[cryptography] Bitcoin, was Nirvana

James A. Donald jamesd at echeque.com
Sun Sep 25 17:14:32 EDT 2011

On 2011-09-26 5:13 AM, lodewijk andré de la porte wrote:
> The gold standard was fine as far as I know, as long as the gold flow was
> steady.

And when the gold flow was not steady, inflation and deflation was 
generally less than 1% a year.

I conjecture that the expectation that value of the currency would 
remain stable in the long term stabilized the value in the short term - 
that when there was asset inflation, people started to prefer to store 
value in gold, and when there was asset deflation, people started to 
prefer to store value in other things, such as housing, whereas the 
present value of fiat money is destabilized by the fact that its future 
value could drop a great deal.

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