Bit coin has a cryptographically limited supply - there are only so many coins possible, and only so many can be made at a time per unit of computing power In theory you would have a clear relationship between real world production (CPU, power) and a stable exchange rate. This is not happening because either a speculative bubble (likely) or the real level of pricing is not yet priced in (not sure, that should be a kn…
Great read. Bitcoin can be a new gold standard. Probable. But that means someone has got to regulate it. To keep the prices stable so that it can be a standard for other currency. But bitcoin is unregulated and that's the main advantage of it. So either it can be a gold standard by being regulated, which defeats its whole purpose or remain as it is. You can't have your cake and eat it too. Edit: I highly doubt it can…
The fact that coins are allocated to miners is no different than good allocated to miners
I am not saying now is a good time to peg the dollar to the bitcoin. I doubt it would ever be - but the concept is viable I think - and that makes it feasible - a government could set its own algorithms, and peg to its own mathematically deflationary currency. That would be an interesting step forward