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clout

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Currency as a Unit of Account
« on: March 03, 2014, 09:32:21 PM »

I believe that this article in informative on some of the shortcomings of bitcoin as a currency. Bitcoin has tackled the challenge of currency being a medium of exchange but has neglected its use as a store of value and unit of account. The concepts behind Bitshares on the other hand  solve the issues associated with a currency being a store of value as one can theoretically store value in whatever asset they want. Not enough emphasis however has been placed on the last use of money as a unit of account, which I believe is something that can be solved by bitshares also. I think that a future chian of bitshares should incorporate assets that are inflation-indexed so as to maintain their purchasing power even as the local currencies depreciate. One of the things that has always troubled me when studying economics is the divergence between nominal and real value. It seems to me that we have entered an age where the nominal space is no longer necessary and we need simply to concern ourselves with the real.

http://www.nytimes.com/2014/03/02/business/in-search-of-a-stable-electronic-currency.html?ref=business&pagewanted=all

Offline betax

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Re: Currency as a Unit of Account
« Reply #1 on: March 03, 2014, 09:46:52 PM »
Based on the article will that not be what eventually cryptocurrencies will be? Domain based currencies which value will be adjusted with their inflation. For example, if I rent my apartment I want to receive 500 RentCoins every month, mortgages fees, maintenance cost, etc will push their value up or down. Now my tenant can come here (BTSx chain) and bet accordingly.
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Offline Markus

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Re: Currency as a Unit of Account
« Reply #2 on: March 04, 2014, 12:22:35 AM »
I think that a future chain of bitshares should incorporate assets that are inflation-indexed so as to maintain their purchasing power even as the local currencies depreciate.

Well that's easy. What about BitBread or BitHourofwork? (of course with a proper definition of "bread" and "hour of work")

Offline unimercio

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Re: Currency as a Unit of Account
« Reply #3 on: March 04, 2014, 12:56:06 AM »
 +5%
I believe that this article in informative on some of the shortcomings of bitcoin as a currency. Bitcoin has tackled the challenge of currency being a medium of exchange but has neglected its use as a store of value and unit of account. The concepts behind Bitshares on the other hand  solve the issues associated with a currency being a store of value as one can theoretically store value in whatever asset they want. Not enough emphasis however has been placed on the last use of money as a unit of account, which I believe is something that can be solved by bitshares also. I think that a future chian of bitshares should incorporate assets that are inflation-indexed so as to maintain their purchasing power even as the local currencies depreciate. One of the things that has always troubled me when studying economics is the divergence between nominal and real value. It seems to me that we have entered an age where the nominal space is no longer necessary and we need simply to concern ourselves with the real.

http://www.nytimes.com/2014/03/02/business/in-search-of-a-stable-electronic-currency.html?ref=business&pagewanted=all
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Offline bytemaster

Re: Currency as a Unit of Account
« Reply #4 on: March 04, 2014, 08:33:03 AM »
Just wait until you see my latest video interviews and explanations I have in plan for Texas... :)
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Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

 

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