Bitcoin does not exist outside of modern technology. It’s very existence relies on the internet. But the internet isn’t some nebulous thing that exists in a void outside of human economy. So there’s a fundamental cost in a currency other than bitcoin that must be paid in that other currency before the bitcoin transaction may take place. In the language of Econ, Bitcoins transaction costs include interacting with another (more broad) currency. The value of bitcoin then will, must always be dependent upon another currency. Hardly seems the Libertatian panacea that it’s made out to be.
As for Krugman and predictions, one never makes a prediction without a hearty dose of humility. Predictions are the playthings of fools. Believe me, he knows that. But predictions still produce clicks and views.
I got into btc in 2013 because I could plug a box into a wall and in generated value that I could then use to make purchases. There are people that exist entirely in the crypto economy and did not put cash in or out. BTC is a drop in the bucket compared to other securities in the world, but your premise of that it has to exist on other currencies isn't true in my view.
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Bitcoin does not exist outside of modern technology. It’s very existence relies on the internet. But the internet isn’t some nebulous thing that exists in a void outside of human economy. So there’s a fundamental cost in a currency other than bitcoin that must be paid in that other currency before the bitcoin transaction may take place. In the language of Econ, Bitcoins transaction costs include interacting with another (more broad) currency. The value of bitcoin then will, must always be dependent upon another currency. Hardly seems the Libertatian panacea that it’s made out to be.
As for Krugman and predictions, one never makes a prediction without a hearty dose of humility. Predictions are the playthings of fools. Believe me, he knows that. But predictions still produce clicks and views.
Edit-
One might liken bitcoins value through Greshams law (https://en.m.wikipedia.org/wiki/Gresham%27s_law ).
I got into btc in 2013 because I could plug a box into a wall and in generated value that I could then use to make purchases. There are people that exist entirely in the crypto economy and did not put cash in or out. BTC is a drop in the bucket compared to other securities in the world, but your premise of that it has to exist on other currencies isn't true in my view.