Can you make loans denominated in gold? I think you can. The volatility of bitcoin will settle down eventually. It's essentially the 19th century international gold standard for the 21st century.
> Can you make loans denominated in gold? I think you can.
Nobody does. Now why is that?
Friedman understood perfectly well that failure to increase the money supply in response to decreasing velocity was responsible for the Great Depression. He's sort of famous for that part, if I understand economic history correctly, it's why Bernanke apologized to Friedman's memory on behalf of the Fed. It seems odd to call them 'Friedman coins' when they depreciate automatically, but don't adjust to velocity and especially to changes in fractional reserve lending.
Probably executive order 6102 in 1933. By the time the government allowed private ownership of monetary gold again, it had fallen out of use as currency.
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> because the price is going up too fast to ever be paid back, and if it ever stops going up, people will be dumping it too fast for an interest rate
Is it implausible that these two forces would reach a relatively stable equilibrium, like stocks?
I think it is implausible.
What ultimately sets the price of stocks (and prevents undue speculation) is the profit earned by a company.
This mechanism doesn't exist in currencies, where the value comes only from what people think it's worth.
Can you make loans denominated in gold? I think you can. The volatility of bitcoin will settle down eventually. It's essentially the 19th century international gold standard for the 21st century.
> Can you make loans denominated in gold? I think you can.
Nobody does. Now why is that?
Friedman understood perfectly well that failure to increase the money supply in response to decreasing velocity was responsible for the Great Depression. He's sort of famous for that part, if I understand economic history correctly, it's why Bernanke apologized to Friedman's memory on behalf of the Fed. It seems odd to call them 'Friedman coins' when they depreciate automatically, but don't adjust to velocity and especially to changes in fractional reserve lending.
>Nobody does. Now why is that?
Probably executive order 6102 in 1933. By the time the government allowed private ownership of monetary gold again, it had fallen out of use as currency.
The world is a lot bigger than the scope of executive orders.