Imagine if Esperantists had our own currency

Esperanto is an international language, but do we need an international currency? At every congress, people come from many different countries to use a common language, but could they also use a common currency? Nowadays there is a massive growth in crypto-currencies like Bitcoin and that has me thinking. What if the Esperanto community had a currency? Continue reading “Imagine if Esperantists had our own currency”

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Regardless Of Its Price, Bitcoin Is A Flawed Currency

I’ve noticed that some of my old articles about Bitcoin have been getting a lot of attention lately. I first started writing about Bitcoin back in 2013, when I considered it to be a bubble that would soon burst. When it did burst, I wrote about its flaws and figured that would be the end of the story. I mean after seeing people dramatically lose a lot of money extremely quickly, who else would want to jump in? After seeing a bubble collapse why would anyone want to repeat the process?

Yet as the price of Bitcoin soared to almost $20,000, I got an increasing number of “I told you so” and “Look who’s laughing now” comments. I was just a dumb statist shill who failed to recognise the glory of Bitcoin and missed my chance to get rich as a result of it. In fairness, I was wrong to predict that Bitcoin would fade away, I made the mistake of presuming people would learn from their mistakes and not be swindled by another bubble. As you can imagine, these comments quickly disappeared after the price crashed by three-quarters to $6,000. Funnily enough, my blog still gets shared on Bitcoin forums, however this time it is used to show that dramatic crashes are normal events, if Bitcoin can survive 2013 & 2014, it can survive 2018. There seems to be little consideration of the idea that massive price crashes shouldn’t be a normal feature of a currency or asset and wild volatility should be treated as a bug not a feature.

Since the collapse, the price has risen considerably and currently sits at around $10,000. Most of the discussion now focuses on which direction the price will go, will it rise again or face another crash? Did we just experience a market correction or the beginning of the end? Continue reading “Regardless Of Its Price, Bitcoin Is A Flawed Currency”

No One Has Time For A Completely Free Market

The free market often sounds quite simple and straight forward. Consumers simply decide whether product A or B benefits them more and then choose accordingly. If the same or similar product is sold by shop A or B consumers simply choose whichever is cheaper, better quality or otherwise benefits them. It is easy and doesn’t require any complicated plan or someone telling consumers what is best for them, people simply decide themselves. This is the market as described by economists, politicians and writers, especially when they are trying to make a political point. After all, if the market is so simple and straight forward, why do we need the government interfering? All these rules and regulations only get in the way, surely it is better for everyone if we just leave the consumers to decide for themselves. Continue reading “No One Has Time For A Completely Free Market”

Why Do People Work Hard When They Have No Economic Incentive To Do So?

Let’s play a game. I will name two forms of football and you tell me which you think offers better incentives to players. On the one hand is soccer, the world famous sport which receives huge funding from sponsorship, merchandise and ticket sales. This allows large investment in the sport and the ability to pay good (sometimes even exorbitant) wages. On the other hand is Gaelic Football, played only by Irish people mainly in Ireland. Unlike soccer, it is an amateur sport and none of its players get paid. All athletes must also have full time jobs, meaning they can only train in the evenings after work.

This should be obvious. Continue reading “Why Do People Work Hard When They Have No Economic Incentive To Do So?”

What Motivates People To Work?

It’s funny that despite being such an important part of the economy and our lives, not much thought is given to why we work. It is generally taken as a given while economists focus on more important work. It is usually assumed that work is something that people don’t want to do and they must be compensated with money to make them do it. No one would work unless they had to, its only the need of money that gets people up in the money. It is an article of faith among economists that people respond to incentives and this usually refers to monetary incentives. After all, didn’t the Soviet Union fall because people weren’t paid enough and therefore motivated enough to work? Simply, if you want to motivate someone to work, you must pay them to do so. Continue reading “What Motivates People To Work?”

The End Of Bitcoin

For the last two years, I have been following the rocky road of Bitcoin, as it soared on the promise of revolutionary change and collapsed in a fog of fraud and bad economics. After losing almost 85% of its value in the last twelve months, plunging from $1,200 to $200, has bitcoin finally reached the end of the road? Does it have any chance of recovering or is it destined to simply fade away? Continue reading “The End Of Bitcoin”

The Power Of Employers

Many economists like to think of the markets as a place where equals negotiate and bargain to find mutually beneficial deals. Employers and workers need each other and so come to a deal that benefits them both. As these agreements are reached voluntarily, there can be no injustice in the system, as otherwise why would they have agreed to it? There is therefore no need for government intervention as people are well able to look after themselves. Unfortunately, in the real world, things are very different. In the real world, employers have market power over workers that prevent the market reaching a fair balance. It is for this reason that strong unions and government intervention is needed. Continue reading “The Power Of Employers”