61
General Discussion / Re: How committed is the community to bitsharesX as opposed to the next "DAC"?
« on: September 27, 2014, 06:16:57 pm »Just like I said. Type "buying power of gold over time" into Google and the very first image that appears shows that the BUYING POWER of gold is highly volatile.I don't think it's as volatile as you make it seem, at one point people did use gold to buy things and that worked (kind of but bitGLD solves many problems physical gold has as a currency volatility not being one of them)
(In case you don't know this already, when you measure something in "1971 dollars" you are measuring the change in BUYING POWER. If you see the graph going all over the place, like it does in that picture, then you know that buying power is highly volatile. But seriously, you should know these basic economic concepts already if you are pretending to be knowledgeable about economics.)
People use BTC to buy things. That doesn't mean that it's not volatile. The chart shows you the volatility of gold compared to the volatility of the dollar. Gold is extremely volatile. Did you hear of the recent enormous crash in the value of gold, and the huge run up that preceded it? Gold is very similar to BTC in that it's intrinsic value for production is not what drives its value. Instead, what drives it's value is what people think that other people will be willing to pay for it. It would loose 95% of its value if tomorrow people just stopped caring about gold. (The last 5% it would retain because that it based on it's industrial value due to its special electro-chemical properties.) It's a social consensus. It's subject to run ups and crashes, just like BTC. It buying power is highly volatile.