Topic: Market Driven Money Supply.. - page 3. (Read 3792 times)

Yes - This is what I was thinking..

Aside from the technical difficulties, could you regulate the Money Supply if you knew the Price Of Gold, in the currency ?

Or - Which I can see a way of doing, could you regulate the Money Supply if you knew the Price of a Bitcoin .. ?

So that, if the Price of Gold/Bitcoins went up, you would print less..

If the Price of Gold went down, you would print more.

I think this is known as the 'Gold Price Rule'.  

http://www.forbes.com/sites/steveforbes/2013/05/08/heres-what-a-new-gold-standard-could-look-like/


Don't worry - no one is talking about 'wrecking' lovely bitcoin.. This would definitely be an Alt-Coin.

Just trying some different ideas out. Thinking out loud.. So many possibilities now that were not even thought possible BBTC.. (before bitcoin.. ;-p)

As I said in the OP, if you could take the Human element out of the equation, maybe some of this stuff is not soooo terrible..

I personally hate the idea and wouldn't have anything to do with it but I don't see why these people who hate Bitcoin and deflationary currencies can't organise an altcoin of their own like this that they like more rather than trying to usurp the currency and wreck everything. The code is open source and there for you to use and download, even if you don't have any programming experience you could always hire like minded people with Bitcoins to develop it for you and fix things.

I think the Freicoin altcoin is one of the only ones out there that comes close to what you're planning but that hasn't been a great success and because I follow a different economics school I'm just being smug about that and saying it's because of the kind of ideas you're talking about in the first place but again I welcome currency competition, it's just the critics of deflationary currencies that don't. Oh yes! I almost forgot infinite coin, that's an inflationary currency someone made too, it's not doing too great either, there's also stuff like Starcoin and Luckycoin which give out random rewards, so there's all kinds of experiments happening.

The short answer is "no".

The long answer is "How do you measure 3 of {M,V,P,Q} quickly and accurately enough to set the fourth?"

I suggest you have a look at eMunie.

I agree that relative wealth is key, but I am looking for a system with price stability of the goods in that system. A system that can use mathematically based money-supply 'inflation/deflation'. 

In a growing economy with fixed money supply the prices will always tend down. I am not saying if this is good or bad, I am just looking for ideas for a system that has a variable money supply.

One that grows and shrinks as the economy grows and shrinks.

It is already like this.

Since the only important thing is the relative wealth, what you can buy with that wealth does expand and contract depending on what is on the market. You don't need to change the numbers.

Hello!

Let's imagine a NEW economic paradigm.

Crypto currencies give us the ability to create ANY mathematically based currency, so I was wondering about a new type of coin.
 
Lets say, you want a coin that grows AND SHRINKS in number. One that if possible, responds to market forces.

Also - before anyone jumps in with the Inflation/Deflation is Theft Tirade.. If the growth is done FOR EVERYONE.. so that ALL coins grow and shrink, so that proportionally, your amount of coins remains the SAME, I don't think it is theft any longer. Printing and then giving it to a bank to redistribute, as they see fit, is Obviously, not cool.
(ie Alice has 1 coin, Bob has 10, Alice has 10% of Bob. Then 10% inflation. Alice has 1.1 coins, Bob has 11, Alice has 10% of Bob, still.. And Alice also retains her 1/11 stake in the entire coin, in both cases.)

I know there is an economic theory that says that the Money Supply should grow in line with Economic growth, and that this in turn would result in price stability. Unfortunately, measuring economic growth is harder done than said.

What I am wondering if there are any Market Driven Money Supply equations ?
 
For instance..

You could link the Money Supply growth to the Hash rate of the network.. ? (Don't like it..)

You could link Money Supply to the amount of TXN fees paid ? (Hmm.. still not into it..)

You could link it to the number of active accounts ? (Too easy to manipulate.. )

You could let the miners VOTE, in the coinbase (or somewhere) TXN as to whether there should be growth or demurrage ? (Not sooo bad..)

Does any one have any ideas as to how you might regulate the Money Supply Growth of a Crypto Coin in some pre-determined maths way ?

Oh &..Merry Xmas!