JP Koning and the digital currencies

JP is not yet with the theory of everything. Talking abut the new money technology he says:

The whippersnappers who work in the cryptocurrency domain are moving incredibly fast.

As I've been saying for a while, assets like bitcoin (or stocks) are unlikely to become popular as exchange media; they're just too damn volatile relative to incumbent fiat currencies. There's a new game in town though: stablecoin. These tokens are similar to bitcoin, but instead of bobbing wildly they have a fixed exchange rate to some other asset, say the U.S. dollar or gold.

Not so. Self adapting statistics manage volatility as an internal variable, nature prices volatility fairly. In the case of Banker Bot, the technology insures bot to bot exchanges with hardware security, and the banker bot guarantees the honest transmission of the volatility measure. So all exchanges are weighted by volatility of the underlying probability distribution.

The new currencies are backed by one thing, secure and honest exchanges between bots and extremely low transaction costs. That is enough, honest currencies will proliferate and find their utility, from gambling to internet games to product discounts to tax collection. They pop up when a group needs pricing, and can disappear when the task is done.   Nothing stops the new set of currencies once we get a fully functional and hardware secure banker bot in our smart cards.