Well, technically speaking the problem is not so much that the Federal Reserve can simply print more money, but rather - the problem is the legal tender laws combined with the threat of government-approved force that gives citizens no alternatives.
A full return to gold and silver as legal tender, with implicit allowance for competing currencies, could still accomodate a central bank. It's just that if they let their interest rate go below the market rate, everyone will switch over to the more sound currency - an option not available to us now (due to legal tender laws).
So, one or more competing fractional reserve currencies alongside gold and silver as legal tender, are fine.
Topic: The root of the problem! - page 2. (Read 3600 times)
Bitcoin is regulated by technological fiat, instead of government fiat.
So far there has been a decent consensus that the current bitcoin inflation policy is a good one.
If the consensus were to shift, nothing prevents changing the formula in the future.
So far there has been a decent consensus that the current bitcoin inflation policy is a good one.
If the consensus were to shift, nothing prevents changing the formula in the future.
agree 100% with OP. +1. BUT... prove to a non techie that bitcoin cannot be counterfeited. The bitcoin system requires faith also. For all granny knows, some hacker is out there in cyberspace creating bitcoins on his palm pilot.
Real money can be printed infinitely and it's only backed by assurements and faith.
Bitcoins, gold, silver are scarce.
I.e. there is a very finite amount of them in the existence. Some precious metals also have real world utility that no other metals can match.
Banks or governments can't control the price of those commodities. They have tried to ban their ownership by private individuals (at least in the US) which only caused hoarding and further appreciation in value.
Similarly, bitcoins have anonymizing properties that no other digital currency can match, and you can transport them across the world in a split second.
Correctly used, the owner of any single bitcoin is 100% impossible to trace.
Bitcoins, gold, silver are scarce.
I.e. there is a very finite amount of them in the existence. Some precious metals also have real world utility that no other metals can match.
Banks or governments can't control the price of those commodities. They have tried to ban their ownership by private individuals (at least in the US) which only caused hoarding and further appreciation in value.
Similarly, bitcoins have anonymizing properties that no other digital currency can match, and you can transport them across the world in a split second.
Correctly used, the owner of any single bitcoin is 100% impossible to trace.
Clearly you are a terrorist! ;-)
Real money can be printed infinitely and it's only backed by assurements and faith.
Bitcoins, gold, silver are scarce.
I.e. there is a very finite amount of them in existence. Some precious metals also have real world utility that no other metals can match.
BTC, AU and AG are not backed by anything. They are the backing itself.
Banks or governments can't control the price of those commodities. They have tried to ban their ownership by private individuals (at least in the US) which only caused hoarding and further appreciation in value.
Similarly, bitcoins have anonymizing properties that no other digital currency can match, and you can transport them across the world in a split second.
Correctly used, the owner of any single bitcoin is 100% impossible to trace.
Bitcoins, gold, silver are scarce.
I.e. there is a very finite amount of them in existence. Some precious metals also have real world utility that no other metals can match.
BTC, AU and AG are not backed by anything. They are the backing itself.
Banks or governments can't control the price of those commodities. They have tried to ban their ownership by private individuals (at least in the US) which only caused hoarding and further appreciation in value.
Similarly, bitcoins have anonymizing properties that no other digital currency can match, and you can transport them across the world in a split second.
Correctly used, the owner of any single bitcoin is 100% impossible to trace.
+1
Folks,
The root cause problem with today's economy is that money can be created out of nothing and used to buy up real world goods and services and that this right is legally centred (monopolized) with only a few people. Everything else; high frequency trades, resource miss-allocation, decreasing real wages, inflation, deflationary collapse, oil prices, expensive wars (most of the modern ones) etc. etc. etc. is just symptomatic. If this right was taken away from the banking-government elite I dare say most of the shenanigans would stop within a year. Of course a soft landing would be hard to guarantee.
Why do you think Satoshi created bitcoin?
The root cause problem with today's economy is that money can be created out of nothing and used to buy up real world goods and services and that this right is legally centred (monopolized) with only a few people. Everything else; high frequency trades, resource miss-allocation, decreasing real wages, inflation, deflationary collapse, oil prices, expensive wars (most of the modern ones) etc. etc. etc. is just symptomatic. If this right was taken away from the banking-government elite I dare say most of the shenanigans would stop within a year. Of course a soft landing would be hard to guarantee.
Why do you think Satoshi created bitcoin?
Jump to: