Post
Topic
Board Economics
Re: Hmm... is it time to crash BTC exchange rates yet?
by
NewLiberty
on 28/05/2013, 12:43:06 UTC
Unfortunately this is what happens with a currency that has a limited amount of units. If btc was limitless, then there would be no need for hoarding and thus its value would plummet as there would be btc in abundance. As an example, communities in the US are starting to use time as a unit of currency which is itself limitless in supply, thus eliminating the need to hoard. See www.themoneyfix.org

Time is limitless only if you are immortal.

So what is your point?

The idea between a fiat and a community currency (if you bothered to watch the documentary it discusses about the use of River hours named after the community it is used in) is that fiat money is itself limited by the supply that is being produced and thus would encourage hoarding. Time is a currency that anyone can give to the community (obviously within the life expectancy of the person) and there is no reason to hoard this type of currency as it is limitless. Therefore, people within the community contribute to their local economy when there is a need which brings to the opposite end which are wage slaves which is what you see nowadays people working to make ends meet.

Which do you prefer? Being a slave your entire life or work only when you need to?

You are engaging in some interesting rhetoric and it is difficult to see if you are agreeing or not.

If you equate work with slavery (which I don't, the difference is coercion vs freedom to contract) and the hours of your life are the currency of the land, then everyone would be participating in a slave economy.  Take a look at what policy goals you are looking to achieve with the currency in play.  The same incentives for hoarding exist whether you pay someone in gold or in hours.  Money in its simplest form is the means used to convince someone to do something that they would not do for free.
Bad money in circulation drives good money into hoards.