Reply to post: A fool and his money...

Parity calamity! Wallet code bug destroys $280m in Ethereum

YARR
Headmaster

A fool and his money...

That's quantities of money; this is actual currency. Different.

How different? The majority of money is numbers in a ledger (which has been electronic for the last 40+ years), cash is only a fraction of all money that exists: MB + M0 - M3 + MZM).

https://en.wikipedia.org/wiki/Money_supply

Value is more likely to be preserved if a currency has :

(1) Reliable ledgers.

(2) An entire nation / economy of workers who are contractually paid with that currency. (Who is obliged to accept bitcoin?)

(3) The issue of new currency (lending) is restricted to new assets that devalue slowly (not worthless used computer processing).

(4) New currency can be created according to demand. If supply of a currency is artificially restricted (like Bitcoin) or is tied to a rare asset (like gold), this can restrict lending and economic growth, causing people to switch to alternatives.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon