Economics 101

Discussion in 'Toke N Talk' started by Finshaggy, Apr 3, 2016.

  1.  
    Finshaggy

    Finshaggy Well-Known Member

    Currencies, both fiat and crypto, don't actually contain any value they simply represent value. They are called Trade Instruments, meaning, instruments that facilitate trade. Stocks are an example of trade instruments that aren't money, they have no actual value but they represent a share of a company and the company itself does the work that turns the profits that gives a share its theoretical value. All trade Instruments work along the same lines: Fiat is traded by banks and Foreign Exchange companies, Stock is traded on Stock Exchanges such as the New York Stock Exchange and Cryptocurrencies are traded on various Cryptocurrency Exchanges. All of their values are representations of real things, for example Stocks Represent created and distributed goods and services by a particular company, while fiat currency represents created and distributed goods and services of a nation. Both change based on industrial/technological/
    scientific/developmental/etc. advancements within those companies or nations, as well as various factors such as trade volume and inflation. It is best to trade your trade instruments at the highest value possible and use them to buy real items, such as: Precious metals, Livestock, Software, Machines, Produce/Seeds, Land, Realestate, etc and then use those to get more trade instruments.

    Trade volume is how many people are buying and selling a particular currency or stock. The more people who are buying it, the higher the value will rise.

    An example of Inflation is when the United States starts printing too much money. When this happens a dollar starts being worth less, which in turn means it will take more money to buy the same materials. For instance, if you go to the store and one day Milk is $3/Gallon but then you go a few months later and notice it is $5/Gallon, this is because of inflation. Inflation also drives things like the minimum wage and social security checks, which are usually based on the cost of living. Cryptocurrencies with no cap will eventually inflate into eternity and lose value, unless they have a high trade volume.

    Supply and Demand is the comparison of how many people want something against how many their are of that thing. For example, when Apple creates a new IPhone the value is higher than it really should be and as the technology slightly or drastically ages, the value goes down.

    A Whale is a person who has a large quantity of a certain trade instrument and uses that to effect the markets. For example, if someone has 51% of a particular stock they could either sell them all quickly which would bring the value of that stock down, or they could hold on to all of them which makes them more rare and makes them more valuable.

    Bubbles are when something is artificially high in value, 2 examples of this are: IPhones as mentioned before, and Gasoline. Gasoline raises in value based simply on the speculation that "one day we might run out", this creates bubbles which raises prices. But Gasoline will probably be replaced by ethanol before it ever even gets close to being used up.

    Look at different exchanges- Sometimes you can get more on one site than you can on another site, for the same coins. And sometimes you can even buy coins on one site and sell them on another site for more. This works better when you are trading Crypto to Crypto rather than Crypto to fiat.

    Use coins to create goods and services- Don't just use coins to buy random things, buy software and other goods that you can use to produce things or spend them on things like textbooks. Create a product if you can.

    Create a currency- Satoshi gave out the Bitcoin source code so that people could make their own currencies.

    Create an exchange- Transaction fees can earn the owners a lot of coins and you can help fledgling altcoins by offering them on your exchange.

    Don't buy above spot- If you are trading coins for precious metals, check the current global value of that metal and buy as close to that value as you can.

    Invest in foreign countries- Don't think America is the be all end all.
     
    Rob Roy and reddan1981 like this.
  2.  
    reddan1981

    reddan1981 Well-Known Member

    daily bowel clearance, thankyou for the read.
     
  3.  
    KLITE

    KLITE Well-Known Member

    Go back to Mexico before they build the wall on you.
     
  4.  
    a senile fungus

    a senile fungus Well-Known Member

    Lol, I had just remarked about Fin's cogency in his other thread.

    That'll teach me...
     
  5.  
    bluntmassa1

    bluntmassa1 Well-Known Member

    So if I put everything into crypto currency and suddenly we have a insane solar flare take out the power grid and satellites how much will crypto currency be worth??

    Oh never mind just as much as fiat currency would be nothing!! Maybe gold and silver might be a safer investment other than land which is the best investment because we ain't making anymore once we send man to Mars precious metal won't be as precious but liveable farmable land will always go up in price no matter what currency.
     
    curious2garden and srh88 like this.
  6.  
    Eltomcat

    Eltomcat Well-Known Member

    I just took a fat shit.
     
    srh88 and bu$hleaguer like this.
  7.  
    mr sunshine

    mr sunshine Well-Known Member

    Here's 5 more cents fin.
     
  8.  
    DblBrryInvestments

    DblBrryInvestments Well-Known Member

    Economics 102* Macro comes after Micro. :fire:
     
    Unclebaldrick likes this.
  9.  
    Unclebaldrick

    Unclebaldrick Well-Known Member

    The grim art of economics is no place for dabblers Fin.
     
    mackdx and curious2garden like this.
  10.  
    ovo

    ovo Well-Known Member

    Eltomcat likes this.
  11.  
    Chunky Stool

    Chunky Stool Well-Known Member

    Economics is mostly voodoo.
    Economists disagree more than hardcore religious zealots.
    Seriously. It's smoke & mirrors.
     
    srh88 and Singlemalt like this.
  12.  
    Eltomcat

    Eltomcat Well-Known Member

  13.  
    Finshaggy

    Finshaggy Well-Known Member

    You can make a Crypto currency, and then ask different websites to start accepting your currency for Copper, Silver, Gold, etc. and you can launch the coin as a Precious Metal trading coin, which may start trading of Precious Metals around it before a website like that picks up the coin.

    So you can literally create a liquid currency, and trade it for a solid asset.
     
  14.  
    Finshaggy

    Finshaggy Well-Known Member

  15.  
    Iloveskywalkerog

    Iloveskywalkerog Well-Known Member

    Would you just shut the fuck up already ? No one gives a fuck about bitcoins, I thought it was funny a few days ago, but now you're just becoming an annoying, copy & pasting ass., Are you being serious ? Or are you just being a troll ? Please answer that question honestly. @Finshaggy

    In all seriousness, what are you trying to accomplish with this Wikipedia information ?
     
  16.  
    LargeMarge

    LargeMarge Well-Known Member

    @Finshaggy I think you should make videos, your posts are way too long to read.
    Ain't nobody got time for that shit.

    Edit: I got time but CBF.
     
    reddan1981 and SunnyJim like this.
  17.  
    Unclebaldrick

    Unclebaldrick Well-Known Member

  18.  
    eye exaggerate

    eye exaggerate Well-Known Member

  19.  
    Unclebaldrick

    Unclebaldrick Well-Known Member

    Such a silly statement. Economics is a way of quantifying human behavior. That's all. It is more sociology than anything and is a better model of predicting human behavior than anything else I am aware of.
     
  20.  
    curious2garden

    curious2garden Well-Known Member

    Actually that's a plus rep sort of statement, very elegant and eloquent and so early in the morning too! I did not see that coming, good one.

    PS I'm starting to draw the conclusion Fin's jail did not give him access to the 'net.
     
    cannabineer and Unclebaldrick like this.

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