3 ms·
No, because the value of controlling a fiat currency is that you can issue more. It is not any one crypto currency that is a threat, but the idea. To kill the i
by danieltillett 9y ago
No, because the value of controlling a fiat currency is that you can issue more. It is not any one crypto currency that is a threat, but the idea. To kill the idea you can't just ban something, you have to burn everyone so they hate it.
Since when has something being outside of US regulators sphere of authority stopped the US government from acting?
- snowwrestler 9y agoI know this is sacrilege to cryptocurrency believers, but the primary value of controlling a fiat currency is the ability to stabilize your economy. It permits you to decouple the unit by which you measure economic value, from fluctuations in the total economic value in your economy. If you think of a currency unit as the unit of measurement for economic value, then when the economy shrinks you will need less of them, and when it grows you will need more of them. Fiat currency is desirable for the same reason a tape measure is more useful than a yardstick. This is directly observable in the economic history of the United States. If you chart constant-dollar annual GDP growth from 1930 to today, there is an obvious decrease in volatility.
- danieltillett 9y agoYes this is right, but it is more than that. For example, you can use control of the currency to control the split between labor and capital, or save institutions such as the large banks in a GFC situation (look at the difference in how the owners of the banks faired in 2008 verses 1933).