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Offline Eylrid

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I would like to see a market pegged currency that is based on the gross world product (GWP) per capita. (GWP is the same as global GDP. See "Gross world product" on wikipedia)

1 BitGWP = (GWP)/(global population x 10,000)

Which means that the average human spends the equivalent of 10,000 BitGWP per year.

If GWP per capita goes down then the value of BitGWP would go down, encouraging people who hold it to spend. If GWP per capita goes up then the value of BitGWP would go up, encouraging people to save. If BitGWP became a significant enough part of the economy it should have a stabilizing effect, encouraging spending in lean times and saving in good times.

Wikipedia says that in 2012 the purchasing power parity per capita GWP was US$12,400. That means that in 2012 BitGWP would be worth ~$1.24.

What would it take to get something like this implemented?

Offline fluxer555

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Re: BitGWP: Idea for a currency based on gross world product per capita
« Reply #1 on: December 19, 2014, 05:40:20 PM »
What would it take to get something like this implemented?

A price feed, and demand.

Offline Rune

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Re: BitGWP: Idea for a currency based on gross world product per capita
« Reply #2 on: December 19, 2014, 05:53:17 PM »
You'd have to figure out a way to make the price feed for this (so basically a way to measure the GDP of all countries in real time...). Then convince 51 delegates to adopt it.

And then you just have to pay a relatively big fee to create the market pegged asset, and it will come into existence.

Offline arhag

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Re: BitGWP: Idea for a currency based on gross world product per capita
« Reply #3 on: December 19, 2014, 08:19:53 PM »
You'd have to figure out a way to make the price feed for this (so basically a way to measure the GDP of all countries in real time...).

While the world is still using currencies like USD (and EUR, CNY, etc.) you don't really need it to be real time. If you can measure it on a monthly or quarterly basis you can superimpose those shifts on top of something like the BitUSD price feed. The value of BitGWP (in BTS) would fluctuate in the short term based on the price of BTS in USD, but it would change over the long term because of the GWP measurements (priced in USD) made periodically and input into the blockchain (see further details here). Since USD is price stable in the short term, and the GWP adjusts the price of BitGWP over longer periods of time, I think this should give the desired result for BitGWP.

The problem is what happens if the world adopts BitGWP and USD, EUR, etc. disappear? If everyone is getting paid in BitGWP, it isn't clear what should even be put into the price feed. Perhaps at that point the price feed becomes unnecessary since the BitShares exchange drives the price of BitGWP/BTS. But with the price feed gone, only the free market is driving the price of BitGWP and it isn't clear to me how the BitShares network should be adjusting its supply according to the calculation of GWP (priced in BitGWP at that point).

 

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