[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
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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