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This is exactly the point: the fed can conjure unlimited credit out of thin air. Cryptocurrencies can't. The limitation becomes a feature: debt can't be inflat
by 1996 8y ago
This is exactly the point: the fed can conjure unlimited credit out of thin air. Cryptocurrencies can't.
The limitation becomes a feature: debt can't be inflated way.
We are one major crisis away from people preferring an asset that can't be inflated, or forcefully converted by executive order, under threat of confiscation.
When that happens, you will be right: by Gresham law, people will prefer paying for stuff (including taxes) in fiat currency.
- nradov 8y agoOf course cryptocurrency debt can be inflated away. Fork the blockchain, or switch to another one entirely. Who's going to force me to pay? It's just bits.
- 1996 8y agoyou assume people care about the fork. if people dont and only want the original, or if the smartcontract is not updated to allow the fork at a lesser rate, you're stuck But nobody ever forces you to pay- the goods and services just stop coming your way, or you lose your collateral. Inflating the debt is not a problem because of the small consumers, but the government. Seignorage tax affects the small consumers.