From: doug@netcom.com (Doug Merritt)
Date: Tue, 19 Oct 93 07:57:29 PDT
To: cypherpunks@toad.com
Subject: Re: backing?
In-Reply-To: <pmetzger@lehman.com>
Message-ID: <9310191453.AA03155@netcom6.netcom.com>
MIME-Version: 1.0
Content-Type: text/plain


pmetzger@lehman.com said:
>Average inflation between the elimination of gold drawing rights and
>the banning of gold ownership by private citizens and 1970 were higher
>than in the immediate period before that. [...]
>Seems to be a pattern to me, buddy boy. [...]
>we should follow the historical models. Gold cannot be printed, is
>cheap to store, and is widely recognized as having value.

Just in case I was unclear: my point was that it makes sense to have
digital currency that is backed by gold, not just the other forms which
are not thereby backed.

I expect that lots of folks will support their own idiosyncratic forms
of digital currency in the future, somewhat similarly to the way that
banks used to issue their own paper currency, and that therefore there
will not be just a single kind of digital currency.
	Doug