Post
Topic
Board Bitcoin Discussion
Re: Bitcoin 20MB Fork
by
benjamindees
on 09/02/2015, 02:26:15 UTC
Ideal Money

http://en.wikipedia.org/wiki/Ideal_money

Quote from: Wikipedia
in other words, people are used to measuring the value of goods by money, but due to some reasons the value of money itself changes, which causes the value of silver or gold changes. We can't tell the constant value of the metal, and the fixed mind-sets can not easily be changed.

Gold attains its value only from the far future, from a time when it is needed to consume and is expected to be found in short supply.  In the mean time, the value of gold can fluctuate wildly, because gold is not a good currency for day-to-day transactions.  It is not useful next week.  It is only useful in the long term.

Bitcoin, on the other hand, can be useful *both* next week *and* a thousand years from now.  Bitcoin is, in this sense, gold without the limitations.

Quote from: Nash
"A possible nonpolitical basis for a value standard that could be used for money would be a good industrial consumption price index(ICPI) statistic. This statistic could be calculated from the international price of commodities such as copper, silver, tungsten, and so forth that are used in industrial activities."

Bitcoin can rely on the CPI only in the sense that Bitcoin *becomes* the CPI.  Like I've said before, if this type of thinking (which has been in use since WWII, at least;  it's not a new idea) worked, then all of Alan Greenspan's attempts to peg the US dollar to the price of scrap steel would have worked.  They didn't work.  They were fundamentally flawed.