Mauro Rebelo | Tagomago on Nostr: Research for my next article on #Biodiversity #Credits “Hayek explained that ...

Research for my next article on #Biodiversity #Credits
“Hayek explained that contrary to popular and elementary treatments of the topic, the economic problem is not merely the problem of allocating resources and products, but more accurately, the problem of allocating them using knowledge that is not given in its totality to any single individual or entity. Economic knowledge of the conditions of production, the relative availability and abundance of the factors of production, and the preferences of individuals, is not objective knowledge that can be fully known to a single entity. Rather, the knowledge of economic conditions is by its very nature distributed and situated with the people concerned by their individual decisions. Every human's mind is consumed in learning and understanding the economic information relevant to them. Highly intelligent and hardworking individuals will spend decades learning the economic realities of their industries in order to reach positions of authority over the production processes of one single good. It is inconceivable that all these individual decisions being carried out by everyone could be substituted by aggregating all that information into one individual's. In a free market economic system, prices are knowledge, and the signals that communicate information. Each individual decision maker is only able to carry out her decisions by examining the prices of the goods involved, which carry in them the distillation of all market conditions and realities into one actionable variable for that individual. In turn, each individual's decisions will in turn play a role in shaping the price. No central authority could ever internalize all the information that goes into forming a price or replace its function. […] The rise in the price itself contains all the relevant information they need.” The #Bitcoin Standard. Saifedean Ammous