1/ Check out this interesting conversation between @_nirajshah and Professor @AswathDamodaran.
‘If there is one thing the crypto currencies are, they are not simple’ concludes @_nirajshah gallantly.
‘If there is one thing the crypto currencies are, they are not simple’ concludes @_nirajshah gallantly.
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2/ By making that statement, @_nirajshah inherently assumes that central banking, free float exchange system and FIAT money creation are simple and well understood by the Average Joe leading to its high acceptance and usage.
3/ Nothing can be farther from the truth. Not more than 1% of the world population would understand the nitty-gritty of how FIAT money works. (Hint: It doesn’t)!
4/ Professor @AswathDamodaran believes Swiss franc is a great store of value and MOE whereas #Bitcoin isn’t. Respectfully disagree with you sir. But in the last half a decade, Swiss franc is down 4% against USD and BTC is up 6800% against USD.
5/ Sir, Bitcoin’s chances of fetching you lunch in Mumbai is far superior than it is with Swiss Franc
6/ Professor also believes that BTC can serve either as a speculative investment or a currency but not both. Disagree! Every currency has two types of demand - speculative and transactional. Magnitude of the former is higher given the fact that #BTC is hardly a decade old.
7/ Speculation leads to value discovery. MOE follows value discovery. Credit card made its debut in India in 1981. A good 3 decades after it was launched in USA. No one would have succeeded buying lunch with credit card in Mumbai in 1960s
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