Mises correctly points out that commodity uses of money create price distortions as fluctuating industrial demands push and pull on the shared supply. Hard money has always been associated with unique physical attributes — good for money, but also other industries. In this regard, gold’s incredible versatility across many different industries magnifies this harmful effect.
To solve (read: minimize) the ‘harmful’ effect of price fluctuation for the commodity backing a commodity-money, we can have … gasp! … multi-commodity money. Unfortunately that would require some sort of data ledger that could keep track of global material resource flows and rationalize global resource markets, … oh wait, … isn’t that blockchain?
It’s a really short mental leap from MCD (multi-collateral DAI) to MCT (multi-commodity token).
Why #TrashHash is Worth More Than All Current Crypto, Combined
(October 31, 2018 Update: here’s a screengrab from CoinMarketCap, showing USD valuation of the entire crypto market at…
And/or we can realize that ‘price distortions’ (aka fluctuations, volatility, etc.) are actually manifestations of perfectly normal market behaviors. Including fluctuations in the price of money itself.