You're just not valuing money correctly if you buy more when the velocity goes up. The correct reason to buy more is more future production.
Post by twetch#7355
There’s levels to it, methinks.
For instance, when the Fed prints money, velocity is inevitably going to rise.
Banks ‘buy’ that money fast (tacking-on velocity + inflation), then turn around and leverage it (vi++) by loaning it, (vi++), etc etc.
What the chain says
- Block
- 633 861
- Time
- 2020-05-07T18:28:00Z
- Signer
- 1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW
- App
- twetch
- Type
- post
- Content type
- text/plain
- Name in tx
- twetch#7355
Fields the transaction did not carry are omitted. Open the payload to see the bytes as stored.
Signed by
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW VerifiedReplies (14)
This is why payday lending is a huge scam, and a terrible idea.
But buying at the top is the name of the game.
By the time that money trickles all the way down to that person who’s ‘buying’ it, it’s changed hands too many times.
ie: There is not enough margin left for the ‘leaf user’ to create any ‘real value’ - it’s all been ‘exited’ by the vampiric ‘value = velocity + future product’ machine.
This is why the rich stay rich despite producing practically no value through labor.
So, to see ‘value in velocity’ requires decomposing the scenario and isolating the ‘environment’ in which the commerce happens; errantly attributing the lion’s share of value creation to ‘the system’, not the individuals transacting.
ie: ‘exit mentality’