Hacker News new | ask | show | jobs
by anonporridge 1545 days ago
This illustrates an important point to me.

First of all, money or value is a purely memetic construct. It's a grand illusion that only exists in our collective network of consciousnesses and operates as an abstraction to efficiently keep track of favors owed.

Therefore, value or money doesn't just transfer with explicit trades, as in trading $40,000 for 1 bitcoin adds $40,000 of value to bitcoin. Value also transfers memetically and invisibly, as in many people suddenly start to believe that asset B has 20% more value than asset A than it did yesterday. No explicit trade took place to create that transference of value. It's just that lots of people suddenly started believing that asset B was worth more favors that asset A. Sometimes that value is fairly easy to define, like by projected earnings of a company over the holding period of a stock. More often it's a nebulous and decentralized calculation of the market.