dyna mo

analog currencY:https://www.google.com/search?q=anal...alog+currency+

umm, no USA isn't in the stone age re: digital transactions. please try and keep this a reasonable discussion. the dollar is currently the benchmarck worldwide currency.

Certainly you can't think that the country that backs that currency operates in the stone age re: currency. I suspect you merely assumed that since credit cards here are not chipped yet.

aka123

What US dollar being some benchmark has to do with US stone age payment systems and habits?

Backs currency? I use euros, USD doesn't back a shit regarding it, neither did the currency before that. You must confuse euro area to some old colony, that actually would more likely use GBP tied currency than USD.

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dyna mo

I'm not confused about jack shit You're the one claiming the USA is in the stone age because the credit cards are not chipped.

and you know what I meant by backed, the dollar is state supported official legal tender that is used worldwide for calculating prices and trading such commodities as oil.

no one in USA gives a fuck about your euros.

aka123

I said that in stone age regarding.. you know regarding something. I am not native English speaker, but I suppose it means regarding something.

Good that you don't give a shit about euro, as we don't give a shit about USD. This actually applies to pretty much every country (they don't give shit about each other). The difference is that people usually get that. Using USD for oil price, etc. is not that big deal. Just like using English is not that big deal to England (or maybe I am wrong). Well.. lets give couple hoorays for England.. Hooray! Hooray!, Hooray! You too, as you use English too.

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dyna mo

exactly right. so while it prolly won't be bitcoin, we both agree digital currencies have their place in the future. I doubt they will replace hard cash entirely.

AmeliaG

Like most economic levers, it is a teeter totter system. When a currency grows too strong, exports drop. The drop in exports decreases demand for the currency. Decreased demands weakens the currency. As the value of the currency drops, exports increase.

It is generally a cyclical system, not something which always goes in one direction.

I assume, when you talk about deflation, you mean the limit on the number of Bitcoin which will be mined, is that correct? What economic problems do you see stemming from Bitcoin gaining in value over time?

You are right that sea shells are out of fashion. A currency must be currently accepted to function as currency. You can't buy something for two bits in America any more, but that doesn't mean it wasn't currency in the Old West. The fact that I doubt my local restuarants would be pleased to take a gold doubloon does not mean it was not once currency, but it is out of fashion, so it is not currency now.

Currency is not some absolute thing. It is a currently accepted instrument, which is mutually agreed to represent a certain value.

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Dead

If i have never posted these words out loud,......I love your mind,....always have had a huge respect for you and the words you type on this ill forgotten board. Strong is understated.

aka123

First of all, currencies are not just some thing that fluctuates as it wills, it is more or less controlled and central banks are the keyplayers in this. It's fucking bad for economy if things fluctuate, thus preventive actions are used. Also about that cyclical thing, there are so much more things than pure demand those affects to currencies values. Just like with stock prices it is not just about pure demand, as price can change significantly with new information, even when demand is the same. Of course the demand for certain price range is not same, but demand for certain amount of stocks is.

But you are right, it's not some thing that just goes to some direction, as the goal is to keep it more or less stable at some level.

Yes, the main problem in Bitcoin is that its number doesn't increase with economy growth or demand. And it's not just about bitcoin, it's bad for any currency for being deflatory. You read about the quote from ECB? The simplified problem in deflation is that people don't use the money to pay things (what is money's main function), instead they wait it to grow value, just like huge number of Bitcoin owners do.

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PR_Glen

ahh you finally figured out your statement? congrats, next step lets see you crack the code of your electric bill!

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