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Correct. You could also solve the "unit of account" and "store of value" problem by pegging your crypto-currency to the USD, 1:1 exchange. Then you get the adva
by joelhaus 12y ago
Correct. You could also solve the "unit of account" and "store of value" problem by pegging your crypto-currency to the USD, 1:1 exchange. Then you get the advantage of the decentralized transport network and the stability of the dollar (or any other preferred real world currency).
It's tends to not be a popular opinion around here (there are probably a few with vested interests), but Bitcoin as a currency is fatally flawed. It's supply is structured so that Bitcoin perpetually increases in value, thereby perpetually slowing down the velocity of Bitcoin transactions.
- brg444 12y agoDoing what you suggested would very much destroy any value existing in BTC. The USD is not actually a reference in terms of store of value. It's deflationary property is a feature, not a flaw.
- joelhaus 12y agoNot proposing doing anything to Bitcoin, it's an idea for controlling the supply of a new crypto-currency. | It's deflationary property is a feature, not a flaw. I studied this while getting my economics degree. Methinks you are missing some important behavioral dynamics related to interest rate interactions with consumption and investment. Here's a lesson from the fed: http://www.philadelphiafed.org/education/teachers/resources/fed-today/Functions_and_Characteristics_of_Money_Lesson.pdf http://www.philadelphiafed.org/education/teachers/resources/...