I agree. If you think about it though, the value of an iPhone is dependent on how good the cell network functions, how many other people have smartphones and/or the internet, how expensive it is to charge it, etc. Some people may prefer to keep to themselves and reflect on their life without external input, making the phone relatively less valuable (to that person). So, it seems to me, the value of an iPhone is subjective and dependent upon context, just like anything else.
I agree that coinage or specie or whatever has often been a form of fiat. I also agree that laws setting the exchange ratio were deemed necessary by governments. However, I think you have mixed up cause and effect. The reason people could profit off arbitrage by going from one country to another was because the exchange ratio was set by governments in the first place. To deal with this problem (created by government intervention in the first place), laws and treaties were necessary to stabilize prices. This was seen as beneficial because it facilitates trade in the context of government issued coinage.
The reason governments attempt to set the gold/silver ratio is because they wish to inflate the value of their coinage, for obvious reasons. This is a losing battle against Gresham's law, which is why they eventually turned to issuing pure fiat.
With regards to goldrushes, etc; in the long run, these pretty much random events are far less harmful to an economy than giving politicians or bankers control over the value of currency.
But I may be wrong, I am still new to this field. I welcome any opposing argument.
Huh? It is preferable to Facebook. I'm sure they will just change their prices to account for inflation so I don't think it is ever preferable for the user to hold credits.
Usually, when people say "there is clear historical documentation of a free market solution" they turn out to be wrong and the government was giving out land grants or something stupidly. I do agree that it would seem like a waste for companies to lay down the exact same type of lines side by side, but I don't see why the government needs to be responsible for deciding who gets to lay "the last mile" when a new highrise, neighborhood, etc is being constructed.
It is a good idea. There is a "pump and dump" aspect to it due to the speculators treating it as a penny stock, but it is useful regardless of the exchange value for dollars. Whether or not the bitcoin project fails, the idea of a decentralized cryptocurrency is here to stay. It is just another example of people engineering a way around a problem. I am still confused by the hostile attitude of slashdotters towards it.
Bitcoin is bigger than ever right now. It is just that it has moved beyond creating bubbles by getting stories on slashdot. Recently there was a "The Good Wife" episode with the goal of doing that.
Gold certificates are clearly a scam. If there is a collapse of the USD, big investors who have friends with guns will get the real gold while average person #3,004,390 will be left with nothing. There are good reasons people have defaulted to using gold as a currency in the past though.
Why do you think laws setting the value of gold vs silver were necessary? I didn't really follow your reasoning. Shouldn't the value of gold vs silver vary according to supply and demand? If not, why not?
Historically, it has tended to be the commodity with the best combination of
1) Fungiblity 2) Ease of transfer 3) Ease of storage 4) Durability 5) Right combination of divisibility and rarity 6) Few alternative uses
So, as a currency, tobacco is preferable to cattle, paper is preferable to tobacco (until the entity creating the paper messes up #5, which it seems is inevitable). I think it is all an attempt to objectively quantify social capital.
I will sell small to medium transactions to people I feel are trustworthy enough in my mind based on a variety of factors.
I buy
MtGox USD MtGox BTC Btc PPUSD Paxum Giftcards
I also buy alt coins and other things at a less than market but decent rate.
I pay in
MtGox USD MtGox Btc BTC PPUSD Solidcoin Paxum Giftcards Facebook Credits Eve isk CashByMail (not responsible for items in transit) Western Union (You pay fees, Mon-sat 9a-7pm pst, not available at times) Others
I do not use
Liberty Reserve Dwolla MoneyBrokers Alertpay Virtual Credit Cards Virtual Gift Cards with some exception
Message me with what you are looking for and what you would like to trade in, I will contact you back and discuss what my terms are and if I wish to continue. Search my name in the Honest Trader section and rest of forum for rep.
It is the same as gift cards. They get the money upfront to invest, which is preferable because USD now is worth more than USD later. Plus many people will probably not spend all of their credits.
Many people feel net neutrality is a government solution to a problem created by government generated barriers to entry in the first place. I haven't researched it myself so I don't know how much of a role the government plays in creating ISP monopolies, but I wouldn't assume more regulation is the answer.
Slashdot Mirror
I agree. If you think about it though, the value of an iPhone is dependent on how good the cell network functions, how many other people have smartphones and/or the internet, how expensive it is to charge it, etc. Some people may prefer to keep to themselves and reflect on their life without external input, making the phone relatively less valuable (to that person). So, it seems to me, the value of an iPhone is subjective and dependent upon context, just like anything else.
But are these other commodities you mention as easily quantified, divisible, storable, transferable, etc?
I agree that coinage or specie or whatever has often been a form of fiat. I also agree that laws setting the exchange ratio were deemed necessary by governments. However, I think you have mixed up cause and effect. The reason people could profit off arbitrage by going from one country to another was because the exchange ratio was set by governments in the first place. To deal with this problem (created by government intervention in the first place), laws and treaties were necessary to stabilize prices. This was seen as beneficial because it facilitates trade in the context of government issued coinage.
The reason governments attempt to set the gold/silver ratio is because they wish to inflate the value of their coinage, for obvious reasons. This is a losing battle against Gresham's law, which is why they eventually turned to issuing pure fiat.
With regards to goldrushes, etc; in the long run, these pretty much random events are far less harmful to an economy than giving politicians or bankers control over the value of currency.
But I may be wrong, I am still new to this field. I welcome any opposing argument.
Well, if you say so.
Do you think of this as a definition? Or does it depend on the quality of the college education?
Huh? It is preferable to Facebook. I'm sure they will just change their prices to account for inflation so I don't think it is ever preferable for the user to hold credits.
Usually, when people say "there is clear historical documentation of a free market solution" they turn out to be wrong and the government was giving out land grants or something stupidly. I do agree that it would seem like a waste for companies to lay down the exact same type of lines side by side, but I don't see why the government needs to be responsible for deciding who gets to lay "the last mile" when a new highrise, neighborhood, etc is being constructed.
That sounds like the correct use of money. In contrast to basically being forced to spend it ASAP (if you are rational) due to inflation.
Don't let the door hit the horse you rode in on then. Problem solved.
I don't like giving my info to some online poker site (who would?). If they accept bitcoin I don't have to.
It is a good idea. There is a "pump and dump" aspect to it due to the speculators treating it as a penny stock, but it is useful regardless of the exchange value for dollars. Whether or not the bitcoin project fails, the idea of a decentralized cryptocurrency is here to stay. It is just another example of people engineering a way around a problem. I am still confused by the hostile attitude of slashdotters towards it.
USD appears to be a pump and dump as well.
Bitcoin is bigger than ever right now. It is just that it has moved beyond creating bubbles by getting stories on slashdot. Recently there was a "The Good Wife" episode with the goal of doing that.
http://tvrecaps.ew.com/recap/the-good-wife-season-three-episode-13/
Once you start looking into it you realize you are staring into the void and see the evidence all around you.
"Intrinsic value" isn't intrinsic, it is subjective and dependent on context.
Copper has more uses than gold...therefore it would be a poorer choice.
Interesting, who is loaning these companies money?
Gold certificates are clearly a scam. If there is a collapse of the USD, big investors who have friends with guns will get the real gold while average person #3,004,390 will be left with nothing. There are good reasons people have defaulted to using gold as a currency in the past though.
Why do you think laws setting the value of gold vs silver were necessary? I didn't really follow your reasoning. Shouldn't the value of gold vs silver vary according to supply and demand? If not, why not?
Historically, it has tended to be the commodity with the best combination of
1) Fungiblity
2) Ease of transfer
3) Ease of storage
4) Durability
5) Right combination of divisibility and rarity
6) Few alternative uses
So, as a currency, tobacco is preferable to cattle, paper is preferable to tobacco (until the entity creating the paper messes up #5, which it seems is inevitable). I think it is all an attempt to objectively quantify social capital.
Yes.
https://bitcointalk.org/index.php?topic=48285.0
It is the same as gift cards. They get the money upfront to invest, which is preferable because USD now is worth more than USD later. Plus many people will probably not spend all of their credits.
Which leads to the question... why do people buy tech products now if they are going to be cheaper later?
It is relatively easy to spot debt bubbles. I predict here that higher education is next.
Many people feel net neutrality is a government solution to a problem created by government generated barriers to entry in the first place. I haven't researched it myself so I don't know how much of a role the government plays in creating ISP monopolies, but I wouldn't assume more regulation is the answer.
I've met people who thought having a "fake" email address was "email fraud". Early 20s.