NPR’s Jacob Goldstein on how money is a ‘made-up thing ...

An in-depth look at what happens when you undermine utility.

I want to fully analyze the talking point that "Bitcoin is a store of value," because it's one that I see very frequently and people have different views on how the value of an asset is generated.
This one is also fun because I get to put on my Economist hat instead of my Computer Engineering hat which has always been a strong secondary interest of mine.
Please buckle in, because this is a longer read, but if you have any doubts about how value is generated, I really think it's a worthwhile one.
Other Assets that Bitcoin is Frequently Compared To
I'm going to (mostly) skip some of the more common comparisons of cryptocurrency to (Beanie Babies, Tulips, Pets.com, etc.).
I'll only briefly address it here in saying: Beanie Babies are a poor comparison because they had only had perceived scarcity in the way they were distributed so they were heavily undermined from the supply side. Tulips have a debatable history in general as far as the magnitude of purchase, and even if that history is fully accurate, their utility was only really derived from a brief social fad... not a continuing stable utility. Lastly, Pets.com is closer to being apt, except that they arguably had no major utility from the start in that it was (almost) always more expensive and slower to order through their service as opposed to going to the local pet store.
The Basis of the "Store of Value Argument
So the main argument of "Bitcoin [being] a store of value" is rooted in Bitcoin being scarce... with utility not playing a major role. The counterpoint against this view is that it takes both scarcity and utility to give a premium value to a good or service.
So let's try to separate out the two factors.
We'll first look at a good that has premium value due to both utility and scarcity where neither factor has been undermined.
Utility Plus Scarcity
We'll start by taking a look at a good that has both utility and scarcity. I think the one thing in the world that best exemplifies this status, (and my friends over at /magicTCG can attest,) is the Black Lotus. This is the mack-daddy of all Magic cards and as of this year, a mint condition version from the earliest set can fetch a six digit price point.
First, let's talk about the Lotus' scarcity: Wizards of the Coast has a strict reprint policy where no card functionally identical to the Black Lotus may be reprinted. That means with the rare exception of an undetected fake, the pool of Black Lotuses will never get larger, and in the case of damage or destruction, will certainly get smaller.
Next we'll talk about the Lotus' utility: As arguably the most impactful card in the game, anyone wanting to play Vintage format on a competitive level absolutely needs to have a Black Lotus as well as (almost) every other power-nine card. If you want to see people still playing with pieces of cardboard worth over $10,000+ each, you absolutely can. Even though these cards have utility for only a select few and the price outpaces their direct value-earning potential, the fact that they also have maintained utility means that someone will very likely be willing to purchase this card down the road at the same or higher price than the person that owns it now. Because utility is maintained, the value will continually increase.
I'm not saying this price rise will continue forever though; Something could happen to undermine the utility or scarcity of MTG cards. The pool of people playing Vintage, or MTG at all could shrink, Undetectable counterfeits could surface, WotC could suddenly change the reprint policy. Etc.
In fact, if you would like further information about the Black Lotus from an economic standpoint, I recommend listening to the Planet Money episode: The Curse of the Black Lotus
Scarcity with Shrinking Utility
What about a good that is still just as scarce as it ever was, but has experienced a reduction in utility?
The best example of this phenomenon is probably the New York Taxi Medallion. Taxi Medallions were first introduced around the great depression where less than 12,000 were made. That number has increased to somewhere in the mid 13,000 range today. Regardless, this is clearly a scarce commodity - especially with the extreme growth of NYC itself and thus, the increased demand for cabs. NYC enforced the medallion law relatively strictly for many years, but the introduction of Uber and Lyft also came with less enforcement of the Medallion law. That has caused the value to plummet. I strongly recommend two podcasts that deal with this exact topic:
The first is another Planet Money episode: "The Taxi King"
The second is a New York Times Daily titled "The Taxi Driver's Plight"
If you don't want to listen to the entirety of each episode, I think the most poignant take-away is in the Planet Money episode at timestamp 13:40:
"You can understand where the banks are coming from, they were lending Friedman money based on the rarity of the Taxi Medallions. Those precious taxi medallions. But now, if you can operate something that works pretty much exactly like a taxi without a medallion, the banks are figuring that these medallions are not worth as much as they used to be."
The banks absolutely understand that even though the rarity has not changed at all, their value is based quite heavily on their utility. With less utility comes less demand, and the price has, in response, suffered greatly.
In fact, in the update to that podcast, they note that the price of a taxi medallion is now below $200,000 and they not it doesn't look like things will be better anytime soon.
Value Requires Both Utility and Scarcity
It is pretty clear that value is not based upon scarcity alone.
I hope that users entering this space take a long look at what each cryptocurrency they are buying is useful for.
Cryptocurrencies that do the best job of maximizing their utility while remaining relatively scarce will do quite well. Cryptocurrencies that don't increase or expand their utility will certainly have their value proposition undermined.
TL;DR: Value clearly comes from both utility and scarcity. Invest responsibly.
Edit - ty for the gold, it's much appreciated. From here on out I would prefer tips as I am attempting to spur crypto adoption in my community. Now that BCH has good PoS solutions, it's great to have demo / tiny giveaway balances.
submitted by CaptainPatent to btc [link] [comments]

How to help the Nano ecosystem # 2018.11.02

Rules for the thread:
 

Chapter 1 - Basics

Upgrading the global monetary system: Nano is a deflationary digital currency that has instant transactions and zero fees: https://nanolinks.info
 

Chapter 2 - Infrastructure | Payment Gateways

 

Chapter 3 - Infrastructure | Exchanges

 

Chapter 4 - Infrastructure | POS

 

Chapter 5 - Infrastructure | ATM

 

Chapter 6 - Usability | Hardware Wallets

 

Chapter 7 - Usability | Programming and Design

 

Chapter 9 - Media

 

Chapter 10 - Social Media

Upgrading the global monetary system: $NANO is a deflationary #cryptocurrency that has instant transactions and zero fees: https://nanolinks.info
 
#money #forex #business #startup #finance #investing #trading #markets #economy #blockchain #bitcoin #ethereum #crypto
 

Chapter 11 - Other

 

Now actually choose something and do it!

submitted by laurbyteball to nanocurrency [link] [comments]

Thought this might be helpful here: a curated list of my favourite business and entrepreneurship podcasts.

There are thousands of podcasts available on the inter-webs. Finding one with high-quality content is no easy task. Here at Briefed we’ve created a list of our top favourites, in no particular order:
1. Reply All
Overview: In short, it’s about the internet. Every week they cover a new story related to the web. One week you’ll find out about the real owner of porn.com, the next how Instagram watch brands actually make money or how you can find Bitcoin hunters. You’ll get it once you listen to the podcast.
Why you should listen to it: Expert storytelling through founders, leading experts and generally A+ content.
Link: Website
2. How I built this
Overview: Produced by NPR, this is THE podcast to listen to if you want to understand how Airbnb, Instagram and even Southwest Airlines started. You’ll get to hear from the founders themselves in hour long segments.
Why you should listen to it: Do you know a billionaire who can sit down with you and explain how they started a business from scratch for a good hour? No? Thought so – this podcast is the next best thing.
Link: Website
3. Startup
Overview: Startup is all about the world of business and by Gimlet Media (a podcast media company). The first season is one of the best. You get to follow the journey of how the business was built. These guys are experts at story-telling, with the founder having worked at NPR’s Planet Money.
Why you should listen to it: Why you should listen to it: You’ll get to understand the true entrepreneur mindset and journey. Hearing how it’s like to pitch to your first investor, pitching the idea to your wife and even negotiating with your co-founder on equity.
Link: Website
4. Business Wars
Overview: A new podcast – these guys show how large companies have been in secret ‘wars’ with each other. Like Blockbuster vs Netflix or Nike vs Adidas. You get to hear what happened behind the scenes and the real story of how and why these businesses reached new heights or rock bottom – coughs Blockbuster coughs.
Why you should listen to it: Business Wars doesn’t tell us what happened – they go into the details, all the way to the unauthorised conversations between executives and the internal politics these brands faced.
Link: Website
5. How to start a startup
Overview: Sam Altman and the folks from Y Combinator offer up an amazing course in “How To Start A Startup” at Stanford. This is the full course but in Podcast form.
Why you should listen to it: Didn’t get into Y Combinator? Get knowledge from industry leaders for free. Seriously. Tonnes of gold in this one.
Link: Website
6. IndieHackers podcast
Overview: Not all businesses need $50B in investment. Okay, slight exaggeration. Still, many businesses exist from bootstrapped founders- the IndieHackers podcast interviews such people and how they acquired initial customers.
Why you should listen to it: There’s thousands of opportunities out there which don’t need huge investment. Get to hear the strategies these smaller companies use and apply them to your business today.
Link: Website
7. The Pitch
Overview: Real entrepreneurs pitch to real investors—for real money. Think of Shark Tank, Dragons Den or any other TV investment show. Now picture it in a podcast — more detail, more raw and in audio format.
Why you should listen to it: TV versions of such shows are always edited like crazy. This version shows the entire process behind the investment and pitch, understand exactly how real founders approach investors.
Link: Website
What do you guys think? Know about any other business podcasts?
Hope you found this useful!
Ali4k.
Sign-up here. for our weekly newsletter and get all the business and tech news you never knew you needed. If not, no worries – break our heart, it’s cool.
submitted by ali4k to EntrepreneurRideAlong [link] [comments]

How to help the Nano ecosystem # 2018.12.04

Rules for the thread:
 

Chapter 1 - Basics

Upgrading the global monetary system: Nano is a deflationary digital currency that has instant transactions and zero fees: https://nanolinks.info
 

Chapter 2 - Infrastructure | Payment Gateways

 

Chapter 3 - Infrastructure | Exchanges

 

Chapter 4 - Infrastructure | POS

 

Chapter 5 - Infrastructure | ATM

 

Chapter 6 - Usability | Hardware Wallets

 

Chapter 7 - Usability | Programming and Design

 

Chapter 9 - Media

 

Chapter 10 - Social Media

Upgrading the global monetary system: $NANO is a deflationary #cryptocurrency that has instant transactions and zero fees: https://nanolinks.info
 
#money #forex #business #startup #finance #investing #trading #markets #economy #blockchain #bitcoin #ethereum #crypto
 

Chapter 11 - Other

 

Hopefully subscribers start pitching in, and we'll see some comments here about it.

submitted by laurbyteball to nanocurrency [link] [comments]

I've curated a list of the best business podcasts. Hope you enjoy!

There are thousands of podcasts available on the inter-webs. Finding one with high-quality content is no easy task. I’ve created a list of my top favourites, in no particular order:
1. Reply All
Overview: In short, it’s about the internet. Every week they cover a new story related to the web. One week you’ll find out about the real owner of porn.com, the next how Instagram watch brands actually make money or how you can find Bitcoin hunters. You’ll get it once you listen to the podcast.
Why you should listen to it: Expert storytelling through founders, leading experts and generally A+ content.
Link: Website
2. How I built this
Overview: Produced by NPR, this is THE podcast to listen to if you want to understand how Airbnb, Instagram and even Southwest Airlines started. You’ll get to hear from the founders themselves in hour long segments.
Why you should listen to it: Do you know a billionaire who can sit down with you and explain how they started a business from scratch for a good hour? No? Thought so – this podcast is the next best thing.
Link: Website
3. Startup
Overview: Startup is all about the world of business and by Gimlet Media (a podcast media company). The first season is one of the best. You get to follow the journey of how the business was built. These guys are experts at story-telling, with the founder having worked at NPR’s Planet Money.
Why you should listen to it: Why you should listen to it: You’ll get to understand the true entrepreneur mindset and journey. Hearing how it’s like to pitch to your first investor, pitching the idea to your wife and even negotiating with your co-founder on equity.
Link: Website
4. Business Wars
Overview: A new podcast – these guys show how large companies have been in secret ‘wars’ with each other. Like Blockbuster vs Netflix or Nike vs Adidas. You get to hear what happened behind the scenes and the real story of how and why these businesses reached new heights or rock bottom – coughs Blockbuster coughs.
Why you should listen to it: Business Wars doesn’t tell us what happened – they go into the details, all the way to the unauthorised conversations between executives and the internal politics these brands faced.
Link: Website
5. How to start a startup
Overview: Sam Altman and the folks from Y Combinator offer up an amazing course in “How To Start A Startup” at Stanford. This is the full course but in Podcast form.
Why you should listen to it: Didn’t get into Y Combinator? Get knowledge from industry leaders for free. Seriously. Tonnes of gold in this one.
Link: Website
6. IndieHackers podcast
Overview: Not all businesses need $50B in investment. Okay, slight exaggeration. Still, many businesses exist from bootstrapped founders- the IndieHackers podcast interviews such people and how they acquired initial customers.
Why you should listen to it: There’s thousands of opportunities out there which don’t need huge investment. Get to hear the strategies these smaller companies use and apply them to your business today.
Link: Website
7. The Pitch
Overview: Real entrepreneurs pitch to real investors—for real money. Think of Shark Tank, Dragons Den or any other TV investment show. Now picture it in a podcast — more detail, more raw and in audio format.
Why you should listen to it: TV versions of such shows are always edited like crazy. This version shows the entire process behind the investment and pitch, understand exactly how real founders approach investors.
Link: Website
What do you guys think? Know about any other business podcasts?
Hope you found this useful!
Ali4k.
Sign-up here for our weekly newsletter and get all the business and tech news you never knew you needed. If not, no worries – break our heart, it’s cool..
submitted by ali4k to Entrepreneur [link] [comments]

How to help the Nano ecosystem # 2018.11.25

Rules for the thread:
 

Chapter 1 - Basics

Upgrading the global monetary system: Nano is a deflationary digital currency that has instant transactions and zero fees: https://nanolinks.info
 

Chapter 2 - Infrastructure | Payment Gateways

 

Chapter 3 - Infrastructure | Exchanges

 

Chapter 4 - Infrastructure | POS

 

Chapter 5 - Infrastructure | ATM

 

Chapter 6 - Usability | Hardware Wallets

 

Chapter 7 - Usability | Programming and Design

 

Chapter 9 - Media

 

Chapter 10 - Social Media

Upgrading the global monetary system: $NANO is a deflationary #cryptocurrency that has instant transactions and zero fees: https://nanolinks.info
 
#money #forex #business #startup #finance #investing #trading #markets #economy #blockchain #bitcoin #ethereum #crypto
 

Chapter 11 - Other

 

Now actually choose something and do it!

submitted by laurbyteball to nanocurrency [link] [comments]

Best cryptocurrency related podcast episode?

Hi All,
I have come to realize that there is nothing I enjoy more than podcasting and cryptos. Well err besides my girlfriend. I have stumbled across 3 podcast episodes related to crypto and have THOROUGHLY enjoyed them all. Do you have any episodes of a similar style that you are willing to link to feed the addiction?
 
* Reply All – The Bitcoin Hunter https://gimletmedia.com/episode/115-bitcoin-hunte
 
* Planet Money – Bitcoin Losers https://www.npr.org/sections/money/2018/01/05/576087864/episode-816-bitcoin-losers
 
* StartUp – New Money (I am in the process of listening to this one right now) https://gimletmedia.com/episode/new-money-season-6-episode-6/
 
OR maybe you can surprise me and there is a full fledged podcast about crypto. New idea?! Who's comin' with me maan?!
submitted by CryptoCasher to CryptoCurrency [link] [comments]

Would you bet on Bitcoin?

So bitcoin has been in the news recently (more than usual) with the apparent crash of MtGox, the largest bitcoin exchange in the world.
This story had me thinking because I recently heard a planet money podcast in where two economists made a wager on whether or not bitcoin would be significant within the next 5 years.
The terms:
In 5 years time, 10% of people (as polled by planet money) will have purchased something with bitcoin in the last month.
Obviously, this is meant to be informal but nonetheless it had me thinking. In light of the recent crash (or not) what do you think will be the fate of cyrpto-currencies such as bitcoin, what side of that bet would you fall on?
This question both involves economics and computer science so I thought it was appropriate for this sub
submitted by minerva330 to AskScienceDiscussion [link] [comments]

Here's the letter I just sent to Planet Money indicating that I would like to donate to their pledge drive in DOGE.

Preamble: For those of you who may not know of Planet Money, it's an NPR backed Podcast that specializes in economics. It's well respected and very popular (as in, the 10th most popular Podcast on iTunes, out of ALL podcasts). As with all NPR programs right now, they are in the middle of a pledge drive. I have offered to give them 100,000 DOGE if they put a Dogecoin address on their website.
Maybe you'd like to donate too? Maybe you'd like to let them know that you have some DOGE for them?
Email: [email protected] twitter: @planetmoney
Planet Money does amazing work, and I will probably support them regardless of whether they accept DOGE. But I do think that if we can get their interest they will realize that there's an amazing story here that's worthy of their coverage.
Dear Planet Money team,
By now you are probably aware of Dogecoin, the new crypto currency that's getting a lot of attention lately. I would like to tell you why I am personally committed to Dogecoin, and how Dogecoin may benefit Planet Money directly.
Finally, I would like to propose an experiment. Since you're in the middle of a pledge drive right now, give your listeners who use Dogecoin a chance to show their generosity. All you need to do is put a Dogecoin wallet address up on your website. If you need help figuring out how to get an address, you can read the "getting started" guide or I can personally help you out. The cost to you is nothing, except for the small amount of time it takes to put the address on your site.
If you set up a Dogecoin address and post it publicly, I will personally pledge 100,000 Dogecoins to Planet Money. Converting Dogecoin to USD is not difficult, but you may want to use some of the Dogecoins to participate in the Dogecoin economy. I bet the experience would make a fascinating podcast!
To the moon,
[my name]
submitted by chris3000 to dogecoin [link] [comments]

Planet Money: A case study in taking risk  Adam Davidson  Big Think What The Tooth Fairy Tells Us About The Rising Cost Of ... Planet Money’s Robert Smith answers our stupidest money ... An Economist Won The Lottery 14 Times By Buying Every ... NPR - YouTube

Money isn’t real, but it’s a “useful fiction” that works because people agree to believe in it. That’s according to Jacob Goldstein, co-host of NPR’s Planet Money and author of “ Money: The True Story of a Made-Up Thing.” In America, people first used coins, then went to paper money because coins were so heavy to carry. Planet Money. Summary: Money makes the world go around, faster and faster every day. On NPR's Planet Money, you'll meet high rollers, brainy economists and regular folks -- all trying to make sense of our rapidly changing global economy. Blockchain Gang : Planet Money Charlie Shrem went from living in his parents' basement, to bitcoin millionaire, to federal prison in just a few years. Subscribe to our weekly newsletter here. Listen to Planet Money episodes free, on demand. Charlie Shrem went from living in his parents' basement, to bitcoin millionaire, to federal prison in just a few years. Subscribe to our weekly newsletter here. The easiest way to listen to podcasts on your iPhone, iPad, Android, PC, smart speaker – and even in your car. For free. Bonus and ad-free content available with Stitcher Premium. Listen to Planet Money episodes free, on demand. The Bitcoin market has gone crazy. And it's revealing something strange. A lot of people can't find their Bitcoins. We go looking for lost billions. The easiest way to listen to podcasts on your iPhone, iPad, Android, PC, smart speaker – and even in your car. For free. Bonus and ad-free content available with Stitcher Premium.

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Planet Money: A case study in taking risk Adam Davidson Big Think

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