RE: Gold or Bitcoin, What Would You Choose as Money?
Neither of these are money. They are commodities that people use as a store of value. In order to be "money" you need to be able to buy things with it directly and that means closing the entire loop.
Right now there are lots of places you can "spend" bitcoin, but the fact is none of them really accept bitcoin. They accept dollars or pesos or whatever, but they let you give bitcoin to someone else who will then give them their dollars.
Money is and can only ever be worth what you can buy with it. By trying to tie to something which you believe has intrinsic value, but really only has perceived scarcity value, you detach from the marketplace entirely and you really are just hoping that someone doesn't make a breakthrough.
Aluminum is a good example of this. It used to be rare and valuable and only something the very rich could ever afford. Then we found more mines, and invented better, more efficient extraction technique and now our biggest problem with Aluminum is trying to keep it out of landfills.
There are asteroids not too far from earth. Some of these asteroids have more gold and other precious metals in them, than have ever been extracted in all of human history.
When this happens, the biggest problem we'll have with Gold is trying to keep it out of the landfills.
That's what's meant by a commodity.
Bitcoin is no better. The only thing it has going for it right now is inertia effects and first mover advantage. But DASH and ETH are eating bitcoin's lunch right now to say nothing of the 10,000 other alts.
VIVA or something like it, will make the whole argument moot anyways, since our goal is to completely close the loop on finance by removing governments and banks from the equation and putting that money back into the pockets of people. But we allow and encourage people to continue dealing in what they understand best. Their local fiat.
At the same time we encourage people within the VIVA economy to hold, trade and play with whatever currencies they want.
Excellent post though! It makes people think. I upvoted it.