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Published on Mar 29, 2013
Subscribe to our newsletter at http://www.goldmoney.com/goldresearch. Episode 118: GoldMoney's Andy Duncan talks to Jon Matonis of the Bitcoin Foundation who is also a contributor to Forbes Magazine. They discuss Bitcoin's latest price spike and whether crypto-currencies are a credible alternative as a medium of exchange.
Comment:
GoldMoney is a gold vault operation, for want of a better term. This is their communication, which is amongst the ways in which they communicate with the world.
You can buy and sell gold there, with what they call gold grams, which represent 1 gram of gold. In comparison to an ounce, it takes about 30 grams to equal an ounce. GoldMoney's vault is located in the Channel Island of Jersey, near England, if memory serves. I traded with them there, on the internet, in 2007. I stopped fairly quickly that year when the US government started interfering, to my displeasure.
My contribution to the thoughts on this matter on the video is that since BitCoin is peer-to-peer, and a value is needed to establish what a BitCoin is actually is worth, then all is needed is some agreement amongst the BitCoin community as what that value of a BitCoin actually is. Now, if BitCoin is pegged amongst the community that it is worth so many gold grams, then you have achieved an objective value of a BitCoin, in my opinion.
Real currencies are set up by governments. A government is a group of people who exert authority and operate according to some kind of mutual agreement amongst them. In comparison, you would need to have a way to police a system, amongst the participants in that system. Now, a group of people can set this up and run it according to a charter they agreed upon. It can govern the system.
The video doesn't cover this, by the way. It is my own thought on the matter.
Anyway, here's the video
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