Prices reflect information “In a free market economic system, prices are knowledge, and the signals that communicate information. Prices are not simply a tool to allow capitalists to profit; they are the information system of economic production, communicating knowledge across the world and coordinating the complex processes of production.”
Awesome reading, thanks Dan. I like the car analogy to describe how central banks are steering the economy, but when you say ''what if we just let the car self adjust to the conditions of the road'', it immediately raised one question from me: what kind of car do we need to that? Certainly not the traditional ones. What are the attributes such car would need to possess to do that?
Dan, thanks for this text. My latest personal revelation is how price indeed is an all-in-one clear & distilled signal about demand and else. I am also realizing that inflation and monetary supply are distorting these signals. Where could I read more about inflation in regards to price developments specifically?
Thank you Dan for this very clear description of Bitcoin's inherent monetary policy. I almost cannot imagine a world where our measuring stick of value does not change over time. Imagine how much more sound the choices we make would be! Value is such a moving target that several years ago I thought $500k for a house in my neighborhood was extravagant-- now $1 million seems cheap. Ten years ago I never would have considered buying a $60k car, but now I'm telling people "look how affordable my Tesla was!" It is enough to make anyone's head spin. Our money system makes it impossible for any person to define value for themselves. I understand how truly sound money would create a true free market where contributing value to society will be the only way to earn money-- like it will no longer be possible to sit around at JP Morgan and think up useless derivatives that look like a black box to all normal people, and become obscenely wealthy doing it. Being from a profession I consider critical to society, yet feeling significantly underpaid (our system wants more and more from doctors, for free), this concept of Bitcoin as sound money really hooked me. I am trying to make the intellectual leap to where my mind wants to go next: does sound money guarantee a world where wealth is redistributed according to actual value? Would that narrow the wealth gap to a more reasonable size? Maybe I just answered my own question!
Awesome reading, thanks Dan. I like the car analogy to describe how central banks are steering the economy, but when you say ''what if we just let the car self adjust to the conditions of the road'', it immediately raised one question from me: what kind of car do we need to that? Certainly not the traditional ones. What are the attributes such car would need to possess to do that?
Dan, fantastic newsletter, thank you for your time and insights!
Dan, thanks for this text. My latest personal revelation is how price indeed is an all-in-one clear & distilled signal about demand and else. I am also realizing that inflation and monetary supply are distorting these signals. Where could I read more about inflation in regards to price developments specifically?
Thank you Dan for this very clear description of Bitcoin's inherent monetary policy. I almost cannot imagine a world where our measuring stick of value does not change over time. Imagine how much more sound the choices we make would be! Value is such a moving target that several years ago I thought $500k for a house in my neighborhood was extravagant-- now $1 million seems cheap. Ten years ago I never would have considered buying a $60k car, but now I'm telling people "look how affordable my Tesla was!" It is enough to make anyone's head spin. Our money system makes it impossible for any person to define value for themselves. I understand how truly sound money would create a true free market where contributing value to society will be the only way to earn money-- like it will no longer be possible to sit around at JP Morgan and think up useless derivatives that look like a black box to all normal people, and become obscenely wealthy doing it. Being from a profession I consider critical to society, yet feeling significantly underpaid (our system wants more and more from doctors, for free), this concept of Bitcoin as sound money really hooked me. I am trying to make the intellectual leap to where my mind wants to go next: does sound money guarantee a world where wealth is redistributed according to actual value? Would that narrow the wealth gap to a more reasonable size? Maybe I just answered my own question!