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RE: HBD is an Anchor on HIVE and Hive Engine

2 years ago

Bimetalism happens when one tries to combine the price of silver and gold into a single currency.

For a long time US dollar was pegged to a weight in silver.

The US attempted to peg the price of silver to the price of gold.

This meant that discoveries of silver and gold deposits would wreak havoc on the economy. Changes in refinement technologies also caused problems.

As I understand, most economists today think that it is best to let the price of commodities float.

Personally, I would start with silver. I wouldn't mind seeing both commodities on HIVE; so long as they are left separate to float.

!WINE

0E-8 BEE

2 comments

@jacobtothe75

2 years ago

Yes, the dollar was once defined in silver, and fixing gold to silver at a legislated ration made the real mess of bimetallism. If silver and gold can float against one another, all is well. Price discovery and responses to changes over time will tend to adjust toward equilibrium.

!BEER

0E-8 BEE

@beerlover64

2 years ago

^{View or trade BEER.}

Hey @yintercept, here is a little bit of BEER from @jacobtothe for you. Enjoy it!

If you like BEER and want to support us please consider voting @louis.witness on HIVE and on HIVE Engine.

0E-8 BEE