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Title: Bitcoin and Food Post by: CalicoChris on April 26, 2013, 02:27:45 PM What about arbitrarily hooking the value of bitcoin to the value of a basic basket of foodstuffs?
Title: Re: Bitcoin and Food Post by: Rassah on April 26, 2013, 02:36:19 PM What about arbitrarily hooking the value of bitcoin to the value of a basic basket of foodstuffs? Hooking a value works by having someone hold an enormous amount of currency in reserve, then either releasing it to bring the price down or buying it up to bring the price up, thus controlling the price of the currency and keeping it close to the "hook" price. There is no one with a big enough bitcoin stash and the interest to do this (plus these "hooking a price to" ideas always fail miserably, and Argentina is a current example), so I doubt it will ever happen. Title: Re: Bitcoin and Food Post by: herzmeister on April 26, 2013, 03:18:10 PM baskets of goods can very well remain indexes; they don't have to be manifest currencies.
so in the future, if/when fiat currencies are no more, but bitcoin is still volatile, prices (wages, products/services etc, also the BTC value at exchanges) may be measured and displayed in baskets of goods instead of USD or EUR, but payable in bitcoins. Title: Re: Bitcoin and Food Post by: CalicoChris on April 26, 2013, 04:06:16 PM The current direction of bitcoin is a reach to get into stuff like traditional markets. (Paypal, current traditional methods of trade on markets or exchanges, Max Keiser's work, etc).
I'm of the opinion (but I might change it tomorrow), that bitcoin is not a currency per se, but more of a platform toward currency. If it gets pushed in a traditional way, it seems as if it will just be the same thing as fiat. No value and much greed and a lot of manipulation. Title: Re: Bitcoin and Food Post by: Rassah on April 26, 2013, 05:15:47 PM If it gets pushed in a traditional way, it seems as if it will just be the same thing as fiat. No value and much greed and a lot of manipulation. Bitcoin can't really be manipulated. Bitcoin derivatives, such as loans and options and such, can and will be, just like they are in every other currency, but there's really nothing anyone can do about it. Want to stay safe? Don't invest in anything risky. As for greed, that's not a bad thing, as long as it is satisfied through production and business instead of theft. Title: Re: Bitcoin and Food Post by: countryfree on April 28, 2013, 02:56:37 PM Hooking the value of bitcoin to the value of a product, any product, is just not doable. Nobody has the authority nor the power to do so. But it might be interesting to compare the value the value of bitcoin against some basic product. We most often compare bitcoins to the U.S. dollar, we may compare it to oil, gold, or big mac hamburgers.
I'll tell my grandchildren that in my time, I could get about 40 big macs for one bitcoin. That will make them take a pause and think about it, when one bitcoin will pay for 500 big macs. Title: Re: Bitcoin and Food Post by: veteranBtc on April 28, 2013, 03:21:22 PM I'll tell my grandchildren that in my time, I could get about 40 big macs for one bitcoin. That will make them take a pause and think about it, when one bitcoin will pay for 500 big macs. That was a good one :D |