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I hope this is really skillful trolling and not an actual belief you have about how economies work.
by aminok 10y ago
I hope this is really skillful trolling and not an actual belief you have about how economies work.
- dredmorbius 10y agoIt's similar to concepts from modern monetary theory (MMT). Which I'll add isn't without its critics. Money introduces the question of "how do you ensure that people want your currency?" A problem Bitcoin (and other cryptocurrencies or blockchain currencies) face. In the case of dollars specifically, demand is derived from: 1. The obligation to pay US taxes in dollars. 2. The status of the dollar as the international reserve currency. 3. The status of the dollar as the currency for all petroleum commerce. (Consider what would have happened to Saudi Arabia, Mexico, Venezuela, Russia/USSR, Kuwait, Iraq, and Iran, had their national currencies been the basis of their own oil trade.) There's also the economic output of the US itself, of course. But there's a tremendous intrinsic demand for US dollars as a consequence of this mandated trade. And yes, taxes are an element of this. Other national currencies have other bases, though not as broad a demand foundation as the US dollar.