On Objective Value and Price
Starting with the idea of value stabilization in relation to a domestic price index associated with the territory of one state, beyond that there is the natural and logical concept of internationally based comparisons.
The currencies being compared, like now the euro, the dollar, the yen, the pound, the swiss franc, the swedish kronor, etc. can be viewed with critical eyes by their users and by those who maybe have the option of whether or not or how to use one of them. This can lead to pressure for good quality and consequently for a lessened rate of inflationary deprecation in value
It seems possible and not unlikely, however, that if two states evolve towards having currencies or more stable value as measured locally by national CPI indices that then also these distinct currencies would tend to evolve towards more stable comparative relations of value.
Then the limiting or “asymptotic” result of such an evolutionary trend would be in effect “ideal money” but this as a result achieved without the adoption of anything like an ICPI index as a basis for the standard of value.”
…intrinsically free of “inflationary decadence”..a true “gold standard”, but the proposed basis for that was not the proposal of a linkage to gold~John Nash Ideal Money
I don’t share the same view as the narrative I am hearing about the recent events regarding Chinese exchanges and PBOC. The narrative still has bitcoin pegged as a coffee money and that is nonsensical. Bitcoin as a gold though, the way I understand it, would be a perfectly favorable response to Yuan devaluation from eyes of the Chinese rulers. I here people say “but it causes people’s money to leave China through fiat.” But what investment are we implying is doing better than bitcoin that is crushing the usd?
So there is some alleged uncertainty there but I would not understand why there would be a crackdown unless intelligence agencies do not exist.
Then there is talk about problem’s with different mining scheme’s and I think I heard today that india’s exchange rate is significantly different than the rest of the world.
My understanding is that we need exchanges for every currency/nation in the world (or at least the major fiats) and these exchanges must be secure enough to handle all of the stored wealth in the world. This takes time and evolution and bitcoin’s price will continue to test these exchanges all along the way until the markets feel there is enough confidence to switch over to securing our value with bitcoin.
This is different than what Nash proposes, what Nash proposes comes after this security is assured, when the price of bitcoin is stabilized.
The problem I think we are having (as a global community) is that we have no basis for value and so different people are using different words with different meanings. The “price” of bitcoin needs to be calculated by a secure market, for each respective fiat. The value of bitcoin doesn’t change, now there are caveats here, but the basic point is that there is price and value…
We want to start to discuss what is “value”, and how it can be objectively measured. That is the discussion that will change the world. Bitcoin as a coffee money is valueless, bitcoin as a digital gold is very stable in value (not necessarily price!) and that is something we have longed to have because it provide the basis for a solution to a very important problem.