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To me it always seemed strange to use currency as "unit of value". Because it is not a unit of value, currency prices go up and down just like everything else (
by koonsolo 9y ago
To me it always seemed strange to use currency as "unit of value". Because it is not a unit of value, currency prices go up and down just like everything else (look at Zimbabwe).
Why don't we use a real unit of value, based on the consumer index for example. Certain goods could be "x consumer points", averaged out.
Contracts could be made more stable, because it would actually express purchasing power, and not based on some potentially fluctuating currency/asset/whatever.
Edit: Also, it would make things more clear for contracts running over 30 years for example, what that number will be worth at the end of the contract.
- XR0CSWV3h3kZWg 9y agoConsumer price indexes change. The price of almost everything changes, even in the same time period the price of different goods and services vary depending on where you are and how much of it you are buying at once. Nice history of the price of light: https://www.vox.com/2015/6/9/8749751/historic-cost-of-lighting https://www.vox.com/2015/6/9/8749751/historic-cost-of-lighti... The price of transistors has famously dropped by half every 2 years. The price of t shirts fell even when the price of cotton stayed the same: https://www.forbes.com/sites/samanthasharf/2013/07/02/the-t-shirt-turns-100/#136442865305 https://www.forbes.com/sites/samanthasharf/2013/07/02/the-t-... Brazil has such great variation in CPI that they need to calculate it for all their major cities. Even if we purposefully chose something had it's supply held almost perfectly constant we see heavy price drift. (land is a great example, most countries don't see significant land gain or loss)