- Linus Torvalds, creator of Linux, does not believe in cryptocurrencies, calling them a vehicle for scams and a Ponzi scheme.
- Torvalds was once rumored to be Bitcoin creator Satoshi Nakamoto, but he clarified it was a joke and denied owning a Bitcoin fortune.
- Torvalds also dismissed the idea of technological singularity as a bedtime story for children, saying continuous exponential growth does not make sense.
for the vast majority of the history of money it was based on a commodity that was valuable in its own sense.
True, but using grain or tools as a currency would make the modern financial system pretty much impossible. Even for simple banking, you need something small and light like gold or currency notes.
What if it was so small and light it was only electrons? And what if it accrues its value from the energy expended to create it? Maybe using some sort of cypher to ensure anyone could verify it? Idk maybe we’re onto something…
then again it still syphons value to the top so maybe not…
What if it was so small and light it was only electrons?
You mean, like how it is now?
And what if it accrues its value from the energy expended to create it?
You want more climate change? Also, value comes only from what someone else is willing to exchange for it.
Maybe using some sort of cypher to ensure anyone could verify it?
Why should anyone else be able to know anything about a transaction between A and B?
Gold is a commodity and you can create a currency that is backed by a commodity so you aren’t actually trading the commodity itself.
Yes, gold is a commodity, but when used as currency it is acting as a medium of exchange and not as a commodity. Same with pieces of paper with the sign of the reserve bank governor, or data on a computer’s memory. The gold, paper and hard disc all have intrinsic value, but when used as currency they are assigned an arbitrarily higher face value.
When you have commodity money, the value of the money is derived from the value of the commodity. You don’t get to assign arbitrarily higher values to the money because the market determines the value. But yes, all speculative assets typically have a higher extrinsic value compared with their intrinsic value but I don’t believe that has anything to do with it being a medium of exchange or not. That is just supply and demand.
