Quote from: dr_nix on April 27, 2012, 11:53:42 PM

Now what I think he would like, judging from this video, is a currercy that is controlled in the same way as bitcoin (decentralized) but with a different algorithm. First he discredits a money supply where the inflation is predetermined. He prefers an algorithm that tracks GDP. Unfortunately he doesn't give any insights as how this should work technically. Here are my ideas:

I sounds to me like he wants the currency to remain stable in price, so if you have X units that can buy Y units of a basket of goods then in 20 years that same X units will buy that same Y units of the basket. That would make planning much simpler, for businesses and retirement. But it can't work. There's no way any central authority can possibly know enough to manage the money supply, no matter how much computer power it has.

The only way to manage a money supply is to not manage it at all - that is, to let the free market manage it via the interactions and choices of everyone.