Bitcoin economics: primer on a volatile currency

jes

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Nov 11, 2009
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#1
Bitcoin economics: primer on a volatile currency

Bitcoin, the virtual currency composed of digital bits, is based on cutting-edge mathematical schemes that guard against counterfeiting. But it’s also based on an old idea, now dismissed by mainstream economists, about how a currency should operate – an idea that could be setting bitcoins up for an abrupt plunge.
 

chopsky

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Oct 12, 2003
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#2
The economics make sense, in the same way that the Gold standard made sense. It's merely a question of whether they can ensure 100% security in the near future and keep it out of regulatory hands.
 

krycor

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Aug 4, 2005
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#6
Gold standard made sense from perspective that your can't magically create money but as a result does have its limits. The current system is skewed heavily in politics such that we have the worlds largest donor being the biggest economy which makes zero sense. If every country was allowed to do as it pleases like that with similar guarrentees i'd like to see how the world would do
 

Garson007

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Jan 26, 2007
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#8
Don't get me wrong, fiat currency has its problems - the entire finance industry - but it's still preferable to deflation and people getting rich on saving.
 
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