Quote from: FinShaggy on May 28, 2013, 05:16:08 PM

Quote from: Vlad2Vlad on May 28, 2013, 06:01:21 AM

Luckybit,

Can you give me a quick answer to a couple questions for which I cannot find any good answer. This is relevant to the value and future of tokens such as devcoin which is why I'm asking it here and not in PM.

1) Since you cleared these are tokens which does change a lot with my own personal theories I'm hoping you can add some color to what I've been searching for.

2) What's your take on the incredibly stable bitcoin token, an utterly worthless video game token showing incredible strength and price stability at well above $120. From an econ point of view it's not possible for this length of time so maybe you can add some new perspective. I firmly believe the natural forces exacerbated after a few weeks and it is now being propped up, but for what purpose, by artificial means....but who and for what purpose, again?

3) These tokens are known about by maybe 1% of the population, and I mean, known as in knowledge not some quick thing they heard on channel 12 news. So it's only a matter of time before awareness explodes and goes logarithmic and depending the number of tokens on the market at the time most if not all coins can stand to gain massive price appreciation, especially one such as devcoin which has a large following. What's your take on this theory of mine and the possibility of it actually happening in my timeframe of 6-18 months or so?

4) Tokens are different than money but I think from the physics and economics point, such as supply and demand, velocity of money, turn over rate, etc,. these tokens should behave closely to the same model as money since in essence they can be treated as fiat money at some point so then their price can appreciate based on the same theories which govern the current market value of any fiat currency. What's your take on that and perhaps a timeframe?

Thanks in advance.

regards,

Vlad

I wouldn't say money is completely different than tokens.

Enter token, get service... Tokens are really just local currency. REALLY local.

Hi, Actually I would say Vlad and FinShaggyare correct on their statements.

We could have a look on the theory behind token money and money.

at http://wiki.answers.com/Q/What_is_the_difference_between_a_commodity_form_of_money_and_token_money you can find this:

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A token form of money is when a form of money (for example a coin) is created that has little or no intrinsic value, but has value because a company or person has agreed to exchange the token for a good or service of value. One example is bus tokens - small coins that can be presented on buses in exchange for transportation.

Which fits the common knowledge of what a token is, but a more strict definition is found here http://oll.libertyfund.org/?option=com_staticxt&staticfile=show.php%3Ftitle=318&chapter=9929&layout=html&Itemid=27

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We must distinguish between coins according as they serve for standard money or for token money. A standard coin is one of which the value in exchange depends solely upon the value of the material contained in it. The stamp serves as a mere indication and guarantee of the quantity of fine metal. We may treat such coins as bullion, and melt them up or export them to countries where they are not legally current; yet the value of the metal being independent of legislation will everywhere be recognised.

Token coins, on the contrary, are defined in value by the fact that they can, by force of law or custom, be exchanged in a certain fixed ratio for standard coins. The metal contained in a token coin has of course a certain value; but it may be less than the legal value in almost any degree. In our English silver coinage the difference is from 9 to 12 per cent., according to the market price of silver; in our bronze coinage the difference is 75 per cent. The metal contained in the French bronze coins is in like manner equal in value to little more than one quarter of the current value. In many cases the difference has been far greater, as for instance in some of the old kreutzer pieces lately current in the German states. Woods's halfpence, which at one time created so much discontent in Ireland, or the small money previously issued by Charles II. in Ireland, are extreme instances of depreciated token money.

Therefore token money is basically ALL money we handle now-a-days, the main difference is, money handled centrally by a government authority is recognized by law, and criptocurrency is recognized by custom, is only a matter of time and social power to make custom into law.

EmilianoZ

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