Steve Forbes: Bitcoin Not Money 692
MouseTheLuckyDog writes "A brief editorial by Steve Forbes, one of our moneymeisters, on why bitcoins are not money.. Hint: For those who are too lazy to read the opinion,. Bitcoins are too volatile to be money."
From the article: "Money is most optimal when it is fixed in value just as commerce is facilitated when we have fixed weights and measures. When you buy a pound of hamburger you expect to get 16 ounces of meat. An hour has 60 minutes. A mile has 5280 feet. These measurements don’t 'float.' So too money best lubricates commerce when it has a fixed value."
Re:Fiat Currency (Score:3, Informative)
It was that way, when it was still linked to the gold standard. It isn't anymore.
Re:Fiat Currency (Score:1, Informative)
The important answer is: whatever the government says it is worth.
Steve Forbes is an idiot, and he simply does not understand how money functions in an advanced economy. His idealized vision has NEVER existed.
Money is the primary projection of sovereign power. When a country collapses, so too does its currency. A sovereign is only as powerful as his ability to force people to use state currency, which is usually done through taxes. This is why tax collection was so important in ancient times - it literally was the only way cohesion of large empires was maintained.
Within a generation of the Roman Empire collapsing, and hence the tax man no longer being a problem, people stopped using currency and reverted to barter. In the 19th century, the British engaged in all sorts of social engineering to get Africans to work for money. It's really a counterintuitive thing that exists only due to outside coercion.
There is zero evidence that the Economics lie of efficiency every occurred.
Re:Fiat Currency (Score:3, Informative)
... the bankers who caused the problems paid for BHO's election/relection rather then being prosecuted...
The "banker" (financial institution) money went very heavily for Romney, not Obama, 3-1 in Romney's favor in fact [opensecrets.org]. Obama did not prosecute the numerous (extremely rich) malefactors in the Bush Crash it is true, but their attitude is always: "Well, what are you going to do for me now?!".