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... a central authority is required to protect the value of currency. ... I don't really see the need for a central authority and you'd have to make a really g

by wsc981 9y ago

... a central authority is required to protect the value of currency. ... I don't really see the need for a central authority and you'd have to make a really good case to convince me. I believe most currencies originated in a decentralised way. I think the central authorities have failed in a big way during the euro-crisis and I welcome a future where the value of money cannot be manipulated by some central authority in order to push some economic and politic agendas. It's clear to me that decentralised currencies provide many needs that cannot be met by centralised currencies.

thkim 9y ago
i'm not sure what you mean by euro crisis but if you are asking why euro failed, it shows exactly why bitcoin will not work. euro is an attempt to use single currency for different economies. euro failed because it ignores simple fact that different economies need different currency value to stabilize their economy. reason why portugal ireland greece spain are suffering worse than it should be is because those countries lost their power to control currency to european bank.
- deleted 9y ago
  [deleted]
- dmichulke 9y ago
  > reason why portugal ireland greece spain are suffering worse than it should be is because those countries lost their power to control currency to european bank. So you're saying there is no way to have a stable economy without control over your currency?
  - topranks 9y ago
    Monetary policy is hugely important yes.
    - dreamfactored 9y ago
      Many countries have big internal variations within areas, just as much as between other countries - by your logic why is it not just as necessary to have separate currencies for California, Southern Italy etc? London, New York, Shanghai, Paris, Singapore would be better served by a common currency than their national ones according to this line of logic, and given that they make up significant proportions of the economy for their respective nations, you'd think that enforcing use of the local currency is hugely damaging for their economies.
alexasmyths 9y ago
"I don't really see the need for a central authority and you'd have to make a really good case to convince me." A central bank can ultimately control the value of a currency by either grabbing assets on the free market and emitting currency - or the inverse - grabbing currency and selling off the underlying asset. This is a very powerful way to control volatility. Gold has fairly strict supply and it moves around a lot. If the US Fed really, really wanted to control the USD vis-a-vis some other currency, they could do that. "I believe most currencies originated in a decentralised way" Ah? No, definitely not. Except for gold ... currencies have issuers, rules, a central bank of sorts. Like the King. Or whatever.

by wsc981 9y ago

thkim 9y ago

i'm not sure what you mean by euro crisis but if you are asking why euro failed, it shows exactly why bitcoin will not work. euro is an attempt to use single currency for different economies. euro failed because it ignores simple fact that different economies need different currency value to stabilize their economy. reason why portugal ireland greece spain are suffering worse than it should be is because those countries lost their power to control currency to european bank.

deleted 9y ago
[deleted]
dmichulke 9y ago
> reason why portugal ireland greece spain are suffering worse than it should be is because those countries lost their power to control currency to european bank. So you're saying there is no way to have a stable economy without control over your currency?
- topranks 9y ago
  Monetary policy is hugely important yes.
  - dreamfactored 9y ago
    Many countries have big internal variations within areas, just as much as between other countries - by your logic why is it not just as necessary to have separate currencies for California, Southern Italy etc? London, New York, Shanghai, Paris, Singapore would be better served by a common currency than their national ones according to this line of logic, and given that they make up significant proportions of the economy for their respective nations, you'd think that enforcing use of the local currency is hugely damaging for their economies.

alexasmyths 9y ago

"I don't really see the need for a central authority and you'd have to make a really good case to convince me." A central bank can ultimately control the value of a currency by either grabbing assets on the free market and emitting currency - or the inverse - grabbing currency and selling off the underlying asset. This is a very powerful way to control volatility. Gold has fairly strict supply and it moves around a lot. If the US Fed really, really wanted to control the USD vis-a-vis some other currency, they could do that. "I believe most currencies originated in a decentralised way" Ah? No, definitely not. Except for gold ... currencies have issuers, rules, a central bank of sorts. Like the King. Or whatever.