Bending Bitcoin – The Principle of Hard Money
Good read, new piece by Ben Kaufman over at Medium:
Bending Bitcoin — The Principle of Hard Money
Hard money is one of the most well-known monetary terms used in practical discussions. From political discourses on policy decisions to the commentary debates of the financial sector, the term can be heard often enough to make even the ordinary citizens familiar with it. However, and despite its substantial use, while the concept of hard money has a very clear connotation to traditional fiscal responsibility with the monetary system, its exact definition is still quite vague. While for many, it is merely a practical term almost synonymous to a gold-backed system, its conceptual meaning clearly goes beyond that. For theoretical discussions then, it should be evident that, despite gold being for centuries the most accurate practical representation of the concept, it cannot be its very definition. Until today, in spite of the theoretical merits of adequately defining the term, such exact definition seems to have been quite unnecessary. For a long time, it has been established that assuming it as simply meaning a gold system is sufficient for all practical purposes.