Bitcoin Forum
July 18, 2019, 10:26:36 PM *
News: Latest Bitcoin Core release: 0.18.0 [Torrent] (New!)
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Gold as money  (Read 908 times)
xxjs
Sr. Member
****
Offline Offline

Activity: 280
Merit: 250


View Profile
June 23, 2013, 09:32:58 AM
 #1

Gold could become money, with fully backed notes and demand deposit banking.

But for each gram note, there should be one gram in the bank. The notes would have a higher value than the gold, because it is more practical than gold for trade (but have a slightly higher risk)

Demand deposits must be fully backed by gold or gold notes. The gold in the bank would be more valueable than the gold note, because it can be sent worldwide instantaniously (and have a slightly higher risk than a gold note).

Accounts with interest is possible by lending trough a lending consortium, but the amount can not be paid out on demand, only after some period of time after request, corresponding to the duration of the loans extended by the consortium. Still higher risk.

Everything would have to be private, no government guarantees. Businesses including banks will have to go bust from time to time, keeping the public aware of the risk. If central banks start to mess with the system, we would go into the same slippery slope as we have done the last hundred years. Changing the name of the notes from gram notes to something that is not a measure of mass, would be the first step on the slippery slope.

Conceivable? Yes. Competition to bitcoin? Yes.
1563488796
Hero Member
*
Offline Offline

Posts: 1563488796

View Profile Personal Message (Offline)

Ignore
1563488796
Reply with quote  #2

1563488796
Report to moderator
1563488796
Hero Member
*
Offline Offline

Posts: 1563488796

View Profile Personal Message (Offline)

Ignore
1563488796
Reply with quote  #2

1563488796
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1563488796
Hero Member
*
Offline Offline

Posts: 1563488796

View Profile Personal Message (Offline)

Ignore
1563488796
Reply with quote  #2

1563488796
Report to moderator
1563488796
Hero Member
*
Offline Offline

Posts: 1563488796

View Profile Personal Message (Offline)

Ignore
1563488796
Reply with quote  #2

1563488796
Report to moderator
Hunterbunter
Hero Member
*****
Offline Offline

Activity: 994
Merit: 1000


View Profile
June 23, 2013, 09:47:26 AM
 #2

Been there, done that, it sucks for trade, which sucks for standard of living.
xxjs
Sr. Member
****
Offline Offline

Activity: 280
Merit: 250


View Profile
June 23, 2013, 10:43:27 AM
 #3

Been there, done that, it sucks for trade, which sucks for standard of living.

I think it was the central banks that fucked it up. There were also no electronic transfer of debt at the time.
codesuela
Member
**
Offline Offline

Activity: 74
Merit: 10


View Profile
June 23, 2013, 11:03:26 AM
 #4

https://en.wikipedia.org/wiki/Bretton_Woods_system
xxjs
Sr. Member
****
Offline Offline

Activity: 280
Merit: 250


View Profile
June 23, 2013, 12:28:52 PM
 #5


Yeah I know. When the current system's failure becomes obvious, I think they will try something similar.
Haro
Newbie
*
Offline Offline

Activity: 25
Merit: 0


View Profile
June 23, 2013, 01:12:58 PM
 #6

Sorry, I don't get it. Do you want an electronic gold standard?
Anyway, I don't really think it would be a real competitor of bitcoins excepts for gold bugs....
Lethn
Legendary
*
Offline Offline

Activity: 1540
Merit: 1000



View Profile WWW
June 23, 2013, 01:17:06 PM
 #7

I have a better idea, use physical gold for local transactions with real people you actually know and use Bitcoin for international, problem solved Cheesy
xxjs
Sr. Member
****
Offline Offline

Activity: 280
Merit: 250


View Profile
June 23, 2013, 02:52:59 PM
 #8

Sorry, I don't get it. Do you want an electronic gold standard?
Anyway, I don't really think it would be a real competitor of bitcoins excepts for gold bugs....

I want gold as money, with notes and electronic debt money as extensions. Really I would like bitcoin to take that role, but bitcoin is not suffiently adopted, and may be too late if the fiat system tanks. A dual system of bitcoin and gold is also possible, as the two have some fundamentally different traits. (and yes some will always be gold bugs).

I see the danger of a "gold standard" (which gradually stops being a gold standard), therefore I prefer to say gold as money, even if it includes notes and debt (it has to, otherwise it would be too impractical).
Anon136
Legendary
*
Offline Offline

Activity: 1666
Merit: 1211



View Profile
June 23, 2013, 02:59:15 PM
 #9

whats in it for the issuer of the notes?

Rep Thread: https://bitcointalk.org/index.php?topic=381041
If one can not confer upon another a right which he does not himself first possess, by what means does the state derive the right to engage in behaviors from which the public is prohibited?
xxjs
Sr. Member
****
Offline Offline

Activity: 280
Merit: 250


View Profile
June 23, 2013, 03:01:42 PM
 #10

whats in it for the issuer of the notes?

The notes sold at market price for gold, not necessarily one to one, but with a cut. The notes would anyway be worth more than the corresponding gold due to ease of use.
Anon136
Legendary
*
Offline Offline

Activity: 1666
Merit: 1211



View Profile
June 23, 2013, 03:19:43 PM
 #11

whats in it for the issuer of the notes?

The notes sold at market price for gold, not necessarily one to one, but with a cut. The notes would anyway be worth more than the corresponding gold due to ease of use.

that would work for a while but its sort of ponzish since it relies on new money constantly coming in to pay for the services of existing customers. what happens when the market is saturated with notes? where do they get the money necessary to run day to day operations like paying the employees who operate the counter for exchanging notes for physical and printing new notes to replace worn out notes.

Rep Thread: https://bitcointalk.org/index.php?topic=381041
If one can not confer upon another a right which he does not himself first possess, by what means does the state derive the right to engage in behaviors from which the public is prohibited?
xxjs
Sr. Member
****
Offline Offline

Activity: 280
Merit: 250


View Profile
June 23, 2013, 09:25:04 PM
 #12

whats in it for the issuer of the notes?

The notes sold at market price for gold, not necessarily one to one, but with a cut. The notes would anyway be worth more than the corresponding gold due to ease of use.

that would work for a while but its sort of ponzish since it relies on new money constantly coming in to pay for the services of existing customers. what happens when the market is saturated with notes? where do they get the money necessary to run day to day operations like paying the employees who operate the counter for exchanging notes for physical and printing new notes to replace worn out notes.
The notes have to be fully backed, limiting the amount of notes to the amount of gold in store. They just have to find a way to get paid, I suggested charging more than 50g gold for a 50g note for example. It has been done in earlier times. Maybe notes is not relevant anymore, mabe only demand deposits with cards can take the role of payments. In that case it is easy to find out how they can price it, for example just like they are priced now. The market should decide.
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!