> However, crypto represents a divergence entirely from a Keynesian worldview in that it has created this bizarre simulacrum of markets with all the trappings and veneer of finance but which has no pretense of being tethered to the economic problem at all. No goods, services or resources are being exchanged. Crypto is a Keynesian beauty contest for zero-sum get-rich-quick schemes. I call it the nothingness game, a bizarre contest in which participants continuously punt on get-rich-quick schemes for lumps of nothing based on their perception of which lump of nothing others believe is the most attractive.
What a bizarre argument. Keynes wrote in the 1920s and 30s, so according to Diehl, did economics and finance not exist prior to Keynes? Was it all just a simulacrum until Keynes showed up and whipped out his General Theory? The map is not the territory.
This isn't even factually true. Crypto is in fact used in the real economy of places that have such bad monetary systems that crypto is much more stable. Look at Venezuela or even Ukraine and how much crypto is used there because the formal financial system is shambolic.
Crypto scams may be more common in the developed world where formal institutions are decent enough that the marginal cost of using crypto in the real economy is just too high compared to the legacy financial system.
The US dollar is pretty much the de facto currency of places where the official currency is unstable/distrusted. Places like El Salvador made a big deal of adopting Bitcoin, but it was mostly smoke and mirrors.
Moving dollars in and out of authoritarian or war-torn countries isn't trivial. That's why I mentioned Venezuela and Ukraine.[0] Russia itself also has a significant crypto economy. None of this is to say there isn't demand for dollars in those places, just that supply of dollars is not exactly abundant. Thus, they go to crypto.
What a bizarre argument. Keynes wrote in the 1920s and 30s, so according to Diehl, did economics and finance not exist prior to Keynes? Was it all just a simulacrum until Keynes showed up and whipped out his General Theory? The map is not the territory.
This isn't even factually true. Crypto is in fact used in the real economy of places that have such bad monetary systems that crypto is much more stable. Look at Venezuela or even Ukraine and how much crypto is used there because the formal financial system is shambolic.
Crypto scams may be more common in the developed world where formal institutions are decent enough that the marginal cost of using crypto in the real economy is just too high compared to the legacy financial system.