Quote from: MatthewLM on September 12, 2011, 11:12:30 PM

The issue is to make the transaction software as compatible with different backends (different monies) as possible.

That's where Open Transactions comes in.

Thanks for the link!

Quote from: Revalin on September 12, 2011, 11:51:01 PM

Edit: And another thought. The cost of production is around $330/oz. That makes mining extremely profitable at these prices. Is there any reason to doubt that, just like BitCoin, in the long run the high prices will bring in tons of mining capacity until the system reaches equilibrium again (probably with both a higher cost of production and a lower price of gold)?

Excellent chart, that's actually one I haven't seen before.

The average cost is significantly higher than $330/oz today. Rising input costs such as energy, fuel, labor and materials have increased the overall production cost. I'd have to verify what the numbers are, but it's still well below $1,000/oz. That's a massive profit margin for a physical product, especially when the margins used to be only a few percent or even negative at times, and only the largest and best-capitalized companies were able to survive.

Attraction to such high margins is exactly what's happening: old mines are being reopened while exploration companies are ramping up their efforts and the majors are looking to acquire juniors in order to capitalize on as much production as possible. That's precisely what occurs in Bitcoin mining, although the terms are different and movement of miners/pools is more flexible.

History rhymes.