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Author Topic: I was asked a tough question, who can help me answer?  (Read 6319 times)
Vod
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July 22, 2011, 09:02:07 AM
 #61

You're paying for these tokens of silver and gold with US or other currency, are you not?  You don't mail in a sliver of gold that you estimate is worth about the same as a product you want to buy.  You are still converting your silver to a local currency to make a purchase - the silver itself is not the currency.

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July 22, 2011, 09:06:27 AM
 #62

You're paying for these tokens of silver and gold with US or other currency, are you not?  You don't mail in a sliver of gold that you estimate is worth about the same as a product you want to buy.  You are still converting your silver to a local currency to make a purchase - the silver itself is not the currency.

What are you talking about? The silver IS the currency.

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Vod
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July 22, 2011, 09:15:30 AM
Last edit: July 22, 2011, 09:35:26 AM by Jafm
 #63

Interesting - so you exchange currency for one of these cards, which at the time of purchase has approximately the same amount of silver that any exchange would take for the equal amount of currency spent.  It is value based on the precious mineral and not any currency.  Same as purchasing a bitcoin.

However, I guess more merchants would be willing to accept a slice of silver over a bitcoin, simply because it is easier for the merchant to understand and figure out how much that silver is worth.  However, it cannot be widely accepted as currency, since most merchants will not carry a scale capable of verifying the card's claim of 1/10 of a gram.

Thanks error, I did not know such a service existed!   Wink

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July 22, 2011, 01:30:39 PM
 #64

I believe there may be a solution to bitcoin inflation/deflation/volatility by building onto the existing bitcoin protocol to create a pegged-value bitcoin-backed currency: http://forum.bitcoin.org/index.php?topic=30741.0

So far, nobody has given me a serious critique of why it wouldn't work. Maybe it is too verbose for anybody to bother reading all the way through . . .

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