tag:blogger.com,1999:blog-6704573462403312459.post9110217743133551076..comments2024-03-29T02:53:03.321-04:00Comments on Moneyness: Classifying cryptocurrenciesJP Koninghttp://www.blogger.com/profile/02559687323828006535noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6704573462403312459.post-21137319830746634202019-08-25T13:14:22.189-04:002019-08-25T13:14:22.189-04:00Hi JP, really like your blog. Just discovered it.....Hi JP, really like your blog. Just discovered it....<br />one comment.. i would challenge that derivatives is a zero sum outcome... In the academic literature as well in practice any practitioner can replicate the opposing "hedge" so as to replicate the expected/actual payoff...Stradivariushttps://www.blogger.com/profile/08337148208169215910noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-17866024762636775942019-07-28T20:20:28.607-04:002019-07-28T20:20:28.607-04:00I disagree with the statement "Sure, the supp...I disagree with the statement "Sure, the supply of cryptocurrencies is fixed, say like copper." The supply of cryptocurrencies is infinite. They claim they can control the amount of the crypto created, but as we have seen software forks, and even clones of code while calling it by a different name all have the effect of making crypto very much not fixed.apoptosishttps://www.blogger.com/profile/04298231566784403439noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-25882611719104921452019-07-25T14:39:17.635-04:002019-07-25T14:39:17.635-04:00Hi,But the value obtained from transaction fees ul...Hi,But the value obtained from transaction fees ultimately depends on the number of users using the bitcoin network or any other block chain network.They can move out of zero sum game only when major transactions happen through the corresponding network.Also,we can see various banks like jpmc(jpm coin) and other central banks trying to start their own crypto currencies so, I guess this should make some difference in the position of cryptos as they are backed by these banks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-68877450919146866022019-07-09T10:35:02.226-04:002019-07-09T10:35:02.226-04:00An old sailing friend sent me this photo of grandc...An old sailing friend sent me this photo of grandchildren on Yap with real hard money: https://scontent-sjc3-1.xx.fbcdn.net/v/t1.0-9/66467529_10216401367480937_6490175783074529280_n.jpg?_nc_cat=101&_nc_oc=AQmu2RMv-2ucoGAi6NV_SmbZnEDZWMh1yFHyzJ_ZyajJy5t1CS6inKDfDM6O_DB7ro0&_nc_ht=scontent-sjc3-1.xx&oh=872ce918677a5a02a734ca8f683aba3e&oe=5DBF9B26dilbert dogberthttps://www.blogger.com/profile/09637308390558302302noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-86602898405721053942019-07-06T09:24:30.951-04:002019-07-06T09:24:30.951-04:00Interesting points, Ben. I must confess I don'...Interesting points, Ben. I must confess I don't know much about proof of stake cryptocurrencies. But I am familiar with the argument you are making. I once made the same sort of argument for XRP: https://jpkoning.blogspot.com/2013/03/birth-of-currency-welcome-to-world-xrp.htmlJP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-50613583035905506102019-07-05T12:56:35.064-04:002019-07-05T12:56:35.064-04:00There is one thing that I think you have overlooke...There is one thing that I think you have overlooked: Proof of Stake cryptos that collect transaction fees.<br /><br />In a proof of stake cryptocurrency, you need coins to create blocks (the coins are not used up in the process), you can then collect transaction fees from blocks by including transactions. If people gain some real value for making these transactions (privacy, censorship resistance, etc) then that real value flows back to coin holders (even if they don't personally stake) making it a non-zero sum game.<br /><br />Of course, there is also a zero sum gambling component. Since most PoS cryptos are low market cap altcoins with low numbers of transactions, this massively overwhelms the non-zero sum component. In addition, all of the large cryptos are PoW, where transaction fees are not related to coin value.<br /><br />But if you imagine something like the ETH/DAI system where the ETH is PoS and people use DAI for a significant number of transactions that give them real value, I could see cryptos moving out of the pure zero sun game category. Benhttps://www.blogger.com/profile/12593991612781383497noreply@blogger.com