Bitcoins and gold standard dollars -- was Re: Anyone want to make a housecall?

Levi Pearson levipearson at gmail.com
Sat Jun 1 15:25:20 MDT 2013


On Fri, May 31, 2013 at 11:43 PM, Jessie A. Morris
<jessie at jessieamorris.com> wrote:

> Volatile currencies aren't subject to corruption, favors, etc. Or, at least,
> Bitcoin isn't in the same way that government controlled fiat currencies are.

Yeah, instead of the Fed controlling the stability of the currency
according to a strict legal mandate, the value of Bitcoin can be
manipulated by anyone with a couple million bucks and a Twitter
account.  Sounds *way* better to me.

> I don't believe that if Bitcoin were to become fairly common place that it
> would be so volatile. It's volatile currently due to the size of the market.
> As that grows, so will the stability.

Bitcoin at present is, as far as the real market goes, something like
a penny stock.  Except it can't be bought and sold via legitimate
investment markets, but through places like Magic the Gathering Online
Exchange.  They'll let you buy as many bitcoins as you want, but if
people start selling like crazy, suddenly their server goes down!
Yeah, sounds really promising as a future alternative currency. :P
Sure, there are some less shady and downright embarrassing places to
buy and sell bitcoins, but it's not like it's a real market at this
point.

> Deflation is a different issue, certainly, but I'm not sure how that will play
> out. I'm not sure that there's been a currency so far that has had a set date
> where the money pool will suddenly cease to become larger. it'll be a fun
> experiment to see.

Bitcoin really is an interesting experiment.  But calling it a
currency is still a bit of a stretch, and when it's played out we'll
still know more about how limited-supply-backed currencies work from
history than we will from bitcoin.

> Either way, both have their flaws. I'm encouraged to see a challenger to the
> fiat, government controlled, monopolized moneys, even if the challenger is
> flawed.

You can feel encouraged by anything that strikes your fancy, but your
characterization of the dollar just makes you sound foolish.

        --Levi


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