You are viewing a single comment's thread from:
RE: Bitcoin vs Dash - Which is the currency of the future?
How does Bitcoin work on the principle that value spent is value stored?
Currency is certainly subjective. I can buy much more with a dollar in Mexico than I can in Switzerland, and a dollar bought more in 1913 than it does today. That's because people assess the value differently depending on their situation and knowledge.
If you think that currency is not subjective, then try to tell me an evaluation of a dollar, or an ounce of silver, or any other currency, which does not change depending on time or place.
You mine for it, same for precious metals.
I know currency is subjective as we know it, does that mean it's not any more flawed? Before we had these currencies people used sticks and other ledgers to measure value. Currency purports itself as a measure of value, as a metric it abides in the same principles as every other metric, standards recognized everywhere no matter the time, and so you cannot inflate a ruler, no matter how many rulers there are they all measure the same thing.
Simply because there is no examples of currency in today's world which is Stable doesn't mean that currency shouldn't be stable. It most certainly cannot be both a measure of value AND a store of value, otherwise it is only commodity, is it not?
I suggest you go down the rabbit hole.
You mine for it, but that doesn't mean it relies on the idea that value spent is value stored. That doesn't follow. Precious metals have value because people see them as valuable, and it's the same with Bitcoin.
I'm willing to consider what you're saying, but I find it very difficult to imagine what you're describing.
A good currency should have stability, yes, and bitcoin has gained more stability over time. However, it would be very difficult for a currency to retain exactly the same amount of value, with one pound always and everywhere buying 10 loaves of bread, ten pounds always buying a ladder or something like that. Is that the kind of thing you're describing, or have I misunderstood.
I have no problem with currency being both a measure of value and a store of value, though obviously it's an imperfect measure of value because of the factors I've mentioned. I'd say all forms of money are commodities in some sense.
But it does rely on that false premise: value stored=value spent.
Please try it, define money and it's function, and please read everything on that bibocurrency website, you will see the fallacy for what it is:
money is either a reservoir of value/a commodity or it is a metric, a standard. It is very crucial that we understand the distinctions between an unstable system/one that appears stable and a actually stable system: Bounded Input Bounded Output.
I am not speaking about something abstract which is very hard to imagine, something else is happening. We don't have the definition of money or it's purpose, which is impeding any understanding really about what money does and what it should do.
-nesting limit-
You said that you spend energy to store energy, you spend energy to mine for gold, you have energy stored in the gold you mined. You spend value to mine for gold in return you have value in gold.
Precious metals have value because they are scarce, is what you are saying. Same with Bitcoin.
The definition you have of money is a fallacy: money is a measure of value, therefore it cannot have value itself, yet you attribute value to money itself because it's not money anymore, it is a commodity or a scarce resource.
A currency period is a measure of value, otherwise it is a commodity.
A measure of value will measure the same amount of value time and time again, everywhere, if it is indeed a measure and not a store/medium of value.
Either you are measuring value or are storing it, obviously you agree on some level that you cannot both measure a mile and store a mile.
To put it correctly: "I'd say all forms of money are commodities and not a measure of value."
You are faced with the same dilemma that most everyone faces when confronted with the definition of currency: which definition, whose definition..
" That's because people assess the value differently depending on their situation and knowledge."
Because the majority have no understanding of money or money systems. They have been conditioned to believe that this is the only way, and they believe this because they cannot even articulate what money actually is.
Try it. What is the definition of money, what is it's purpose.