top | item 43469709

(no title)

nodoll | 11 months ago

>What distinguishes Bitcoin from Titcoin, another kind of cryptocurrency which also is with a 'capped supply'?

The presence of a growing community that are willing to accept it for good and services.

> why the gold-standard died..

You don't want the entire economy of a country to be based on capped assets. That would limit the size of your economy. But such assets can work well as a reserve. Gold works because of its intrinsic value, and is not dependent on the presence of a community that accept it. But its intrinsic value can disappear overnight. Bitcoin works as reserve because of the presence of a growing community that accept it, and is dependent on the community. But its value would not disappear and is only decided and ensured by the community.

So it really a matter of reaching community wide consensus. Bitcoin have it right now and there is no fundamental reason why it would lose its value. Sure governments can ban it, and it ll lose its value. But if the government itself is holding reserves in it, then we can be pretty sure that that would not be done.

So to answer your question, gold standard died because it would limit the size of the economy that it can support, because supply of gold is limited.

discuss

order

No comments yet.