Post by jalt on Apr 16, 2018 16:35:57 GMT
How can two parties communicate most effectively in order to fulfill the most gainful direction of dialogue?
Can both “players” interact so receptively that neither trumps the others important content? thewealthofchips.wordpress.com/2015/01/20/ideal-introductions/
Can both “players” interact so receptively that neither trumps the others important content? thewealthofchips.wordpress.com/2015/01/20/ideal-introductions/
I have written about this extensively here are some related writings and summaries:
medium.com/@rextar4444/a-neo-gold-standard-bitcoins-optimal-use-case-62d7fbb2f76f
I close the argument with the suggestion that central banks, acting in their own self interest of preservation, and central bankers acting out of the same, will in fact learn to better manage their supplied units of currency by targeting stability in relation to bitcoin-if they don’t they will lose their customers to the free market value competition bitcoin and emerging crypto-currency technology has created.
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Because the value of bitcoin is inversely tied to the quality of our traditional money system the co-operative effort of each nation optimally managing the “wellness” of their respective currencies will bring each of the currencies into a state of equilibrium in relation to the value of bitcoin. That is to say the concept of having truly Ideal Money, which is effectively the global value stabilization of our major currencies, could quite plausibly be expected to be brought about in the very near future (perhaps 2 or 3 years or more or less). The proposal then is that citizenry asks that their government’s mandate Ideal Money, money ultimately (asymptotically) pegged to bitcoin’s value, and to declare this endeavour and definition of money “well-managed” by fiat.
...
Because the value of bitcoin is inversely tied to the quality of our traditional money system the co-operative effort of each nation optimally managing the “wellness” of their respective currencies will bring each of the currencies into a state of equilibrium in relation to the value of bitcoin. That is to say the concept of having truly Ideal Money, which is effectively the global value stabilization of our major currencies, could quite plausibly be expected to be brought about in the very near future (perhaps 2 or 3 years or more or less). The proposal then is that citizenry asks that their government’s mandate Ideal Money, money ultimately (asymptotically) pegged to bitcoin’s value, and to declare this endeavour and definition of money “well-managed” by fiat.
An important advancement for our global civilization is the achievement of international stability of currencies. The goal is not stabilization of purchasing power, which is an impossible feat, but the removal of the political component of respective national money supplies.
We see this as achieved by either the scenario of Bitcoin becoming a ubiquitous global currency in conjunction with the hyperinflation of centrally managed national currencies, or via major central banks achieving international value stability between their national currencies by inflation targeting Bitcoin (ie stabilizing exchange rates).
In the scenario where central banks inflation target Bitcoin, it becomes comparable to the ICPI (Industrial Consumption Price Index) that in his works entitled Ideal Money, John Nash argued could be used as a central banking value target for the optimization of each nation’s money supply.
The ICPI is a decentralized array of regularly adjusted commodity prices. We observe that Bitcoin fulfills the necessary apolitical consideration that such an array of prices seeks to provide. Moreover, it addresses the necessity of a mechanism for regular adjustment, while avoiding the introduction of a political component.
This political component is avoided by the novelty of Bitcoin’s difficulty adjustment algorithm
We see this as achieved by either the scenario of Bitcoin becoming a ubiquitous global currency in conjunction with the hyperinflation of centrally managed national currencies, or via major central banks achieving international value stability between their national currencies by inflation targeting Bitcoin (ie stabilizing exchange rates).
In the scenario where central banks inflation target Bitcoin, it becomes comparable to the ICPI (Industrial Consumption Price Index) that in his works entitled Ideal Money, John Nash argued could be used as a central banking value target for the optimization of each nation’s money supply.
The ICPI is a decentralized array of regularly adjusted commodity prices. We observe that Bitcoin fulfills the necessary apolitical consideration that such an array of prices seeks to provide. Moreover, it addresses the necessity of a mechanism for regular adjustment, while avoiding the introduction of a political component.
This political component is avoided by the novelty of Bitcoin’s difficulty adjustment algorithm
A world in which centrally banked money is optimally managed is comparable to a world in which bitcoin is effectively global legal tender, and a world in which all central banks value stabilize versus bitcoin.
Each result achieves the goal of the proposal Ideal Money.
Each result achieves the goal of the proposal Ideal Money.
That central banks can and probably would (if their relevance was threatened) manage their money supplies in a way that would effectively remove politically caused distortion in local prices describes a scenario to the same favorable end as a world in which there is only one favored currency. This scenario is not a universal stability of purchasing power but the removal of distortion from the price signals our markets give which allow us to optimally distribute commodities based on their respective supply and demand.
From this re-solving perspective Satoshi’s implementation of a an e-currency, which is admittedly limited as an actually circulating money, still threatens to be the catalyst to bring about Ideal Money as described by John Nash which is the result of the end political intervention of the supply of money rather than what is often misappropriated as another foolish proposal to create money with stable purchasing power over time.
It is from this observation that by genius or dumb luck it can be said that Satoshi’s apparent misapplication of economic theory is quiet curiously auspicious. And I predict that as bitcoin’s market cap begins to encroach on gold, the narrative of bitcoin will turn towards a dialogue on whether or not it can serve as the premise to Nash’s argument.
From this re-solving perspective Satoshi’s implementation of a an e-currency, which is admittedly limited as an actually circulating money, still threatens to be the catalyst to bring about Ideal Money as described by John Nash which is the result of the end political intervention of the supply of money rather than what is often misappropriated as another foolish proposal to create money with stable purchasing power over time.
It is from this observation that by genius or dumb luck it can be said that Satoshi’s apparent misapplication of economic theory is quiet curiously auspicious. And I predict that as bitcoin’s market cap begins to encroach on gold, the narrative of bitcoin will turn towards a dialogue on whether or not it can serve as the premise to Nash’s argument.
