Post
Topic
Board Bitcoin Discussion
Re: Price stability, difficulty changes, fairness. infnite coins is NOT inflation
by
Thanak
on 28/07/2011, 15:30:13 UTC
[Here is a comparison of bitcoin to gold
Imagine the first person to find gold said "OK everyone, 1oz of your gold shall be worth 1 million times less than 1oz my gold".  How could they enforce that, if all gold looks the same?  By building a "Gold Registry", where everyone must register their gold, and then declaring that only registered Gold is valuable.  More precisely, rather than trading gold, it is declared that all business shall be done in units called "PyramidCoins".  and they will be given 10 PyramidCoins each.  If multiple people each give multiple gold bExactly 1000 PyramidCoins will be issued per day, in exchange for whatever Gold people are willing to register that day.  That is, if there is only 1 person willing to give 1 gold bar, they are given all 1000 PyramidCoins for their single bar of gold.  But if instead, 100 people are each willing to give 1 gold bar, the 1000 PyramidCoins will be divided between them ars, the 1000 PyramidCoins are divided in proportion to the number of gold bars they registered.  It is also declared that every 25 years, the number of PyramidCoins issued per day will halve, so there is a limited total supply.


Your comparison is wrong.


The first gold found was easier to find than any gold you can find now. The firsts people to arrived in the Klondike had an easier time to find gold than I would have now.

The first bitcoin mined is worth exactly the same as one bitcoin mined today. It's just harder to find.

The limited supply of bitcoin is the primary reason that people are interested in it as a currency. Take that away and you are back in the same playing field as world of warcraft gold.