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But what happens to the price of a finite resource when demand rises? That's not an artificial increase...that is the free market valuation. It's not really dif

by cronix 5y ago

But what happens to the price of a finite resource when demand rises? That's not an artificial increase...that is the free market valuation. It's not really different than the price of the finite pool of bitcoin. Demand soars and so does the price and the opposite happens when demand is reduced.

FredPret 5y ago
Yes but this newfound demand for gold will be based entirely on a government regulation, making it artificial. If the market naturally desired enough gold to back every transaction, the price would skyrocket right now
- ClumsyPilot 5y ago
  The lack of demand for gold is based on artificial trust in artificial dollar. We still had private currencies in 1900's, where the issing bank would go bust and the paper woupd become worthless.
  - FredPret 5y ago
    Billions of people going about their day in a world denominated in fiat Dollars for five decades now doesn’t scream “artificial trust” to me. Sure, one day it’ll all go to hell, but then so did the gold standard. If you want to stop politicians from overspending, then stop politicians from overspending. Don’t insist on using an arbitrary element as the reference point for all value. You might as well have a currency backed by CPU hours or bowls of petunias or live Gregorian choir performance tickets.
    - ClumsyPilot 5y ago
      Billions of people go about their day in a country dominated by artificial social credit system, I don't see how this live of argument proves or disproves anything is artificial. Why are 'natural' things suppose to be more stable, we had 'natural' tulip mania? Are mortgage backed securities artificial? Is lending based on Experian's credit rating 'natural'? Is bitcoin natural? I am not seeing how this line of inquiry leads to tangiable information. I don't think we are overspending at all acutely, I think we should be spending a lot more on the real economy instead of inflating unproductive asset bubbles, life we've been since the 70s. I think currency is just an institution, it's no different from parliament or the catholic church, it runs only on faith. If tomorrow everyone looses faith in it, it disappears.
      - FredPret 5y ago
        >If tomorrow everyone looses faith in it, it disappears Same with gold, at least in terms of its value

by cronix 5y ago

FredPret 5y ago

Yes but this newfound demand for gold will be based entirely on a government regulation, making it artificial. If the market naturally desired enough gold to back every transaction, the price would skyrocket right now

ClumsyPilot 5y ago
The lack of demand for gold is based on artificial trust in artificial dollar. We still had private currencies in 1900's, where the issing bank would go bust and the paper woupd become worthless.
- FredPret 5y ago
  Billions of people going about their day in a world denominated in fiat Dollars for five decades now doesn’t scream “artificial trust” to me. Sure, one day it’ll all go to hell, but then so did the gold standard. If you want to stop politicians from overspending, then stop politicians from overspending. Don’t insist on using an arbitrary element as the reference point for all value. You might as well have a currency backed by CPU hours or bowls of petunias or live Gregorian choir performance tickets.
  - ClumsyPilot 5y ago
    Billions of people go about their day in a country dominated by artificial social credit system, I don't see how this live of argument proves or disproves anything is artificial. Why are 'natural' things suppose to be more stable, we had 'natural' tulip mania? Are mortgage backed securities artificial? Is lending based on Experian's credit rating 'natural'? Is bitcoin natural? I am not seeing how this line of inquiry leads to tangiable information. I don't think we are overspending at all acutely, I think we should be spending a lot more on the real economy instead of inflating unproductive asset bubbles, life we've been since the 70s. I think currency is just an institution, it's no different from parliament or the catholic church, it runs only on faith. If tomorrow everyone looses faith in it, it disappears.
    - FredPret 5y ago
      >If tomorrow everyone looses faith in it, it disappears Same with gold, at least in terms of its value