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Merged Bitcoin - Part 3

Dr.Sid said:
So would you say the demand for gold has doubled over the last 10 years ? Because the price of gold did.
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I don't think that there is a linear relationship between demand and price. If the demand increases by 10% but the supply doesn't then this could result in a dramatic price increase. And a rapid price increase could encourage hodlers to hold on to what they have.
 
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Gold is expensive because it is being hoarded - at great expense.
The Gold Price is not determined in a Free Market way.
 
Gold is primarily used for hoarding.

And I think it is not a Free Market when single individual agents have a massively outside power over the supply or demand or both.

Free refers to equal access, information and choice, not free to do what you can.
 
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Dr.Sid said:
So would you say the demand for gold has doubled over the last 10 years ? Because the price of gold did.
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no, there’s a relationship between supply and demand and you also have to factor in inflation

in any case, just ask yourself what would happen to the price of gold if people suddenly decided they no longer want to buy jewelry. supply remains the same, demand drops, what happens to the price
 
psionl0 said:
Ah. So "free" doesn't mean "free". It means extensive government regulation (to prevent restrictive trade practices).
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And you accuse me of not having progressed past a childhood intellectual milestone!?

The idea of a "free" market is another of those over-simplified concepts economists use to make their models mathematically tractable. For example, most consumers most of the time do not have sufficient information to make an optimal choice, so we rely heavily on emotion. In fact there are studies with people with brain damage that indicate without emotion we would find it very difficult to make economic choices at all because we would end up in an endless loop of weighing pros and cons of the different options.
 
Ivor the Engineer said:
The idea of a "free" market is another of those over-simplified concepts economists use to make their models mathematically tractable. For example, most consumers most of the time do not have sufficient information to make an optimal choice, so we rely heavily on emotion.
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You are describing what economists call "perfect competition" in the market. Yes, it is a theoretical model.

Ivor the Engineer said:
In fact there are studies with people with brain damage that indicate without emotion we would find it very difficult to make economic choices at all because we would end up in an endless loop of weighing pros and cons of the different options.
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Who's studies concluded that only emotion can break an otherwise "endless loop"? Yours?
 
psionl0 said:
You are describing what economists call "perfect competition" in the market. Yes, it is a theoretical model.
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...and does not match reality in the majority of cases.
psionl0 said:
Who's studies concluded that only emotion can break an otherwise "endless loop"? Yours?
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No, not my studies. It was many years ago and my main recollection of this was seeing a woman with a brain injury that affected parts of her brain associated with processing emotions unable to choose between different brands of cans of tomatoes on a supermarket shelf. She was just stood there weighing parameters such as price, quality, quantity, taste, etc.

I've done a bit of googling and found the following:


Which is linked to from this article:

www.6seconds.org

Keeping Emotions Out of It Is Actually a Disaster

Making good decisions comes down to "being rational" and "keeping emotions out of it," right? Actually, no. According to the latest neuroscience research, it's time do away with this outdated mode of thinking and adopt a more wholesome, accurate view on emotions and decision making.
www.6seconds.org www.6seconds.org

"The roots of understanding this deep interconnection of cognition and emotion, like many breakthroughs in neuroscience, were found by studying patients with brain damage. The brain lesions these patients had suffered to a particular sector of the frontal lobe had not impacted their knowledge base or logical reasoning abilities. They understood what made a good business investment. They understood and could describe the social rules and conventions that should guide one’s actions. With any decision, they could go through the pros and cons. Yet these previously upstanding men and women struggled to make even simple decisions, and began to make disadvantageous decisions in many different aspects of their lives. Why?

It was found that what they could not do was use past emotional knowledge to guide the reasoning process. Even though they knew logically that a specific business deal was risky or that a certain decision could endanger their relationship with someone close to them, they could not access the past emotional knowledge and use that to guide the reasoning process."
 
Andy_Ross said:
Not so much a hack as old fashioned coercion and blackmail.
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i agree. they may be hackers but this wasn’t achieved via hacking.

in any case there’s some unique vulnerabilities crypto exchanges have that traditional banks do not.
 
Andy_Ross said:
Not so much a hack as old fashioned coercion and blackmail.
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No hacking at all apparently. In spite of "hackers" being in the headline, the article is about cybercriminals acquiring customer data by bribing overseas support agents. Clickbait for those who want to believe that crypto exchanges are particularly susceptible to hacking.
 
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