Today, 07:54 AM
The problem is banking, not currency.
If I had a way to participate in banking by depositing gold (or any other form of sound money) when I needed to, using it to make payments, and then pull it back out when I don't need it for banking, such a system would be naturally inflation proof.
Bitcoin fails to solve this problem as well, because ultimately, it's pegged to the currency it is exchanged for and is thus volatile due to speculation. If you pull your money out, you're just back in another fiat system.
You could easily build a reserve based banking system that allowed both gold and dollars. Such a system would localize currency issues to whoever decides to hold that currency and people would only be exposed to risk to the degree they kept there reserves in the system. Even that risk could be minimized by well thought out reserve transfer rules.
Anyway, no one ever discusses this because everyone thinks about the best "currency". It ain't currency. That's part of it, but the bigger more important part is the actual banking.
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