4 ms·

Excellent article. My favorite quote: > Apart from whether there is a central bank somewhere to bid against George Soros, doesn’t the difference between a real

by kbd 15y ago

Excellent article. My favorite quote: > Apart from whether there is a central bank somewhere to bid against George Soros, doesn’t the difference between a real currency and an imaginary currency lie in some sense in the composure with which a customer can ask if the currency is accepted here and in the composure with which a merchant can say yes? Every currency is valuable only because other people consider it to have value.

deleted 15y ago
[deleted]
dexen 15y ago
> Every currency is valuable only because other people consider it to have value. Two counterarguments: - the idea of `legal tender' [1]. Usually the physical manifestation (coins and banknotes) of official currency in a given country/region/whatever is also codified by law as legal tender. Which means, when used for settling a debt, the creditor is obliged to accept it. Contrast that with gold, for example: it's considered valuable, but creditors are not required to accept it. Value of legal tender stems from both recognition and the legal framework of it being legal tender. - taxes. Country's/region's law dictates the currency persons and organizations have to use for settling taxes and other dealings with administration. A currency that people don't trust or use for any other reasons could still have well-understood value in relation to settling taxes. That having been said, I firmly believe Bitcoin has great potential. Even if this particular implementation fails at some point, other ones will follow. ---- [1] http://en.wikipedia.org/wiki/Legal_tender http://en.wikipedia.org/wiki/Legal_tender
- mike_esspe 15y ago
  >the idea of `legal tender' This idea doesn't work in the country with hyperinflation :) As long as people don't consider that the currency is valuable, no legal force can convince them.

4 ms·

Excellent article. My favorite quote: > Apart from whether there is a central bank somewhere to bid against George Soros, doesn’t the difference between a real

by kbd 15y ago

deleted 15y ago
[deleted]
dexen 15y ago
> Every currency is valuable only because other people consider it to have value. Two counterarguments: - the idea of `legal tender' [1]. Usually the physical manifestation (coins and banknotes) of official currency in a given country/region/whatever is also codified by law as legal tender. Which means, when used for settling a debt, the creditor is obliged to accept it. Contrast that with gold, for example: it's considered valuable, but creditors are not required to accept it. Value of legal tender stems from both recognition and the legal framework of it being legal tender. - taxes. Country's/region's law dictates the currency persons and organizations have to use for settling taxes and other dealings with administration. A currency that people don't trust or use for any other reasons could still have well-understood value in relation to settling taxes. That having been said, I firmly believe Bitcoin has great potential. Even if this particular implementation fails at some point, other ones will follow. ---- [1] http://en.wikipedia.org/wiki/Legal_tender http://en.wikipedia.org/wiki/Legal_tender
- mike_esspe 15y ago
  >the idea of `legal tender' This idea doesn't work in the country with hyperinflation :) As long as people don't consider that the currency is valuable, no legal force can convince them.