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> "But what I soon learned is that most of the people associated with Bitcoin saw it as digital gold " Since it was basically designed to work like a pseudo-ph

• konjin 6y ago
  Because you could easily tweak the algorithms to make it act like stockpiling cheese. If you use a value time pair adding inflation that reduces the value of old coins is trivial.
• ineedasername 6y ago
  Gold seems like it was always an odd thing to pin an economy to to begin with. A resource that isn't inherently tied to value that seems to have been "chosen" by centuries of evolution towards a scarce material that could be centrally controlled. What's more, it has become less scarce as better technologies have emerged for extracting it. And just like printing excess fiat currency, early gold rushes showed the same type of rapid inflation in local economies, with money made by those selling mining tools & services to miners, and those purchasing the mined gold to arbitrage it out to other geographical regions. It was still just an abstraction layer put on top of direct bartering to solve the liquidity problems inherent to direct bartering once the # of goods and services reach a high enough level. The fundamental principal of economics that many people miss when they focus mainly on monetary supply is that the velocity of capital [0] is of equal or perhaps even greater importance. [0] https://www.aier.org/article/what-is-money-velocity-and-why-does-it-matter/ https://www.aier.org/article/what-is-money-velocity-and-why-...