4 ms·
It doesn’t, this is one of the major criticisms of the gold standard. Bitcoin could never be gold even if it wanted to. Making gold proper hard currency is eas
by taw55 9y ago
It doesn’t, this is one of the major criticisms of the gold standard.
Bitcoin could never be gold even if it wanted to. Making gold proper hard currency is easy, just merge two neutron stars and you’ll have a finite amount to drill up. That’s nothing like having to compute some hash where you simply set up the rules of creation. Gold cannot be distributed or forked via github, it’s simply a fundamentally flawed comparison.
There’s people who think it’s just fine and dandy to have multiple currencies making the rounds in the economy. The problem is that it’s just a horrible user experience in the end. It reminds me of those anarchists who believe we should all govern in free assemblies and have those dull daily meetings. Aint nobody got time for that, few months and you’ll have people paying some guy to go get into arguments with some other guy and to make their decisions for them. Sounds familiar doesn’t it.
You’re not going to get farmers, clowns and housewives to check the daily fluctuations between the dozen or so cryptocs-du-jour and decide which one to invest in, hedge against or transfer to. Well, unless you spend the majority of your time thinking about that stuff and getting paid to do so. You could make a decent buck doing just that... hmmm, if only we had something resembling it.
Keep it simple, brains like simple. Don’t make me think. If you make my computer think, at least have tractable math without a gazillion variables.
- lr4444lr 9y agoI'm not sure from your tone if you're implying that Bitcoin is thus subject to the same criticism, which it seems to by your content. If you're not, it begs the question: who decides the complexity behind the hash calculation, or in your words, how to "make my computer think"? Some bureau?
- cableshaft 9y agoSo there will be one or two major currencies for people who don't want to think, and thousands of others who want to play the investment game, just like what happens every day in the stock market. We currently have one currency for most people's everyday use (local government currency), and they don't bother to read up on what the stock market is up to, but there are plenty that will and choose to buy shares in whatever they think is worth buying. And we'll probably even have the equivalent of retirement accounts and mutual funds for cryptocurrency, we're not even that far away from that reality today. So yeah, there are people who aren't going to want to pay attention to all that, and they won't need to whenever we've reached that tipping point. They'll just have bitcoin (or whatever) and deal exclusively in bitcoin, and they won't care what its price is compared to everything else, just like no one bothers to peg the US dollar to any particular share. It's because fiat currency is still so dominant that bitcoin appears to be volatile in comparison, because they're using USD as the anchor. If bitcoin becomes the dominant coin, it will appear to be just as stable, if not moreso, as you won't have quantitive easing or government manipulation to worry about.
- solotronics 9y agothe argument that if cryptos become large they fluctuate too much is flawed, as as asset becomes larger it will become correspondingly less volatile. Already there are periods where BTC has has similar volatility to gold and if it follows its current trajectory will be MORE stable than gold.