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 Author Topic: Deflationary currency? Really?  (Read 8629 times)
wb3
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 Re: Deflationary currency? Really? March 31, 2011, 05:51:04 PMLast edit: March 31, 2011, 06:06:22 PM by wb3

Granted, because BitCoin is in fact a construct (like math, infinity, etc...) there is no end to its divisibility, unlike Gold, Silver, etc...

I may be wrong but my calculations put it at 21 Quadrillion not 210, but I did not recheck my math.

Let me ask though, when Egypt turned off the internet, what would the value of the BitCoin be, if you were holding them as an Egyptian?

What would the Value of Gold be if you were holding that as an Egyptian?

BitCoin will always hold a transitory value, but will be quickly converted into a physical one. Constructs are just that, Constructs. They are important to use, but hold no value In Real Life.

People use Math, but don't hold onto it after it is used to accomplish something. It is used to accomplish something and then discarded for what it was used to attain. Once the problem is solved, it is of no use to re-solve the problem.

I think you are right, and I think my math was actually off in a couple of places (so many fingers and toes and all that...)

It makes perfect sense to shift between different assets given different economic conditions (political upheaval, & etc...) but this is not an argument for/against Bitcoin, gold, dollars specifically. Rather, I see it as an argument for diversification, and an argument against some sort of mythical, universal currency.

If I could paraphrase (and possibly mangle) Robert Anton Wilson:

"Just give me a bag of Crack to keep my troops loyal and a sheet of Acid to keep myself crazy..."

Agreed, I think you are onto something. Money is just a transitory system to make "Bartering" more efficient. The real value is not in the transitory money but in the resources acquired with it.  Even with a single monetary system, the value of the single system would differ based on geology and closeness to the resources being sought. So a single monetary system would change its value by location.

I.E. \$5 dollars for milk in New York, \$3 for milk in Iowa.

Even with multiple currencies, location matters in the value of the monetary system based on available resources.

Gold is just the use of a Resource as a monetary system to simplify bartering. So it will always hold an intrinsic value.

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Legendary

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 Re: Deflationary currency? Really? March 31, 2011, 10:10:11 PM

I spend alot of money and I think I know a thing or two about money.

You might be very intelligent, but it is our experience that most of what people believe is true about "money" is wrong.  Much of it is counterintuitive.

For example; in a literal sense, I'd be willing to wager that you have never (directly) used real money to buy anything, and may not have ever even touched it.

US \$, Euros, Yen; none of these things are money.  They are currencies, as is Bitcoin.

"The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations. Each central bank...sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world."

- Carroll Quigley, CFR member, mentor to Bill Clinton, from 'Tragedy And Hope'
wb3
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 Re: Deflationary currency? Really? April 01, 2011, 01:50:22 AM

I spend alot of money and I think I know a thing or two about money. Ever since the recent economic crisis(which is caused by people spending money which doesn't exist) I think that people have in fact become more spiritually enriched. Losing money is not such a bad thing, people in the third world are in fact happier because they have their family and friends. Now that people are happier they will be encouraged to spend more and because people have less they will make what they have go further. I'm no mathematician but I think this is pretty obvious.

I think you might be right on the trend.

But remember the quote: "Man does not live on bread alone" does not imply that bread is not needed, so no matter how much inclination there is toward the spiritual, you must still acquire the "Bread".

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mizerydearia
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 Re: Deflationary currency? Really? April 25, 2011, 08:33:41 PM

If anyone is interested in contributing to alternative to Bitcoin, check out #Carrot (#Carrot-dev for development) on Freenode and maybe come help with development.  See http://weusecarrots.com/ as to why Carrot is better than Bitcoin.  Currently, no code is available.
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 Re: Deflationary currency? Really? April 25, 2011, 09:18:40 PM

So pizza should still cost 10kBTC?

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