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Joined 2 years ago
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Cake day: July 14th, 2023

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  • Not crypto. Just digital. So, centralized, subject to anti-fraud regulation, reversible transactions, etc.

    Not loaned out. Explicitly marked as not-loanable. Which would be foolish in today’s market, because you’re losing out on a dividend. Except… the bank actually keeps most of the benefit from your deposit being loanable normally. This way, you get the benefit instead.

    Basically, it allows depositors to compete against the banks. So they can’t take you for granted, because you actually have alternative.








  • The original source was much more sensible.

    The comparison makes sense for evaluating whether you’re over-invested in something. Like, if Nvidia suddenly poofed out of existence, would it seriously be worth 16% of everything the whole country makes in a year to get it back?

    Owning a car that’s worth 16% of your yearly income sounds reasonable, no matter what your actual income is. A Pokemon card collection that’s 16% of your income is probably too risky, no matter what your actual income is.

    Also, GDP is a decent scale to use for charting investment in a productivity tool, because if GDP ramped up at the same time as investment then it looks less like a bubble, even if they both ramp up quickly.

    But that’s not what we see. We see a sudden and volatile shift, nothing like the normal pattern before the hype.