Post
Topic
Board Economics
Re: High volatility and sudden crashes will kill bitcoin, unless...
by
deisik
on 11/06/2017, 05:59:45 UTC
Because any currency needs a reference value if it is going to avoid those dramatic ups and downs.

I think it is not necessary to have one particular reference value. A simple backing mechanism like I'm proposing here would also help to combat volatility. But there seems to be low interest for that in the Bitcoin community. (Perhaps I should bump this idea in the next real bear market).

However, I agree with you that energy is the "purest" asset that exist in the world

As to me, having a few reference values would only make matters terribly worse

Since it will excessively complicate things while not solving the main task, i.e. making the coin less volatile. In fact, with two or more independent factors, you can never be sure that they won't change in unison thus adding to volatility, not taking from it. If they are not independent, it makes no sense to use more than one factor anyway. Regarding energy, there are different types of it in respect to how much work can be done with it, electricity having the highest capacity to make work, while heat energy the lowest. And just in case, you shouldn't make your threads self-moderated, otherwise many people will stay away from posting in them. No one wants his posts deleted for whatever reason (whether he is in a signature campaign or not)