Tuesday, April 23, 2013

Crazy Train: April 16, 2013

Disconnected ramblings for the day:

  • Nobody is going to travel to Mars until a gallon of water makes it there and back. Until we build a canister that keeps those hydrogen and oxygen bonds from being blown apart by radiation, living things will be staying put.
  • Gold is "crashing" today, which means goldbugs have to figure out new rationales (and abandon old ones.) What will they be?
    • Collusion of 'powers'
    • But gold is still preferable because:
      • it's not prone to inflation/deflation (circle one)
      • people still value it for (pick any number)
        • Manufacturing.
        • "It's shiny!"
        • "History!"
        • "Rarity!"
        • Random wackadoodle econ theory
      • Insert rhetorical question
    • Bitcoin
  • Bitcoin reaches prominent discussion just as gold crashes. Why?
    • If gold crash is the result of policy decisions, then lack of central mgmt is central appeal.
    • If the crash is the result of manipulation, then Bitcoin won't experience bubbles because:
      • it can't be manipulated (see: Natural Resources)
    • Bitcoiners keep pointing at the trade price (measured in US dollars, in case anyone wondered), but I think its more important to look at what currency they convert Bitcoins TO: (answer: US dollars and apparently, drugs.)
    • The illicit trades of the world (blood diamonds, sex slaves, drugs, arms) all still use American cash. I think the dollar is still strongest. When Mexican cartels are caught with boatloads of Euros or Yuan, then I'll reexamine this.