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There's a big difference between a currency being "pegged" to another currency and being "backed" by another currency. I do agree that it would behoove his pro
by jnbiche 9y ago
There's a big difference between a currency being "pegged" to another currency and being "backed" by another currency.
I do agree that it would behoove his project to clearly enumerate that it's experimental and the risks involved. But that's a good comment for him, not a flag.
Edit: The article you linked to is incorrect, unless the word "pegged" is different in cryptocurrencies than elsewhere in the world of finance. Please see: https://en.wikipedia.org/wiki/Fixed_exchange-rate_system https://en.wikipedia.org/wiki/Fixed_exchange-rate_system
- wslh 9y agoWhat is a Pegged Cryptocurrency? https://themerkle.com/what-is-a-pegged-cryptocurrency/ https://themerkle.com/what-is-a-pegged-cryptocurrency/ You can decide to talk about stable coin approaches which is a more precise term.
- jnbiche 9y agoSorry, that's incorrect information. I've been to several countries that have pegged their currency to USD or to (long time ago) Deutsche Marks, without every claiming to the same currency in reserve. It leads to currency black markets, but it's possible to do and many countries have done it in the past. I mean, even China had a currency peg not too long ago. It was an enforced exchange rate, nothing more. No explicit reserve backing it up.
- wslh 9y agoNot in the cryptocurrency field. In this field pegging has a precise meaning.