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PunishmentOfLuxury

A Fundamental Valuation Framework for Cryptoassets

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9 hours ago, Tinyaccount said:

The OP or the post above yours or the whole thread?

The paper is wrong, on many levels. You should get here (the first bloody page) and stop:

 

image.png.e719759c7867ccfbe173b9205492cd41.png

 

M here is reserves in reserve accounts and physical currency, that's what he means when says "base money" or M0. Then he goes on to use the term "value of currency" (!):

 

image.png.47acf527b21342966e960a60a93beb6f.png

 

In an endogenous money system the "money supply" (if such a thing could ever be clearly aggregated given the nature of money) is an endogenous process that has nothing to do with M0, or the base supply of money, as we have clearly witnessed over the past 10 years. The total supply of assets and/or liabilities which can at any time be considered and/or used as money for settling transactions in a monetary economy has little to do with M0. Then he uses the term value of currency (here he is misusing the word currency, that is physical bank noters, so we must assume he means M0 or M_something, which does not reflect at all what agents can actually use to make transactions)--"currency" has no value by definition, it is incorporeal, existing in our minds and used to craft institutions for governing social relationships (contracts). Clearly this poor ******* has no idea about the tumultuous history of defining value or of defining money, and this should be obvious to us as he's an MBA candidate--MBA's get fed neoclassical tropes all day and never question what it is they are actually doing. Good god, quantity theory of money used to value cryptocurrency?! That is nonsense, pure nonsense. I would have thrown this paper straight into the bin if I had bothered to print it. Total nonsensical rubbish. If you believe this crap I have lots of things to sell to you.      

 

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