[108195] in Cypherpunks
RE: CDR: DigiGold
daemon@ATHENA.MIT.EDU (Matthew James Gering)
Mon Feb 8 15:47:54 1999
From: Matthew James Gering <mgering@ecosystems.net>
To: "Cypherpunks (E-mail)" <cypherpunks@cyberpass.net>
Date: Mon, 8 Feb 1999 12:27:25 -0800
Reply-To: Matthew James Gering <mgering@ecosystems.net>
> >borderless world of Internet commerce. DigiGold, unlike
> >all payment systems involving national currencies, is
> >also completely independent of any national banking system.
>
> Ah well? Now, guess what would happen if one of the major national
> banks decided to sell its gold?
This is why some people have chosen to use silver instead.
The Internet greatly reduces transaction latency, so as long as you are able
to quote, initiate and complete a transaction, and move the proceeds to a
suitable store of value in a time frame in which the value of transaction
medium is stable, you are fine. Theoretically this could be measured in
milliseconds, allowing you to transact in traditionally very unstable
currencies. Liquidity and low latency actually become more important than
stability.
Regarding store of value, generally you want to balance assets and
short-term liabilities in the same currencies -- it would be rather dumb to
have all your assets in gold and liabilities in USD. But if you wish, you
could even instantaneously move all your assets to MS$ (currency denominated
in Microsoft shares).
Matt
