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View Diary: Money, Control and Power: M-Pesa, Bitcoin and Kipochi (29 comments)

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  •  But the point of being backed by a commodity (1+ / 0-)
    Recommended by:
    katiec

    is that (at least theoretically) it externally imposes a limit on the supply. The government can't just "print money" in unlimited supply, because it doesn't have the capacity to convert it to the backing commodity.  At least, as I understand it, that's the point so far as people who rail about the evils of fiat money are concerned.

    There are of course other views, like this Forbes article arguing All Money Is Fiat Money which make more sense to me.

    “What’s the use of having developed a science well enough to make predictions if, in the end, all we’re willing to do is stand around and wait for them to come true?” - Sherwood Rowland

    by jrooth on Tue Jul 16, 2013 at 08:25:56 AM PDT

    [ Parent ]

    •  It's all an endless argument. (2+ / 0-)
      Recommended by:
      jrooth, katiec

      I don't think it really matters.

      The G prints as many dollars as it dares.  Bitcoin will never reach more than a certain number.

      It's one of the few, real-world and non-theoretical economic experiments ever conducted.  Mostly, economics is a field of theory and interpretation and intuition.

      And bitcoin is fascinating if for no other reason than that.

      It ain't called paranoia - when they're really out to get you. 6 points.

      by Jaime Frontero on Tue Jul 16, 2013 at 08:48:48 AM PDT

      [ Parent ]

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