Thanks for reading and commenting Joseph, much appreciated! A detailed response too, this obviously took you some time and it’s clearly a subject your passionate about!

I struggled with the inflation argument though and couldn’t find the figures you referred to anywhere (yes, I had a look just to confirm I wasn’t going mad!). It is — usually anyway — an accepted fact that the gold standard solves the problem of inflation and was certainly what I was taught in school. It holds up well under scrutiny — the inflation rate under the period known as ‘the true gold standard’ between 1880–1914 was only 0.1%. From 1913 the Fed came in and it all gradually changed until effective abolition in 1971, inflation has always been higher, sometimes quite a lot. If you can show me where this data is contradicting this, I’d be very interested to look at it. Of course, I acknowledge there are other problems with the gold standard, but that’s not really the issue here.

However, historical data is only a small part of the article, the future inflationary pressures are the key point which (I’m sure even you would agree) are going to be unprecedented. There’s few weapons left in the arsenal to control it once the effect begins in due course. I’m not even saying if it’s right or wrong — I’m not sure there was much choice — but my point is that for the first time in history the average Joe can make a choice about how they avoid devaluation of their wealth. Exit traditional banking by buying Bitcoin (or gold, but Bitcoin is easier) wait for the devaluation to happen and re-enter when it’s happened, for example.

The fractional reserve system has given us enormous growth and wealth over the last few decades and I’m not sure it’s fair to label it as a completely bad thing (although it certainly has a lot of problems), but an alternative such a Bitcoin working alongside that system sure provides a lot of options, especially to people who would not have any other realistic option otherwise.

And, like I said in the article, I don’t think I’ll be the only one who notices this!

Thanks for the debate and all the best

Jason

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I blog on things I am passionate about: Bitcoin, writing, money, life’s crazy turns and being a dad. Lover of learning, family and cheese. (jasondeane@msn.com)

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