by Peter » Sat Apr 10, 2010 5:42 pm
Sometimes I wonder if the main inspiration for H&H was J&L lying around in their igloo or whatever it is they have in Sweden, and saying "Man, I like MMOs, but I'm tired of all the ones with fiat currency..."
As for the economics of it all, gold isn't really worth much for actual work. It's effectively a one-speed mint- outside of the fact that you can't change the rate (Or rather, the rate of production is on a fixed downward line), gold's not edible, and has only a few industrial uses, and is nearly totally useful as an intermediary. Industrially, it's probably as good as lead. That is, not useless, but not as useful as, say, aluminum or steel or uranium or carbon or hydrogen (whooo, definitely not hydrogen. I'd rather have a pound of H than Lg.)
I prefer a similar system, whereby $1 is worth a "basket" containing the average human being's daily needed calories, nutrition, clean water, and heat. Incidentally, a government using this system that can't provide for all of it's citizens would be effectively bankrupt because it would not have enough goods to back it's money.
Surprise.