I only said "a little more complex" and the explanations which followed clarified the matter. On the other hand, I readily grant you that, both economists and bankers like to take refuge behind obscure terms, such as Molière, to better protect their interests.
I have not read the book in question and will refrain from making a detailed judgment about it. However, if the central idea is that the banks are responsible for the crises and a refoundation of these institutions would be enough to remedy, I can only notice that it goes so well in the sense that everyone wants to hear that it will certainly be very seller!
However, banks are only one aspect of the functioning of the economy and if they have undoubtedly assumed an increasing importance (which I am perfectly aware of), it is rather because of the progressive failure of the so bad. called "real economy". Because of this, financial artifices have multiplied, not to destroy the industry, but to ensure the survival of the system (this is in no way a value judgment, but an observation) and to postpone for some time its fall. This is to such an extent that we have been able to speak of "reverse capitalism", that is to say that the injection of money into real industry no longer produces the value allowing subsequent reimbursement *; only the financial industry, through self-sustaining mechanisms, temporarily manages to continue the accumulation of abstract value.
* One detail shows it well: the industries are brought to exert more and more constraints against their employees. Thus, in China, North Korean workers, corveble at thank you and much cheaper than are now the Chinese workers, restore the profitability of the companies that employ them. There is no doubt that if the prosperity touted by the model had some substance, these working conditions would improve continually ...
Bitcoin and cryptocurrency, what's a financial bubble? Explanations in 5 minutes chrono!
Re: Bitcoin and cryptocurrency, what's a financial bubble? Explanations in 5 minutes chrono!
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Re: Bitcoin and cryptocurrency, what's a financial bubble? Explanations in 5 minutes chrono!
Christophe wrote:
I do not know if crypto currencies are part of the modern and healthy financial system that the author proposes but given the "digital revolution" of the subtitle there is a chance that it is ...
A modern and healthy financial system (sic!) Could exist .... we would then speak of thermo-economy, the problem is that such a system would be quickly assimilated to a dictatorship for our liberal societies based on the freeing of constraints ...
And of course the subprime crisis is entirely the responsibility of customers ... not banks!
The crisis of subprime was linked to several factors:
1) "The transfer of power" if I may say so between the traditional local credit houses in favor of monopoly financial entities (classic principle of selection r / K) whose objective was to maximize profits, lending everything to even insolvent people in order to recover the property after seizure in case of non-payment, the most valuable allowing the bank to win in any case ... except in times of crash!
2) A runaway real estate construction, creating a bubble. It broke when supply and demand were no longer balanced.
3) Risky behaviors induced by mortgages little looking at the possibilities of repayment of its contractors (many cases of students ... see mentally handicapped who lent more than 100 000 $!).
4) A decline in US growth caused by the peak oil peak of the 2005 / 2006 period.
All this put together resulted in the bursting of the speculative real estate bubble, largely amplified by the excessive use of CDS, in fact diffusing "toxic values" throughout the US and then the world economy.
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Re: Bitcoin and cryptocurrency, what's a financial bubble? Explanations in 5 minutes chrono!
sen-no-sen wrote:A modern and healthy financial system (sic!) Could exist .... we would then speak of thermo-economy, the problem is that such a system would be quickly assimilated to a dictatorship for our liberal societies based on the freeing of constraints ...
Yes in other words and if I understand your idea: the executioners who pretend to be victims ...
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Re: Bitcoin and cryptocurrency, what's a financial bubble? Explanations in 5 minutes chrono!
the digital revolution
In fact all cryptocurrencies do not have the same objective:
- there is the Bitcoin which targets the status of the RO with high transaction fees (it has risen to more than 20 €, much more than Visa). Bitcoin will never be a currency for the payment of every day, because it is too slow and does not hold the charge
- there are currencies that claim total anonymity (Zcash, Monero, AEON, ...). Anonymity is a way to escape wealth taxes (such as the ISF), to shun taxes on the inheritance, but it is also the preferred way of payment on the Darknet. It is untraceable like banknotes under the mattress.
- currencies for everyday payment via his phone such as Electroneum and AEON
- and trolls driven by traditional financial institutions like the Ripple. If the Ripple is needed, it is the strong returns of the banks.
In short, you have to spend time reading the forums to see it a little clearly.
In any case many of these currencies will disappear (more developers, more community) and there will remain some currencies for the functions safe haven, payment on a daily basis, anonymity.
Still, they have two challenges to overcome:
- load up to several tens of thousands of transactions per second,
- to stabilize: the delirious fluctuations of the courts are incompatible with a use by traders.
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Re: Bitcoin and cryptocurrency, what's a financial bubble? Explanations in 5 minutes chrono!
In 2018, Iceland will consume more electricity to count Bitcoins than to supply its homes
Iceland has become in a few years the paradise of companies carrying out the mining of Bitcoins, a very energy-consuming practice which consists in checking all the transactions of the blockchain. The Icelandic climate, which is very cold, makes it possible to reduce data center cooling costs. But at this rate, in 2018, the mining of Bitcoins will require more electricity than that consumed by the inhabitants of the island to heat their home.
Another example of the exorbitant environmental cost of Bitcoins. According to HS Orka, data centers destined to mine Bitcoins will consume more electricity in 2018 than 330 000 inhabitants of the island to heat their homes. They should reach 840 gigawatt hours (GWh), against 700 GWh for Icelanders.
"We are seeing exponential growth in data center power consumption and I don't see it stopping," HS Orka member Johann Snorri Sigurbergsson warned in an interview with the BBC, "if Iceland accepts all the specialized companies, there would simply not be enough electricity to supply them all ".
Soon a tax on the companies of the bicoins
In just a few years, Iceland has become a magnet for mining farms. In question: the climate. The Icelandic cold is helping companies reduce the cost of cooling data centers. Similarly, these companies can boast of renewable energy, with Iceland purchasing 100% in green energy. The project The Moonlite, which will soon be installed on the island, wants to become the largest mining center in the world, while being supplied by renewable energy.
Whether the island will remain a haven for bitcoin transaction verification companies remains to be seen. According to the BBC, Pirate Party member in the Icelandic Parliament, Smari McCarthy said: “Cryptocurrency mining requires almost no staff, very little capital investment, and generally leaves no taxes either. Iceland is zero practice ". A specific tax on these companies is therefore envisaged in the country.
http://www.novethic.fr/actualite/energi ... 45487.html
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Re: Bitcoin and cryptocurrency, what's a financial bubble? Explanations in 5 minutes chrono!
moinsdewatt wrote:In 2018, Iceland will consume more electricity to count Bitcoins than to supply its homes
Iceland has become in a few years the paradise of companies carrying out the mining of Bitcoins, very energy-intensive practice of checking all blockchain transactions.
I think this statement is false: it is not transactions (in the trading sense) that are verified when we mine but blocks of existing bitcoins ... so the more there are, the more the mining is long.
The mining is, I think, also correlated on the course in $ ... I do not know the precise algorithms used! I tried to read the white paper but I did not really understand everything moreover it only concerns the original bitcoin ... and there are many more crypto to be mined today!
If this statement were true then it would mean that stopping blockchain transactions would allow ultra easy mining: it seems absurd!
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Re: Bitcoin and cryptocurrency, what's a financial bubble? Explanations in 5 minutes chrono!
After 2 good months of modest experience in buying / selling crypto currencies, I just wrote an article that gives some "basic" advice for those who would like to get into bitcoins (but also classic stocks): https://www.econologie.com/conseils-deb ... -bitcoins/
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Re: Bitcoin and cryptocurrency, what's a financial bubble? Explanations in 5 minutes chrono!
A small article, which will please some, on the Icelandic Moonlite project, of "ecological" mining: https://www.econologie.com/projet-moonl ... -bitcoins/
Problem The capacity of the local EdF is, for the moment, insufficient
Otherwise I read that the country where the mining of bitcoins is more interesting is ... Venezuela: http://fortune.com/2018/03/07/bitcoin-m ... venezuela/ not on what it is so green there ...
And where will be the major data center mining in your opinion? In Iceland or Venezuela?
Problem The capacity of the local EdF is, for the moment, insufficient
Otherwise I read that the country where the mining of bitcoins is more interesting is ... Venezuela: http://fortune.com/2018/03/07/bitcoin-m ... venezuela/ not on what it is so green there ...
And where will be the major data center mining in your opinion? In Iceland or Venezuela?
Most expensive countries to mine Bitcoin
South Korea - $ 26,170
Niue - $ 17,566
Bahrain - $ 16,773
Solomon Island - $ 16,209
Cook Islands - $ 15,861
Least expensive countries to mine Bitcoin
Venezuela - $ 531
Trinidad and Tobago - $ 1,190
Uzbekistan - $ 1,788
Ukraine - $ 1,852
Myanmar - $ 1,983
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Re: Bitcoin and cryptocurrency, what's a financial bubble? Explanations in 5 minutes chrono!
And where will be the major data center mining in your opinion?
More data center and mining on as many machines as possible.
The real subject is the decentralization of mining. Bitcoin is suffering because of ASICs made by a few rare manufacturers. These ASICs have mined all PCs even with their graphics cards. ASICs are expensive and reserved for some customers. Their owners took control of some cryptocurrency.
Centralization = risk of minors taking control of a currency
Centralization = states can ban ASICS, ban them from customs, or require minors to have remote access to disable them.
It is not for nothing that "alt coins" as they are called do a lot to avoid centralization.
For example Monero has just announced that it will change its algorithm every month 6 to counter the ASICs farms.
The goal is that millions of people undermine and validate transactions anywhere in the world: on his PC, on his phone.
If we want cryptocurrencies to be free currencies and in the hands of citizens, we must lead the scourge to the mining industry. It is harmful for the environment (very high energy consumption), and also harmful to the decentralization that is essential.
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Re: Bitcoin and cryptocurrency, what's a financial bubble? Explanations in 5 minutes chrono!
If cryptocurrencies are to be free currencies and in the hands of the citizens, war must be waged on the mining industry.
It would be much better to free men from "citizenship" and money ...
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