The Metaverse
toko
Well-known member
You are misunderstanding. I'm not talking about a project, I'm talking about funding projects and people trading risk generally speaking. Futures contracts provide a way for farmers and manufacturers to trade their price risks with each other or with speculators. This is a good thing. lowering the cost of exchanging risk increases economic activity and allows for good risk taking.
Clinamenic
Binary & Tweed
Well also one of the glaring problems that Bitcoin offers a solution for is inflation, by demonstrating that a supply of a currency can be predetermined in code. I don't see Bitcoin itself functioning as a currency, but I do see that this demonstration can be applied to a stablecoin, wherein inflation itself, as a policy matter, can potentially be approached with more oversight and transparency than the federal reserve board.
vimothy
yurp
vimothy
yurp
its maths!
luka
Well-known member
toko/stan, maybe this could be helpful?
www.quora.com
What is an easy way to beat your older brother in a fight?
Answer (1 of 10): Pretend you can’t take care of yourself so your parents will come to rescue poor little you. That’s the easy way. And to many kids go for it. If the bigger kid did not do anything to deserve it, it is just another kind of bullying.
vimothy
yurp
but they must both align ultimately
Clinamenic
Binary & Tweed
So if a central bank adopts stablecoin tech, the inflation rate can dependably be predetermined, and changing it would require centralized authority that may programmatically permitted only under emergency circumstances. These are just new tools to be considered. Not saying they will all prove to be more effective at monetary policy problems than the existing solutions such as they are.
toko
Well-known member
Sorry is this an argument?
Clinamenic
Binary & Tweed
Get lost!toko/stan, maybe this could be helpful?
What is an easy way to beat your older brother in a fight?
Answer (1 of 10): Pretend you can’t take care of yourself so your parents will come to rescue poor little you. That’s the easy way. And to many kids go for it. If the bigger kid did not do anything to deserve it, it is just another kind of bullying.
vimothy
yurp
theres a whole separate conversation to be had about why this is bad in theory and bad in practice
toko
Well-known member
Can you explain, just woke up and am a little slow right now and not understanding
vimothy
yurp
what is this "cost of finance" that you refer to here?
Clinamenic
Binary & Tweed
I do think you are misunderstanding my general line of argument here. I'm not advocating specific usages of decentralized database tech, I'm just saying it renders possible new fields of possibilities wherein better solutions may be found. I see it as unlocking new capabilities that may or may not prove suitable for an amazingly wide variety of potential applications.
Clinamenic
Binary & Tweed
And I'm just trying to demonstrate examples of these new possibilities, a new kind of reasoning even, not prescribe them.
toko
Well-known member
See pic related in one of my earlier replies. traditional finance has no programmatic way of ensuring computational integrity. Even regulation etc could be automated and done via zero knowledge proofs. At a high level, "costs" are associated with the need for trust
Clinamenic
Binary & Tweed
They are relevant questions, but this is also a matter of a major technical frontier where the technical solutions may precede the problems they are suited for, which is a situation where these questions are not sufficient. It becomes a matter of assessing what these solutions are good for, and if they aren't suited for existing problems, or if their marginal benefits don't warrant systematic overhauls, then they are to be shelved to revisited later.
I'd say the bulk of innovation in distributed database tech is pure innovation, but I expect applications to follow, seeing as we are only progressing into an increasingly digital world.