Anyone?
Did anyone understand what George Gilder meant when he told Craig he thought the supply of tokens should not be capped but that the price should be fixed? I'm still trying to grock how price can not be a function somehow of supply and not getting there.
Gilder mentioned how the time-value of gold has never changed. He said that though it requires exponentially more energy to mine it now, compared to during the gold rush, the same amount of gold is "produced" per unit of time. So, in a sense, they agree...
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17n1UjYJYSPFscU1rxZH2RX87vYx5BAi7z VerifiedThat didn't make sense to me, because of the inherent relationship between time and energy. Simplistically, it takes far less time (and energy) to pick up a sizable gold nugget visible in a mountain stream than it does extracting ore and refining that ore
I think he's speaking of the total gold brought on to the market per unit of time, not per unit of energy. You are right that it takes less of both to pick up a gold nugget vs. operating a gold mine. He claims the same amount is mined year after year.
I need to read his work, but that claim simply can't be true. Even if you attribute European inflation after the Spanish brought massive amounts of new world gold to Europe from pre-mined supply, gold rushes in North America also saw disruptive inflation
Agreed.
Guilder wants a fixed price (in terms of his theory of money = time) while Satoshi fixed cost within that theoretical framework: the energy required to mine BitCoin increases over time, but the same amount is mined per unit of time (1 block per 10 mins)
But... 1 block of now arbitrary size, which has no relationship to the total supply of indivisible tokens (i.e. satoshis aka abstract and tradeable time). Gilder wants a fixed price for each satoshi, and a variable supply. Suppose 1 satoshi = 1 minute...
I need to read his work as well, because there seems to be a similarity in their approach to the relationship between time and money, though from different angles, which struck me as interesting. Great question and stimulating conversation. Thanks.
Yes, very interesting to me as well and thanks to you, too.
First, good catch on the golf association...I was looking for his suggestion on what to pin it to, but never put that together, somehow. However, why do you say, “so, in a sense, they agree”? Gilder seemed to prefer unlimited bitcoin pinned to gold, right?
s/golf/gold/
Gilder argued for fixed price and variable supply, not sure he pinned it to gold. The fixed rate of one BitCoin block per 10 minutes is similar to how Gilder asserts the amount of gold produced per unit time, i.e., "time-value" of gold remains constant.
Ahh. Ok. Thank you for that clarification; I'm still trying to wrap my head around his perspective, as I feel like there is something to what he is saying. It's still not clear to me how it would all come together. If clear to you, please elaborate.
Likewise.