Ok gold backed digital currency will be an easy way to trade back and forth on sony everquest and ebay - but now lets get to the store of value point - that is the critical issue.
What can gold do for me? store value? Ok - what value? I value knowledge, entertainment and energy. Gold will store that for me? A book will store that for me - like my physics book, a DVD - like my 3 stooges collection, a barrel of oil or a candy bar so I don't pass out from low blood sugar, but gold stores none of those 3. What are u thinking - we can link the value of those things to gold - take a tally of all the barrels of oil in the world and say ok x amount of barrels of oil equals 1 ounce of gold which equals one digital coin - I am saying why involve gold at all - just skip the metal and say 1 barrel of oil equals 1 digital coin. Why put gold in the middle? It does not make sense to me. There is no reason to do so - if we can get ebay to standardize on a digital coin - that will be what we trade. Paypal is used by a lot of people these days. There is no reason to have anything in the middle - gold, green paper, sea shells, indian beads etc etc.
Some geeks will trade digital coins based on the amount of time each coin represents on everquest - say 1 coin lets you have 10 hours of play on everquest.
Think about the needs of an average geek in the future and what he wants and needs to be happy. The daily things we will keep needing to absorb. He will need a small room(space), with a toilet(output), and a sandwich and coke(input), a source of energy for his equipment(input), a net connection(communication) and time. Where is gold part of the supply chain in any of those? It's not - I will trade you space I own maybe for time you own, like give you a room for a month for your saved 1 month of time on everquest servers. You may give me a sandwich if I supply you with internet connectivity.
Maybe you will give me a three stooges DVD and I will give you the latest copy of Zelda for the gameboy - coconut will send me the latest pictures of her old dad chen with his gray beard and I will send her daughter a copy of the latest song by brittneys daughter.
In none of that barter back and forth does gold need to be inbetween us. Look at the issues being discussed at some of the money conferences they have around the globe - it is how we create a digital coin, and put it in a card or some device and how we make it safe and not easily stolen or counterfieted - that is where the research and time is flowing right now - the digital coin itself will be the store of value - it will not have to be linked to gold or green paper or beads or sea shells - it will be the trade unit of value without any linkage. So fast forward 10=25=50 years - space, input, output, energy, time, and connectivity. What will we run out of as more people come online and want to blow jay chen up in deathmatch? space? we will have plenty for all this new building - hehe - food and sewer systems? time? energy? where are the bottlnecks to this future of trade for 12 billion people getting on the matrix and playing in the virtual world all day? There is just no need to link the digital coin to physical gold. gold will be as useless as seashells and indian beads for future trade on sony everquest and ebay.
My niece did not VALUE the gold chain I gave her, she valued the dvd's and cd's and games she could trade it for at the pawnshop - now she trades those dvd's and cd's and games back and forth with her friends while the gold collects dust at the pawnshop. |
