News for hackers. Stuff that matters.

A comment on Bitcoin ‘Ought to Be Outlawed,’ Nobel Prize Winner Stiglitz Says. Parent comment

Re:Bitcoin ‘Ought to Be Outlawed,’ Nobel Prize Winner Stigli... by DennisP on Wednesday November 29, 2017 @08:02PM (#15812449)
I think it would be difficult to make an automated currency that does that. However, the overall cryptocurrency ecosystem is similar to the competing privately-issued currencies advocated by Hayek, who thought they would make a stable monetary system without any need for central control.
[ Parent | on HN ]
Re:Bitcoin ‘Ought to Be Outlawed,’ Nobel Prize Winner Stigli... by jnordwick on Wednesday November 29, 2017 @10:29PM (#15813242)
Not too difficult. You make a currency that is pegged to either a basket of commodities, a basket of currencies, both, our even just gold.

When the price of the basket goes above the original price (inflation) you reduce the mining reward (or in worse cases remove some of the coin from circulation in various ways). When the price of the basket falls (deflation) you increase the mining reward increasing supply.

You would need a trusted oracle, but that is no different than any other smart contract.

[ Parent | on HN ]