My 2 cents about Sound Money

in #bitcoin7 years ago

We need sound money. Thats agreed.

But we don't have to start with Bitcoin as the ONLY money. Let me explain why:

People have dollar, Euro, etc.
Maybe there is 10 times more money in the balance sheets of banks than there exists value in the world.
So let then the dollar and the Euro be devalued by 90 %.
Thats a bitcoin price of 90000 USD per coin at its peak (!).
Can you imagine how unlikely it is currently, that bitcoiners will share a sufficient number of their bitcoins to keep that price below 90000 USD all the time?
But I will conceed that the smart people should profit to a healthy amount of their smartness. Lets say return should be 100 %. Then it is 180000 USD per bitcoin.
If you ask me, this is the absolute maximum tolerable bitcoin price until that point when all major currencies have been converted to publicly and provably countable cryptocurrencies.
More is not healthy for nobody. There is no good in disrupting everything that people are used to at once. It has never been.

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Of course, bitcoinization can continue after that switch to sound money. With the MayerMultiple we have a decent measure. Let us keep it at low levels around 1.5, maybe even a bit less, with spikes getting lower and lower.