Hu₿ertus the Austrian on nostr

Buckminster Fuller is unsound economics, his energy theory has a similar mistake as Marx’s labour theory of value.

Labour input does not determine value. You can dig a pit for hours, and it may not have value. Spend more work on closing it again. Less value if there ever was.

Energy input does not determine value. You can spend 1 or 100 kWh in electricity on a room where nobody lives, and there is no value.

Fuller conflated cause and effect.

If people economise on energy because it comes with a price then a richer economy will likely use more of it. Not the other way round. It’s not a driver but an indicator to be used with caution.

Hu₿ertus the Austrian

@hubertusVIE 1776578300

On the Misconceptions of Deflation in Bitcoin
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Bitcoin is NOT ‘deflationary’, my Bitcoiner brothers.

That’s utterly, totally wrong.

Let’s get our economics straight.

Deflation is when the money supply does not keep up with the money demand. That’s the definition. No more, no less.

1. There is constantly supply added to the stock of Bitcoin. That’s not deflation, clearly. .

2. Prices falling because of technical progress? That’s not deflation, that’s productivity growth.

3. Exchange rate of Bitcoin rising? Not deflation. It’s the fiat currency’s inflation due to oversupply.

4. Obviously the exchange rate of Bitcoin can be falling at times. Clearly not deflation anyway but neither inflation.

Deflation is an undersupply of the economy with money. It’s the supply chains grinding to a hold because something or someone strangulates the money supply. Goods don’t move, lose value, spoil.

Deflation can have all kinds of price effects at different stages from when the disequilibrium started. It is however, always a most destructive force in the real economy causing unemployment and poverty.

Don’t desire to live to see it at work.

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Hu₿ertus the Austrian

@hubertusVIE 1776493974

Bank’s demand deposits, gold custodied for convenience, enabled re-hypothecation. I think it was foolishness, laziness, the first step to the fraud which brought us the corrupt fiat money.

El Flaco · 1w

Published: "Building a Bitcoin Circular Economy: Five Spectrums You Have to Navigate" Five years of learnings from Blink, Adopting Bitcoin, and OpenMMLN distilled into one piece. Custodial <> Self-C...

Hu₿ertus the Austrian @hubertusVIE 1776493865

Great piece. Lots to agree with.

Part of the tradeoffs will improve now that we are getting close to what Hal called ‘banks’.

Today, we only have half the solution, Bitcoin for base money. Storage of value.

We’re getting close to the missing half. The invisible part of the iceberg out of sight. The 90% which does the heavy lifting in the real economy, credit money. It takes care of spending. Transacting real value.

Saving and spending will both be equally rational. Both have their role.

The missing layer will enrich one tradeoff in the article with a new but crucial nuance.

Not custody, not self-custody.
Non-custody.

It safeguards inviolable property rights, while allowing us to put Bitcoin to work in the real economy: verifiable finality of credit transactions.

Hu₿ertus the Austrian

@hubertusVIE 1775737402

In our geopolitically tumultuous times, even governments now see the wisdom in using Bitcoin instead of some hostile fiat money.

Note that Bitcoin is already showing its mettle as the ideal money for international trade.

The newsletter of @BTCprague reports:

“Iran would impose a $1-per-barrel transit toll on oil tankers passing through the Strait of Hormuz, only payable in Bitcoin. so funds can't be confiscated."

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jack · 3w

bitchat pulled from china app store https://blossom.primal.net/6d1f5304a85f6ccd6af01a7db43da50688636822df7a38af31ef5f66457c6b77.png

Hu₿ertus the Austrian @hubertusVIE 1775484233

Ultimately freedom tech is not enough.

To regain political freedom, we must meet authoritarian politicians in open battle, at the urn. As long as there still is urns.

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David A. Harding · 3w

What's a bill of exchange? I wasn't able to figure it out from context. What's the complication that prevents the use of 1 hop credit systems, e.g. I give my wife $1000 in open credit that she can spe...

Hu₿ertus the Austrian @hubertusVIE 1775461576

“What’s a bill of exchange?” you ask?

The Bill of exchange is a peer-to peer credit instrument freely issued between merchants, proven for centuries, before intermediated fiat banking was pressed onto us by law.

Trade and higher order production cannot not run on money, it runs on self-liquidating credit.

Remove it, and the real economy breaks down. Or, as in the case of Bitcoin, trade and production are prevented from adopting Bitcoin as a finality asset.

Bills are private credit issued ‘against value’, goods in the supply chains of the real economy. Bills are negotiable, non-fungible, non-divisible, ‘raw’ credit money. The goods are ‘proof-of-work’, or more correctly: savings by the creditor.

Without value, credit money is just out of thin air, unbacked fiduciary media.

PS: Regarding ‘open credit’ two important matters:

1. If you hold sats, that credit fine, it’s not ‘real credit’, it’s just a plain loan.

2. If you intended a negative LN balance (which I trust you do not) that’d be inflationary, like a demand deposit in fiat banking.

Hope that clarifies.

Toxic Bitcoiner · 3w

Why not equity instead of credit? Re: Saylor vs Saifedean. I’m with Saifedean: there will still be *some* credit, but far less than there is today, with some of the difference made up for with equit...

Hu₿ertus the Austrian @hubertusVIE 1775457576

If you want to understand the debt to equity difference: it is in the nature of the institution.

Equity requires knowledge, involvement, and a high level of attention.

With debt you can economise knowledge and time, it can even be used to use money of widows and orphans.

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