Fuelled by hype and hysteria, the market in bitcoin and other cryptocurrencies went from an obscure niche to a $3tn industry. Then the house of cards collapsed
Cryptobros present bitcoin as an hedge against inflation. The best hedge against inflation is Socialism, because things are priced according to their cost of production, not by how much profit someone will make.
Commodities are sold at their cost of production in capitalism too. Profit is the surplus value that is stolen during the process rather than distributed to the worker.
No, things are priced according to supply and demand market rules. This is quite inefficient and often leaves the most vulnerable at the mercy of speculators, since they can manipulate markets to serve their needs.
Look at the price of oil. Its production costs have remained stagnant in the past years, yet its price has suffered heavy fluctuations. This is what happens in the absence of economic planning.
Supply and demand describe the fluctuations of the prices of commodities about their costs of production. They do not describe the prices of the commodities themselves. Oil’s demand is relatively inelastic --and its supply constrained by cartels-- and as such its price can remain detached from its costs of production, enabling super-profits.
Commodities are sold at their cost of production in capitalism too. Profit is the surplus value that is stolen during the process rather than distributed to the worker.
No, things are priced according to supply and demand market rules. This is quite inefficient and often leaves the most vulnerable at the mercy of speculators, since they can manipulate markets to serve their needs.
Look at the price of oil. Its production costs have remained stagnant in the past years, yet its price has suffered heavy fluctuations. This is what happens in the absence of economic planning.
Supply and demand describe the fluctuations of the prices of commodities about their costs of production. They do not describe the prices of the commodities themselves. Oil’s demand is relatively inelastic --and its supply constrained by cartels-- and as such its price can remain detached from its costs of production, enabling super-profits.
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