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What do Francisco d'Anconia and Satoshi Nakamoto Have in Common?

Posted by mshupe 4 years, 7 months ago to Economics
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Most important, sound money must be a reliable store of value. If money is expected to lose purchasing power over time, it will become less acceptable as a medium of exchange. This attribute of sound money transcends the here and now of trading values, and enters the fourth dimension of time and space. It becomes transferrable wealth, anywhere in the world, at any time.

The moral foundation of sound money is the productive work of its creator, stored as wealth, that has not been spent on other material values. Its moral purpose is to trade values with other producers, making it the keystone of civilization. In the modern and premodern eras, gold was the best global example.
SOURCE URL: https://www.centerforindividualism.org/francisco-danconia-and-satoshi-nakamoto-create-the-moral-case-and-practical-solution-for-sound-money/


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  • Posted by ycandrea 4 years, 7 months ago
    I don't know about "It can’t be changed. It can’t be argued with. It can’t be corrupted. If nuclear war destroyed half of our planet, it would continue to live uncorrupted." Bitcoins are not indestructible. Human minds can figure it out and destroy it. I think our monetary system should be something solid and tangible. Just my two cents.
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    • Posted by 4 years, 7 months ago
      Thanks, and that is obviously a quote, the opinion of a computer scientist. The bigger risk is the loss of electricity. If that happened, nothing else matters and we go back to the stone age. Of course Bitcoin is electrons (which can't be destroyed) organized by the human mind in the form of digital computer systems.
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  • Posted by $ Commander 4 years, 7 months ago
    The only dissent I have is that this is made by man. Computers can be hacked, data altered....this is the potential. These "representations" of value will be remanded to "Others"....the Fed?...only in representation to the type of organization. I don't refute the viability unless it can be commoditized as gold has become.

    The only solution I have pondered is the monetization of a human life. Very slippery slope, yet if, in principle, one had to "bet" on their life and that of others enjoined, "Monies" become very personal. I can envision accounts established, folks taking the day, week, month/s off.......and getting hungry....the most powerful motivator, to take by force or learn to enjoin equitably.
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    • Posted by $ jdg 4 years, 7 months ago
      This made me think of the Roman practice where you could sell yourself into slavery and the debt was passed on to your descendants... and once it was possible, crooked Senators found ways to squeeze people economically so that when the men had to go and fight wars, their families would go bankrupt and become slaves... I don't want us to go that route again.
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      • Posted by 4 years, 7 months ago
        Great example, and why government always has its hands in the fundamental necessities of life. Money, health care, education. Of course it starts with money. The root of all good is flipped into the root of all evil so government can protect us from ourselves.
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      • Posted by $ Commander 4 years, 7 months ago
        I think we are in the same state as 2000 years ago. This time the mechanism is debt to the banking system.

        I found out last week that I was a free, natural born citizen until I was 11. My folks wanted to open up a saving account for me. Requirement: Social Security registration. I was enrolled into The Corporation of The US as a child. My parents never realized or understood that this is a contract. As a member of The Corporation I agree to abide by the rules / laws of said. The Corporation has a contract with The Federal Reserve. The Corporation is indebted to the FED....I, and all the future generations who enroll in SSA are indebted. Economies have been manipulated to created terrible conflicts.

        The lack of teaching of this is intentional. This is also the only contract I can see that does not require an adult "legally" stature for engagement.

        Valid corollary?
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        • Posted by 4 years, 7 months ago
          Thanks for asking! You've got comparisons with ancient Rome, the Fed, and compulsory education. That's great, they are part of an integrated whole - decivilization. In Atlas Shrugged, Rand used the term "indifference." We've become conditioned not to question, and education has become a tool of the state for socialization, not critical thinking. Have you read her superb essay The Comprachicos?
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          • Posted by $ Commander 4 years, 7 months ago
            Hadn't read this....specifically. Just did a quick reference of the first 2 pages. I've seen this a hundred times in my life...at least.....the "programming".
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            • Posted by 4 years, 7 months ago
              The title of the essay comes from Victor Hugo's novel, The Man Who Laughed. Hugo made up the word to describe something absolutely horrid.
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        • Posted by $ jdg 4 years, 7 months ago
          You must be about as old as I am if you got to wait until 11. Today, children get registered in their first year, because otherwise their parents don't get the tax credit for having them.
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          • Posted by $ Commander 4 years, 7 months ago
            11 years ago my friends daughter was born. He specifically checked Do Not Enroll in SSI on the hospital registration paperwork. A month later he received a letter addressed to her from SSA with a designated number. He is educating his kids (3) as to what enrollment in this institution may have to do with their lives. When they attain legal adulthood they may elect to participate....doubtful.
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    • Posted by 4 years, 7 months ago
      Thanks for the feedback. Time will tell if Bitcoin's low flow to stock ratio can be hacked by rogue miners
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      • Posted by $ Commander 4 years, 7 months ago
        After a bit of thought...
        The present monetary systems need competition. Bitcoin is the most valid in it's representation to mining gold. Gold had limited use before industrialization....jewelry, coinage and solder. A "value" could be assigned based upon the effort / activity of tangible endeavor to find, mine, refine and store.

        What keeps Bitcoin from going Fiat? Humans cannot agree that there is more gold in a system. Humans can agree, through the mechanism of interest, there is more Bitcoin.
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        • Posted by 4 years, 7 months ago
          The beauty of Bitcoin is that it can only be produced by Bitcoin miners who solves complex computer problems faster than other miners. The reality is that one Bitcoin will have a huge value and must be subdivided into easily exchangeable units. It was established at the beginning that one Bitcoin will be denominated in Satoshi's at a ration of 100 million to 1. Eventually, a banking system will evolve to issue Satoshi and Bitcoin backed currency. That's the fractional reserve banking risk. Can you trust the bank issued currency? Here's the latest . . https://www.coindesk.com/bitcoin-ratt...
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    • Posted by 4 years, 7 months ago
      What do you mean someone betting on their own life and others enjoining? This idea reminds me of Thomas Jefferson. He sold lottery tickets to raise money to pay off his big debts. Of course the lottery had a payoff of much less than 50%, but people were willing to lose a little for a chance to win a lot. What you describe most likely avoids reality. People are productive based on their long-term aspirations and expected reward.
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      • Posted by $ Commander 4 years, 7 months ago
        The idea came to me in the form of having an account established at the birth of a child. I used an arbitrary value of 50k per year for 80 years of age. 4 million...instant deposit. Limited use of this account until "adulthood". A learning phase.

        If...big open concept....we had established a system of such what could / would happen in human interaction. And so, tomorrow this new system is established, lives are pro rated in the creation of these accounts. The first thing I envision is many not working...and the grocery shelves going empty. The first lesson is mortality tied to a medium of exchange. I can choose how to place my account expenditures, frivolously or not. Conceptually the idea of earning from a zero start to maintaining an existing are different enough to warrant thought.

        Most see "money" through an emotional filter, Mine. The next stage is of commodity, I see the third stage as of a Social Modifier.
        Using the idea of an account established at birth I certainly would be conservative in the first two contexts (betting my "life"), and cautious of the use by others in the third. I'd also be very cautious of enjoining others in activities / investments / developments requiring interdependence.

        One thought i have had regarding this is that when a life ends so does the account. Conceptually the pursuit of money for it's sake may diminish greatly. The pursuit of one's happiness, thematically, may increase. Just ideas.
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  • Posted by Owlsrayne 4 years, 6 months ago
    One EMP attack or CME direct hit the internet is toast, goodbye bitcoin. To me, precious metals make more sense as precarious world situations arise. with Covid19 affecting the whole world no more stock buying for me.
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  • Posted by $ jdg 4 years, 7 months ago
    Gold is better as a store of value, but that's exactly why the public will always hoard their gold and spend their fiat money as long as somebody will take it. That's called Gresham's Law. And it's only one case of a broader principle: As long as we continue to obey, governments will not stop doing any of the bad things they are doing.
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