Bitcoin as a unit of account
- Thread starter johnarb
- Start date
None of these features you mention have anything to do with why we don't use gold as a basis for national currencies anymore. If you really want to understand why Bitcoin is unsuitable as a national currency, you must study money in depth. Cryptocurrencies are their own unique thing. They can't substitute for national currencies because they haven't the necessary attributes.
The example of El Salvador is an example of a country without its own national currency. Bitcoin might possibly be as good there as adopting another countries currency (They adopted both the U.S. Dollar and bit coin as legal tender). A country without its own national currency is incapable of developing sufficient sovereignty over its own currency.
If you want to thoroughly understand money and why bit coin can never be suitable as a national currency may I suggest the best monograph (in English) on the subject of money written to date: "Understanding Modern Money," by L.Randall Wray. (I believe there may be available a newer version with a slightly altered title available at lower price.)
Last edited:
Ok. this is the biggest joke I have ever read on this forum. You're trying to tell a bitcoiner that they need to study money in depth??? Are you aware of the many books that Bitcoiners have written about the history of money?
Correct. A national currency needs to offer a corrupt government the ability to massively inflate the supply so that they are able to rob the citizens. The currency must also allow for arbitrary allocation so that governments get to choose who gets the currency first. What else am I missing?
When I wrote "If you really want to understand..." it seems I left out a necessary adverb (for this crowd). I should have written "correctly understand". I have read at least one of those many books on money written by Bitcoin enthusiasts. I read it on recommendation of one of you guys. It's "The Bitcoin Standard" by Saifedean Ammous. I found it well written. It got a glowing recommendation from Michael Saylor! And the Academic V.P. of the Mises Institute praised it as "...essential reading for anyone interested in learning the role bitcoin could play in a future regime of free and sound money." One can not argue with this statement, whatever it means. Ammous praises Bitcoin's value as an "attractive speculative bet", and it's usefulness for transferring money outside of governments' pervue, i.e., getting around government rules and regulations. But bitcoin as a replacement for national currencies, NO! To understand why that is you'll have to gain understanding far beyond what you'll gain from your favorite Bitcoin enthusiast's book on "Money".
I want to slip in one more comment here. It is surprising how many of those who today sing the praises of the "gold standard", including an amazing number of economists, reveal in their remarks a near total lack of understanding of the insurmountable problems with the gold standard and why it had to be abandoned and why a global monetary return to gold is not just unlikely but impossible.
Last edited:
If bitcoin was to replace National currencies, or if bitcoin was used to back national currencies, then governments would effectively lose their ability to steal from the public. So I can certainly understand how this is the last things governments want to do. But if that currency goes to zero, and if the citizens are suffering, and if the government wants to remain in power, it will be forced to change their tactics.
In the end, its the people who get to decide. Governments come and go, and currencies come and go. Throughout most of history, the people had a huge information disadvantage. Most didn't understand how they were being robbed by their own government. Today, there is a real good chance that for the first time in history, enough people become educated on the subject and will realize that a national currency backed by nothing is at the root of their suffering. Even if you never understand it, enough people around you will, and you too will get to benefit from this. Unless of course you are a corrupt politician or government worker, in which case, ya, you better worry about what's coming because your advantage is shrinking.
You have a viewpoint that will inhibit your ability to productively discuss these topics, or for that matter to productively contribute to them. Governments are reflections of human decisions and acts. Your complaint seems to be about human nature. Most of us have learned to except human imperfection, and thus we accept government as imperfect as it may be. Rather than concentrating on destroying that which is essential, most of us concentrate on trying to improve it, even though we know perfection is unreachable for no other reason than there exists no single idea of perfection.
Last edited:
Is that so? Ok.. tell me what inflation is. Tell me what it means when central banks say that they target 2% inflation. What they are saying is that they want my purchasing power to go down by 2% every year. More than this, and people revolt.
Inflation is just a tax. If there was no inflation, then governments would actually have to tax more in order to have more money to waste. It sounds better to just tax you at 30-50%, and then make up the difference with inflation.
But honestly, there is no point in arguing with you. Just move to a third world country where governments print like crazy and produce massive inflation, and you can learn basic principles first hand.
Most bitcoiners, including me, use bitcoin as 2. Store of Value
and 3. Unit of Account (the title of the thread),
for 1. Medium of exchange, we use fiat currencies. I do not use the USD as I am not in the US
Did you miss this important picture I included on my previous post?
Nakamoto's invention is marvelous in its way, but Bitcoin cannot and will not replace sovereign fiat money because it hasn't the necessary characteristics to fulfill the many roles that sovereign fiat monies must. And I fully agree with you when you write, "...there is no point in arguing with you."
Thank you for clarifying. You consider Bitcoin as a store of value. I hope for your sake it works out that way for you.