Quote from: InterArmaEnimSil on July 22, 2010, 12:08:33 AM

Quote from: marketmaker on July 21, 2010, 09:50:53 PM

Quote from: InterArmaEnimSil on July 21, 2010, 09:23:03 PM

How do we deal with the issue of necessary currency value differentials...?

The same way that New York and Oklahoma are both accommodated by the US dollar, i.e. by a variation in the cost of living.

The guy who mows lawns or makes pizzas in New York is going to want more bitcoins for his work than the guy doing the same job in Oklahoma.

Hmm. You're quite correct...then is my (partial) explanation for the Euro situation in Greece wrong? If so, then by what means? I think that the "variation in cost of living" approach can only stretch so far, perhaps Ie, there's FAR more difference in the COL between New York and the outskirts of Bangalore than New York and Oklahoma. The COL approach works in the NY/OK case, but not with a cost of living variation as extreme as the first scenario. Then again...I'm not exactly sure.

bitcoins need to be thought of more like gold than like dollars. Gold may be worth more or less in Bangalore than NY, but the fact that it is a valuable thing with limited quantity that is traded in both places does not have an adverse effect on either economy.