Tuesday, February 25, 2014

Federal Reserve and other central banks in a world of Promise Language and Bitcoin

Promise Language and Bitcoin do not define price.  They allow value to be translated efficiently.

Currencies stabilize price.  Salaries and rents and mortgages do not change on a daily basis.

In other words, things are priced in USD not in Bitcoin or Promise Language.  That is one reason why Bitcoin and Promise Language work so well to settle internationally.

Interestingly Second Market is patterning an exchange based on existing gold.  Price fixing with derivatives.  Second Market is bringing an antiquated structure to Bitcoin.  While it appears well hooked up and will gain liquidity, I have mixed feelings on that exchange.

Gold failed because of storage issues AND price fixing via derivatives settled in dollars.  Second Market appears to be setting up the exact same system.  Price fixing twice a day is not necessary for any reason other than to create derivatives to set the price.  Is Second Market's CEO aware of this problem or is he simply cut and pasting gold structure and creating a company?

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