Jed,
"I know little about economics, but limiting the amount of money based
on the amount gold we have -- or the number of bitcoins -- seems like
utter lunacy to me. It never worked in the past. There are two reasons:"
Kurzweil seems to think it may be possible to break the Bitcoin
algorithm too.
Having the dollar value based on something with a fixed quantity
obviously will not work. The only thing in its favor is that the
central bank can't then screw things up. That being the case surely it
would be better to have it based on a basket of other currencies or at
least write some laws to limit money expansion to match some measure of
actual economic expansion. I know, I know, the politicians would find
some way around it whatever is done.
Adrian
