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Introduction to Ideal Money and the Value Thereof
On the Relevance of John Nash's Ideal Money and Bitcoin
The significance of the works Ideal Money is observed when fitting Bitcoin as a basis for the proposal described (whereas economic philosophers may have previously come to conclusions for or against Bitcoin but without considering it in this particular role). Although an inquiry into what is money and more specifically what is ‘good’ or what is ‘bad’ money is relevant and even at some times critical to fully understanding the works, it should be understood that Nash’s proposal for Ideal Money very specifically refers to a scenario of a single monetary order as described in Ideal Money:
So my personal view is that a practical global money might most favorably evolve through the development first of a few regional currencies of truly good quality. And then the “integration” or “coordination” of those into a global currency would become just a technical problem. (Here I am thinking of a politically neutral form of a technological utility rather than of a money which might, for example, be used to exert pressures in a conflict situation comparable to “the cold war”.)
A process analogous to this occurred when a number of European countries passed first through EFTA, then through the EU, then into an “exchange rates stabilization” and then into the structure of “the euro” (which is based in Frankfurt).
The suggestion here is that “Ideal Money” with capital first letters as opposed to “ideal money” be used to refer to Nash’s concept of having the entire world on a single monetary order (as opposed to discussion on what would be the best or ‘ideal’ money medium or ‘ideal’ qualities a money medium could have).
The Ideal Money scenario described provides a single global pricing system which is deceptively extremely valuable. Nash points out "There is a tremendous value in simply having prices quoted conveniently".
Increasing the efficiency of our pricing systems increases the efficiency of our general transactions. This would be as if the fee to transact for general (ie all or most without considering edge cases) transactions were reduced. Here we turn to Nick Szabo who explains that efficiency gains that affect general ‘transport’ in a network have a ‘radical nonlinear impact’:
Metcalfe's Law states that a value of a network is proportional to the square of the number of its nodes. In an area where good soils, mines, and forests are randomly distributed, the number of nodes valuable to an industrial economy is proportional to the area encompassed. The number of such nodes that can be economically accessed is an inverse square of the cost per mile of transportation. Combine this with Metcalfe's Law and we reach a dramatic but solid mathematical conclusion: the potential value of a land transportation network is the inverse fourth power of the cost of that transportation. A reduction in transportation costs in a trade network by a factor of two increases the potential value of that network by a factor of sixteen. While a power of exactly 4.0 will usually be too high, due to redundancies, this does show how the cost of transportation can have a radical nonlinear impact on the value of the trade networks it enables.~Nick Szabo Transportation, divergence, and the industrial revolution
Extending the concept of globally stabilizing the inter-relational value of major currencies over time we consider contracts and contract formation:
A concept that we thought of later than at the time of developing our first ideas about Ideal Money is that of the importance of the comparative quality of the money used in an economic society to the possible precision, as an indicator of quality, of the contracts for performances of future contractual obligations.
And that a reasonably stable standard (as defined in Ideal Money) has long term beneficial economic implications:
…as the currency of the Sovereign tends to have less stability and less reliability of its value then the circumstances affecting the formation of business-relevant contracts become quite perturbed.
My point is simply that good reliability of the estimates of the future value of a currency, a “medium of exchange”, is favorable for the formation of contracts of a business-related variety.
Then it is understood that the works Ideal Money is the inquiry, explanation, solution, and ultimately the implementation of the solution, to the problem of bringing the world economy onto a single global monetary order as described by John Nash.
It should be noted here at least in short form that the above is generally NOT the pursuit of the present day economist, and that the reasoning as to how and why such a pursuit was or should be taken are not given here.
- Ideal Money
- Ideal Money Southern Economic Journal
- Ideal Money Revolutionary Reforms
- Ideal Money and the Motivation of Savings and Thrift (Honesty)
- Ideal Money and Asymptotically Ideal Money
- Ideal Money and the Motivation of Savings and Thrift (ultra)
- Ideal Money and Asymptotically Ideal Money (groundswell)
- Introduction to Ideal Money and the Value Thereof
- The ICPI and Bitcoin as an Ideal Money Basis
- Hal Finney's Theory of Bitcoin Backed Banks
- The Theory of Bitcoin Backed Central Banks
- The Nashian Orientation of Bitcoin: A Theory of Bitcoin and Money
- Ergo, Bitcoin is Nash's Ideal Money
- The Nashian Orientation of Bitcoin, the Axiom of Resistance, and Tail Emission vs. Drivechains as a Solution to the Security Budget Problem
- On Reverse Drivechains And Byzantine Encryption
The following is written to be read in descending order and also doubles as the modules for our nashLinterAgent:
- Bitcoin Most Certainly Violates Mises Regression Theorem and This Fact Compels Clarification or Re‐Solution from the Mises Institute; And An Introduction to Szabonian Deconstruction
- Of The Fatal Inconsistencies In Saifedean Ammous' Bitcoin Standard
- On Terminating Bitcoin's Violation of Mises Regression Theorem With Games as Pre‐Market Commodity Valuators
- On the Szabonian Deconstruction of Money and Gresham's Law
- The Bitcoin Community is a Sybil Attack On Bitcoin
- On The Satoshi Complex
- On Cantillon and the Szabonian Deconstruction of the Cantillon Effect
- Understanding Hayek Via Our Szabonian Deconstruction of Cantillon
- On the Tools and Metaphors Necessary To Properly Traverse Hayek’s Denationalization of Money In the Face and Light of Bitcoin
- On the Sharpening of the Tools Necessary As a Computational Shortcut for Understanding Hayek’s Proposal The Denationalization of Money in The Context of the Existence of Bitcoin
- Our Tool for Szabonian Deconstruction of Highly Evolved Religions
- Thought Systems As Inputs For Turing Machines‐Our Tool For Framing Metaphors Of Intersubjective Truths
- On the Szabonian Metaphorical Framework For Objectively Traversing the Complex History of Mankind
- On the Synthesis and Formalization of Hayek, Nash, And Szabo’s Proposals For The Optimization of The Existing Global Legacy Currency Systems
- On The Re‐Solution of Central Banking and Hayekian Landscapes
- On The Origins of the Digital Age of the Historical and Global Shadow‐Banking Empire
- On K, Chomsky, Language, and Human Existence
- Byzantine Encryption-Hayekian Compression Of a Machiavellian Field
- On Mapping Factors of Metcalfe Potential
- Constructions
- deconstructWrapsJal
- Esoteric Poker
- Satoshi's Implicit Commandments
rheomodeLinguist GTPAgent Demo
Bohmian Rheomode Modules
- On Rheomodes
- rheomodeExamples
- On Languages With or W/O Rheomodes and Their Shaping Of Our World Views
- On Rheomodic Truth
Rheomode Construction Examples
- On The Ordination of Bitcoin
- On The Covenation of Bitcoin
- On The Catenation of Bitcoin and the Quantum Extension of Such
- On the Runation of Bitcoin
- di‐vi‐nation
- On the Inscriptation of Bitcoin
- On the Volitation of Bitcoin and the Quantum Extension of Such
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(uses the ,Ordination and Covenation of Bitcoin modules from above, On Rheomodes, and The Origins of the Shadow Banking Field)
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uses a nashLinter chat which the notes below were fed into
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hiddenVarNotes
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consensusFieldPrompt
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On The Great Renumbering or the Great Re‐Numbering Or the Re‐Ordination of Bitcoin
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On the Origins of Inscriptions Ordinals Runes and Digital Artifacts as Defined by Casey Rodarmor
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On The Catenation of Bitcoin and the Quantum Extension of Such
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Example of Quantum Catenation of Bitcoin Development
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On the Runation of Bitcoin
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On the Generalization and Possible Transformations of the Byzantines Generals Problem
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Core and Bitcoin's Security Triad's Implicit Double Random Development Path Walk
- On the Synthesis of Bohmian Hidden Variables Consensus Field and Nash ProCooperative Game Theory
- BitcoinWrapsNashCooperation
- On Nash Consensus as An Extension of Nakamoto Consensus
- On the Nash Ossification aka the Nashification of the Bitcoin Protocol
- Byzantine Money
- On the Re‐Framing of Heisenberg Via The Synthesis of 3 Player Pro‐Cooperative Games With Base Byzantine Generals Problem
- Similarities and Differences Between Mankind’s First Flight and the First Moon Landing
- On Integrated (Body and Awareness) Rheomodic Therapy
- The Re‐Levation and Re‐Framation of The Snowden Revelations
- On the Simplification of Nash and Satoshi's Research Projects From 42 Variables to 21
- On the Di‐vi‐nation of Swan Bitcoin Mining
- On The Pan‐da‐nation of Global Manufacturing
- Are Greedy Wheat Grass Lumber (and Cattle) Farmers Responsible For Inflation and High Costs of Living
- On The Pan‐da‐nation of Global Savings In Sub‐prime Markets
- On The Quantumization of Bohmian Dialogue
- On Bohmian Re‐versation and Re‐Ordination
- Bohmian Holonomy
- Derivations For The Bohmian Holomorphic Nash Equilibrium
- Our Work as a Theory For Chomskys Language Inquiry
- Noam CHOMSKY on AI, ChatGPT, Universal Grammar and Wittgenstein Practical Wisdom Interview Transcript
- ChomskyTool