Post
Topic
Board Economics
Re: The fatal flaw of Real Bills Doctrine
by
dinofelis
on 12/02/2015, 10:53:48 UTC

It is interesting to discuss what is REAL money


Real money is what many people accept as real money in exchange for goods and services.
It doesn't matter what is its form, who created it, how many there is of it.  As long as enough people believe it is real money, it IS real money.

Quote
Many people thought that their bitcoins on MTGOX are real, since they could sell them for fiat and use fiat to buy them on MTGOX. But as long as they don't withdraw, those bitcoins are just numbers on MTGOX's database

It was real money until it wasn't any more Smiley

There's no guarantee that anything that is "real money" at moment t0, is still real money at moment t1.

Real money is a kind of "speculative lock-in", a kind of meta-stable situation, which can last for centuries, or just for a week.