I haven’t actually applied any serious economic analysis to the problem, but I’m very suspicious of the fact that Moldbug’s argument not only uses but actually relies upon a feature of Bitcoin that would serve as an obstacle to its use as a major currency, viz. the relative rarity of bitcoins. Unless there’s a highly robust way to trade in fractional bitcoins that I’ve never heard of, that puts an effective—if soft—upper bound on the currency’s total value.
ETA: Okay, apparently fractional bitcoins can be traded. This is less of a problem than I originally thought.
I haven’t actually applied any serious economic analysis to the problem, but I’m very suspicious of the fact that Moldbug’s argument not only uses but actually relies upon a feature of Bitcoin that would serve as an obstacle to its use as a major currency, viz. the relative rarity of bitcoins. Unless there’s a highly robust way to trade in fractional bitcoins that I’ve never heard of, that puts an effective—if soft—upper bound on the currency’s total value.
ETA: Okay, apparently fractional bitcoins can be traded. This is less of a problem than I originally thought.