Sunday, 28 April 2013

Why Bitcoins?

The question for today is why do we need a fixed supply monetary standard like gold. Gold would be the ideal in some ways excepting that physical quantities of gold can easily be seized by government. This is the reason for Bitcoin. Bitcoin is modeled on a gold-based system and not in interventionist gold a system. It mirrors Murray Rothbard's 100% gold standard but in a manner that is technologically superior and provides the required system for the coming technological changes.

We are entering an era of intellectual property. As I've written previously there will be predominately intellectual property in our economy. The basis of manufacturing and life as we know it will become one based on the transfer of data.

Their are many detractors on gold as a standard. What most of them do agree is that gold remains one of the best forms of currency in international transactions. This remains one of its primary uses.
Again, the difficulty comes from the necessary requirements and moving gold and the ability of sovereign governments to manipulate these movements.

Bitcoin is an ideal international currency transaction medium. It mirrors gold but also alleviates many of the primary issues associated with gold.

The world of the future will be one of hyper globalism. A small scale programmer in Kenya with limited capital resources will be able to compete for market share with the largest international corporations. The only way to do this is to have a decentralized fixed currency system.

This is what Bitcoin is.

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