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> Bitcoin may be the best proof yet of how deeply flawed the libertarian free market ideology really is. The price of gold isn't stable because the visible han
by splintercell 9y ago
> Bitcoin may be the best proof yet of how deeply flawed the libertarian free market ideology really is.
The price of gold isn't stable because the visible hand of the govt has stabilized it, or if there is any law which protects it.
If you have convinced yourself that this is the reason why it is stable, then you're drinking your own kool aide.
The price of gold, or any currency is stable because its market has been discovered, and huge financial assets have been created which allow people to profit off it's price movements, which results in price stability.
Even with that, Gold market can move up and down quite drastically, for instance when in 2009 and 2010 by 25% and 30% respectively, then dropped by 27% in 2013.
The reason why price of Bitcoin moves so much up and down because it's true market hasn't realized yet, once it does, it's price will stabilize too. No govt can make it happen.
- xenadu02 9y agoGold and silver aren't stable, they fluctuate all the time just at long timescales compared to humans. When the Comstock Lode was discovered it massively affected the price of silver. Similarly when Spain stole Aztec gold it caused changes in the value of gold. If someone ever manages to mine asteroids for gold or we discover a previously unknown reserve we'll see more price shocks. I don't know where you got the idea that the supply of gold was stable; it is merely inflexible because it depends on physically digging it out of the dirt.