Bitcoin Forum
August 18, 2019, 10:35:26 PM *
News: Latest Bitcoin Core release: 0.18.0 [Torrent] (New!)
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Sound Money Definition  (Read 870 times)
DavidZ
Newbie
*
Offline Offline

Activity: 56
Merit: 0


View Profile WWW
December 23, 2013, 03:07:22 AM
Last edit: December 23, 2013, 04:36:25 AM by DavidZ
 #1

One sees "sound money" being talked about a lot on the interwebs; but what is the definition of "sound money"?
1566167726
Hero Member
*
Offline Offline

Posts: 1566167726

View Profile Personal Message (Offline)

Ignore
1566167726
Reply with quote  #2

1566167726
Report to moderator
1566167726
Hero Member
*
Offline Offline

Posts: 1566167726

View Profile Personal Message (Offline)

Ignore
1566167726
Reply with quote  #2

1566167726
Report to moderator
It is a common myth that Bitcoin is ruled by a majority of miners. This is not true. Bitcoin miners "vote" on the ordering of transactions, but that's all they do. They can't vote to change the network rules.
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
empoweoqwj
Hero Member
*****
Offline Offline

Activity: 518
Merit: 500


View Profile
December 23, 2013, 04:20:19 AM
 #2

I googled it for you and got back:

"Sound money is a phrase technically synonymous with a currency backed by or pegged to some good or commodity. It can also mean a currency that is not rapidly inflating or deflating in value. As even the technical definition is rather fuzzy, in reality, it's often synonymous with whatever economic woo its promoter is hyping. Sound money is often a cover for gold buggery, though it can mean whatever the hell the bullshit purveyor wants it to mean."
DavidZ
Newbie
*
Offline Offline

Activity: 56
Merit: 0


View Profile WWW
December 23, 2013, 04:35:20 AM
 #3

I googled it for you and got back:

"Sound money is a phrase technically synonymous with a currency backed by or pegged to some good or commodity. It can also mean a currency that is not rapidly inflating or deflating in value. As even the technical definition is rather fuzzy, in reality, it's often synonymous with whatever economic woo its promoter is hyping. Sound money is often a cover for gold buggery, though it can mean whatever the hell the bullshit purveyor wants it to mean."

Did you get that from here?

http://rationalwiki.org/wiki/Sound_money

Seems like a very biased article. For example does sound money really need to be "backed by or pegged to some good or commodity".

In my view that article isn't very credible at all; seems more like propaganda.

I was hoping for a definition that says something like:

sound money is a currency that cannot be debased or counterfeited...


empoweoqwj
Hero Member
*****
Offline Offline

Activity: 518
Merit: 500


View Profile
December 23, 2013, 04:44:17 AM
 #4

I googled it for you and got back:

"Sound money is a phrase technically synonymous with a currency backed by or pegged to some good or commodity. It can also mean a currency that is not rapidly inflating or deflating in value. As even the technical definition is rather fuzzy, in reality, it's often synonymous with whatever economic woo its promoter is hyping. Sound money is often a cover for gold buggery, though it can mean whatever the hell the bullshit purveyor wants it to mean."

Did you get that from here?

http://rationalwiki.org/wiki/Sound_money

Seems like a very biased article. For example does sound money really need to be "backed by or pegged to some good or commodity".

In my view that article isn't very credible at all; seems more like propaganda.

I was hoping for a definition that says something like:

sound money is a currency that cannot be debased or counterfeited...




Yep ........... it says "the technical definition is rather fuzzy", so yeah, sure, go ahead and define it how you like, you don't need to "hope" Wink
Etlase2
Hero Member
*****
Offline Offline

Activity: 798
Merit: 1000


View Profile
December 23, 2013, 05:45:25 AM
 #5

I was hoping for a definition that says something like:

sound money is a currency that cannot be debased or counterfeited...

Modern economic definitions have not quite caught up yet with redefining everything in terms of bitcoin.

DavidZ
Newbie
*
Offline Offline

Activity: 56
Merit: 0


View Profile WWW
December 23, 2013, 06:02:25 AM
 #6

I was hoping for a definition that says something like:

sound money is a currency that cannot be debased or counterfeited...

Modern economic definitions have not quite caught up yet with redefining everything in terms of bitcoin.

I strongly suspect you are right about that.
empoweoqwj
Hero Member
*****
Offline Offline

Activity: 518
Merit: 500


View Profile
December 23, 2013, 06:15:56 AM
 #7

Feel free to redefine "sound money" to take into account bitcoin.

But honestly, I don't hear the phrase "sound money" that much, where do you keep hearing it?

DavidZ
Newbie
*
Offline Offline

Activity: 56
Merit: 0


View Profile WWW
December 23, 2013, 06:50:07 AM
 #8

Feel free to redefine "sound money" to take into account bitcoin.

Redefine it from what?


But honestly, I don't hear the phrase "sound money" that much, where do you keep hearing it?


Really? Do you only read mainstream media finance articles?

The phrase is used a lot in the Daily Reckoning for example:

http://dailyreckoning.com/why-the-feds-really-hate-sound-money/

empoweoqwj
Hero Member
*****
Offline Offline

Activity: 518
Merit: 500


View Profile
December 23, 2013, 11:04:52 AM
 #9

Feel free to redefine "sound money" to take into account bitcoin.

Redefine it from what?


But honestly, I don't hear the phrase "sound money" that much, where do you keep hearing it?


Really? Do you only read mainstream media finance articles?

The phrase is used a lot in the Daily Reckoning for example:

http://dailyreckoning.com/why-the-feds-really-hate-sound-money/



Redefine it from whatever definition you don't like.

I don't read dailyreckoning.com, sorry, never heard of it.
davidgdg
Hero Member
*****
Offline Offline

Activity: 528
Merit: 500


View Profile
December 23, 2013, 12:27:11 PM
 #10

The underlying idea is a currency that is not susceptible to large increases in its underlying quantity ("inflation" in the strict sense - as oppose to the more modern but less accurate meaning of inflation as rises in the overall price level).

There are three types of sound currency. 

1. A managed fiat currency that has a good historical record of not being inflated - e.g. the old deutschmark and (until recently) the Swiss Franc. In this case, the constraint on inflation is that the currency is managed by a central bank with a conservative ethos.

2. A commodity or commodity-backed currency  - e.g. the various versions of the gold standard. In this case the constraint on inflation is the nature of the underlying commodity which cannot be "printed" at will.

3. A currency that is inflation proof for other reasons - e.g. because of the nature of the underlying protocol -  bitcoin being the prime example (there are no historical examples that I know of).

The conventional usage refers to 1. and 2. But 3. also qualifies, since bitcoin is just as inflation proof as gold. Indeed in the long run, more so.

"There is only one thing that is seriously morally wrong with the world, and that is politics. By 'politics' I mean all that, and only what, involves the State." Jan Lester "Escape from Leviathan"
cdog
Hero Member
*****
Offline Offline

Activity: 812
Merit: 500


View Profile
December 23, 2013, 01:18:18 PM
 #11

can we merge these "is bitcoin money? / what is currency?" threads into one big one? this is getting ridiculous

edit: I pm'd a mod

DavidZ
Newbie
*
Offline Offline

Activity: 56
Merit: 0


View Profile WWW
December 23, 2013, 08:27:45 PM
 #12

can we merge these "is bitcoin money? / what is currency?" threads into one big one? this is getting ridiculous

edit: I pm'd a mod


Why would you want to do that?

The question of whether of not bitcoin is money and what is "sound money" are two different questions and warrant their own thread.
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!