Please show me a donut shop that does barter
Explain, this is like something Michael D would come up with. How can money be a form of communication? afterall the 5euro note in my pocket contains no information, it does not tell me who owned it or what goods and services the previous owner did to earn it. Imagine if I knew it was owned by a criminal and was the proceeds of drugs sure that would undermine the basis for money in the first place. If it's not broken don't fix itMoney is a form of communication of the human species that conveys value from one human being to other human beings. It is information.
Explain, this is like something Michael D would come up with.
I 100% agree with that definition. It is an IOU from society that you can trust. I think the "inscribed" bit is important conveying as it does the analogy of someone signing an IOU. I am not sure how a village border meets the definition but as soddy remarks that is definitely in Michael D country.Professor Niall Ferguson defines money as "trust, inscribed. It does not matter what it is inscribed in - metal, shells, clay tablets, computer screens". All that matters is that the recipient or beneficiary of it trusts in its value.
I think the "inscribed" bit is important conveying as it does the analogy of someone signing an IOU. I am not sure how a village border meets the definition
I just don't believe that long term bitcoin can command a trust in its value.
Bit like the guy who paid 10,000 bitcoin for a pizza 10 years ago - these things happen
Clearly bitcoin has a bit to go for its medium of exchange credentials
it conveys the information of the amount and of who is in possession of it,
If someone hands me a fiver, I ascertain whatever information I can on the identity of the bearer from looking at the person, the fiver they are holding tells me nothing.
That will not be the key determinant. The key determinant is "volatility" with respect to a numeraire. The numeraire is the standard measure by which all else is judged. It is usually the local currency. And in fact it is very rare to find a situation where a retailer accepts other than the numeraire. I don't know of any shops that will accept dollars, for example. Of course a US tourist, for example, can transact fairly easily in this country by credit card but that is not the same as retailers accepting dollars.Is there a $ value where retailers begin to accept bitcoin as medium of exchange on a widespread scale?
The key determinant is "volatility" with respect to a numeraire. The numeraire is the standard measure by which all else is judged. It is usually the local currency. And in fact it is very rare to find a situation where a retailer accepts other than the numeraire.
All I was saying was that the a physical fiver is a bearer instrument, unlike for example a digital fiver.What? Fivers are doing introductions now?
If someone hands me a fiver, I ascertain whatever information I can on the identity of the bearer from looking at the person, the fiver they are holding tells me nothing.
Well, by definition a numeraire cannot be volatile against itself. If bitcoin achieved numeraire status then it would lose its volatility and we would be talking instead of, for example, the volatility of the euro versus bitcoin. We will never get there, and so IMHO bitcoin will never be a meaningful medium of exchange.I don't disagree with this but I sense you don't accept any prospect of the volatility emanating from local currency?
If bitcoin achieved numeraire status then it would lose its volatility and we would be talking instead of, for example, the volatility of the euro versus bitcoin.
But you highlight a different issue - the lack of confidence in the long term value of a currency irrespective of its lack of volatility.
Bitcoin will never be a medium of exchange in any meaningful way.
BTC/$ is very volatile, you agree. But we talk about BTC being volatile not the $. That is because the $ is the numeraire, the basic entity against which we measure other currencies. But the real numeraire are goods and services. We can see from the MSO data on the prices of latte that it is indeed much more correct to talk about BTC being volatile rather than the dollar.What do you mean by bitcoin's volatility against itself?
I have no idea what you mean - 1 bitcoin yesterday is 1 bitcoin today and will be 1 bitcoin tomorrow
obviously, the exchange 1 bitcoin v euro, usd, gold, or whatever is volatile
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