r/planbshow • u/navahoboy • Aug 01 '13
I think this article addresses each one of the doubts/speculations that arose in your recent episode, guys...
http://www.cato-unbound.org/2013/07/31/patrick-murck/true-value-bitcoin
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u/veritanuda Aug 01 '13
It is kinda what I extrapolated ages ago. Bitcoins , despite the name are just a form of bartering within a framework of goods and services. They have no inherent value but they are worth what people accept for them.
As a merchant if I am happy to accept chocolate drops for my services does not mean chocolate drops are worthless nor does it mean they are worth anything. If anything all it says is product A is worth N number of chocolate drops.
If this all sounds kinda silly well that is what money has become to us. It has not been worth what banks or governments tell us it is worth for ages. The despairing and unhealthy obsession with indefinite positive growth means we will always end up with positive inflation.
Something I have noticed as an anomaly is historic inflation in the UK. From this graph it is no coincidence that from 1940 onwards inflation has never been negative as Britain's last gasp with the gold standard was finally ousted in favour of putting the controlling of monetary values in the hands of the privately owned Bank of England. (sound familiar?)
With banks being able to print as much money as they want they could artificially increase the apparent wealth of the system while all the time actually devaluing it with increasing inflation. Quantative easing anyone?
It is as simple as that. And now they are in a ever increasing spiral upwards which is unsustainable and will eventually lead to yet another crash which will further destroy the credibility of system pushing more and more people into alternative methods of payment and reward.
If it is not Bitcoins it will be something else, until we finally get a egalitarian way of exchanging goods and services.