Post
Topic
Board Bitcoin Discussion
Re: When the majority decides to change the rules
by
Dai
on 23/03/2011, 00:16:18 UTC
Quote
We live in an exponential monetary system so the money supply has to be exponential in nature and character to fit in with it. If bitcoin were to ever challenge let alone replace our existing money supply it would to change to an exponential currency.

Why do you think we came off a gold standard. I'll tell because France asked to be paid in gold and America didn't have enough gold.
http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=5881

And by the way I prefer 100% reserve currency.

Think of bitcoin as a cake you keep splitting the cake till you end up with crumbs but, at the same time more and more people are taking a piece or crumbs as they come into the system so your crumbs have to grow in value to be able to buy what you bought before if your crumbs don't gain value and prices remain the same your up the creek without a paddle. This is the opposite of goods loose value as stated before. it does not matter the size of the piece of cake you have if goods go up your cake has to increase in value to keep up. If your piece of the cake gets smaller because it needs to shared out amongst more people then prices need to come done for you to be able to afford what bought previously.

By the way gold, silver are a form of fiat. they derive there value from people (as does paper money) and what value we give it, they have no magic value of there own they are just metals.