Enjoy the benefits of a premium membership!
Upgrade Account
-
TalkBass has been independent since 1998. Add your voice.
Create a free account to reply to discussions, view embedded media, and browse with fewer display ads.
Join free Log in
Want zero display ads or expanded classifieds tools? Compare plans.
Bitcoin Love
- Thread starter RedLeg
- Start date
nice to see a conversation happening. I just wanted to let the community know that I have bought strings and cables with bitcoin. I have bought groceries and even beers at bars too. I am hoping to see more TBer's accepting them in the classifieds.
Well OK, but there are a few issues there. The portability of gold/silver vs. paper money isn't even close. Perhaps not a big deal back then, as you could sling the bag on the back of your horse or wagon. More importantly, liquidity wasn't nearly as good--you had a lot more runs on banks (and depressions) in the pre-Fed days.In the old days, you could take your paper notes into a bank and exchange them for pure gold or silver, there's your portability. Nowdays, you can't, there's your "fiat currency".
The closest thing we have nowdays as a hard asset to base our paper currency on is the oil trade, and even some countries are trying to move away from that.
Will we let them? That is a whole 'nother topic, and probably not appropriate for TB.
I also don't believe gold to be quite the stable store of value that some do--despite its history--given its relative lack of utility and its extremely volatile price history since we went off the gold standard. Oil of course has a very practical use, but even there you have a lot of price volatility.
Finally, there is a debate to be had on whether the dollar's decline in value is due purely to the lack of gold backing or whether there are significant other factors, but that surely strays into verboten territory on TB.
I'm not so sure that Bitcoin, which routinely loses half its value in a day is an improvement.
The same is true of Bitcoin and gold. Gold has some other uses, but that's not really relevant if we're talking about its use as money.
Well OK, but there are a few issues there. The portability of gold/silver vs. paper money isn't even close. Perhaps not a big deal back then, as you could sling the bag on the back of your horse or wagon. More importantly, liquidity wasn't nearly as good--you had a lot more runs on banks (and depressions) in the pre-Fed days.
I also don't believe gold to be quite the stable store of value that some do--despite its history--given its relative lack of utility and its extremely volatile price history since we went off the gold standard. Oil of course has a very practical use, but even there you have a lot of price volatility.
Finally, there is a debate to be had on whether the dollar's decline in value is due purely to the lack of gold backing or whether there are significant other factors, but that surely strays into verboten territory on TB.
Good points, and could prove to be a fun discussion....and of course, verboten here.
No, gold didn't mean ultimate stability. IMO, at least the purchase platform used had some sort of "consistent" value. Prices soared and dived as usual, but at least the money used to purchase them wasn't "as volatile"*
* I wasn't alive in the 1800's.
Finally, there is a debate to be had on whether the dollar's decline in value is due purely to the lack of gold backing or whether there are significant other factors, but that surely strays into verboten territory on TB.
There's a debate here?
It's mainstream thought that one of the major advantages of fiat currency is that you can steadily inflate it. 2%/year is our government's target. The advantage here is that it allows the real interest rates to go negative during recessions, encouraging investment. Sure a loan at -1% real interest isn't very profitable but it's better than sitting on a pile of cash that loses value by 2% each year.
I don't think it's got much to do with a lack of gold backing. Simply that everybody who isn't a crank supports moderate inflation.
But let's say you head to the suburbs or a college town and want some scripts or some molly? It sounds like you are a tad out of touch with the youth these days. So ...um...yea, that's what you thought. If you could find the silkroad website, you would see what I am talking about. But it isn't about drugs or hookers. It is about a viable currency being used to purchase goods and services legally.
Actually, not to glorify it, but the drug trade is one of the last, true, "free markets" we have, because it is beyond control and regulation. Odd isn't it that supply is plentiful, demand is strong, and prices are such that both sides are getting what they want.
Actually, a very good arguement could be made that if regulation were removed entirely, prices would come down even further, supply would go up even more, and benefits would increase on both sides, no?
It's the same sort of cabal that's happening now with pharmacuetical drugs.....how is it any different? Pharma has beaureucrats in their back pockets just as mafiosos had g-men in their pockets in the old days....it's no different at all.
Well OK, but there are a few issues there. The portability of gold/silver vs. paper money isn't even close. Perhaps not a big deal back then, as you could sling the bag on the back of your horse or wagon. More importantly, liquidity wasn't nearly as good--you had a lot more runs on banks (and depressions) in the pre-Fed days.
I also don't believe gold to be quite the stable store of value that some do--despite its history--given its relative lack of utility and its extremely volatile price history since we went off the gold standard. Oil of course has a very practical use, but even there you have a lot of price volatility.
Finally, there is a debate to be had on whether the dollar's decline in value is due purely to the lack of gold backing or whether there are significant other factors, but that surely strays into verboten territory on TB.
As I understand it, there were periods of inflation and deflation when we were on the gold standard. Gold is a commodity, so its value fluctuates relative to other commodities.
I've been planning to invest in some to see how it works. I like the idea of a currency independent of the banks, although the banks don't like the idea too much.
And a commodity with relatively little real value (as compared to its market value) at that. It only has market value because governments horde it and create false scarcity. If the reserves of gold were available for industrial use, the price would be driven down to a more realistic value.
Why gold? It is the most malleable metal, so thousands of years ago, in the pre-industrial age, it was the easiest medal to make decorative ornaments with. It is also mostly non-reactive, so the ornaments would maintain their yellow color, when other metals were grey or silvery white, and many were reactive, so would tarnish or get a patina.
So we invest in gold because it is soft, yellow and non-reactive. That is a very rational way to decide upon our investments.
I accept Bitcoin for all my for-sale items here on TB, Craigslist, etc. Never had a problem with it.
I checked one of your sales, and you give your asking price in dollars. Would you give your asking price in bitcoins instead?
I see bitcoin kind of having as much value as arcade/laundromat tokens. It is accepted in very specific places and all others do not accept it as legal tender.
You could say the same about pretty much any currency that isn't USD..
My Australian dollars are essentially useless in the rest of the world unless I can find somebody who happens to want to take them off my hands in exchange for something. There are a few specific places that will do this for a fairly small fee, and probably a few other places who'd take the opportunity and do it for a large fee.
Actually, your Australian dollars are accepted by most banks worldwide.
I can spend US dollars in Canada and Canadians can spend Canadian dollars in the US. Businesses, stores and restaurants on border towns and cities accept each other's currency at a rate.
Bitcoin is not accepted by any banks.
