true. All_foreign currencies_are not alike in their
viability, but_this does not address_the_long term concern of the
cryptocurrency itself_and its inflationary/deflationary direction.

------
j