SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Box-By-The-Riviera™ who wrote (142380)1/8/2002 8:10:18 PM
From: Siddhartha Gautama  Read Replies (2) of 436258
 
let's see if the Gilder quote can answer that question on bandwidth congestion...

"Critics of gold often cite as an alternative the increasingly efficient global movement of prices across the photonic webs and electromagnetic links of world currency markets. They say a gold standard has been rendered obsolete by a more complex and sophisticated Internet information standard. But information systems are governed by information theory.

Conceived by Claude Shannon in 1948, the real “information standard” is called entropy. Shannon’s entropy measures the information content of a message by its “news,” expressed in digital form as unexpected bits. It takes a low entropy (no surprises) carrier to bear a high entropy (newsworthy) message. Thus the electromagnetic spectrum is a supreme vessel for information because its waves are perfectly regular and are governed by the speed of light, which is absolute in any medium. “Modulations” (messages) are easily added at one end and detected at the other.

Although gold is not as stable as light speed or electromagnetic sine waves, it plays an analogous role in economics as a relatively low entropy carrier for crucial high entropy data about monetary policy. In the information theory of money, the 130,000 metric tons of gold available from all time represent the predictable ballast for a low entropy vessel that can bear unexpected news about the supply and demand for liquidity.

By contrast, without guidance from gold, currency markets resemble a communications system without a predictable carrier. Such free floating markets lack any objective means to differentiate the “news” (a change in monetary conditions) from the “white noise” of a thousand clamorous markets.

—George Gilder"
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News