4 ms·
A really fascinating scenario is this: Let's say something like Libra gets adopted worldwide. Let's say there's a huge financial crash at some point in the fut
by Florin_Andrei 7y ago
A really fascinating scenario is this:
Let's say something like Libra gets adopted worldwide. Let's say there's a huge financial crash at some point in the future, with lots of currencies, including some in the Libra basket (the stuff pegging it to the real world), going off the rails.
What would Libra's powers-that-be do then? They can tweak the parameters of their system any way they like. They could throw any currency out of the basket. Or do whatever they like.
- jakemoshenko 7y agoThrowing a failed currency out of a currency basket is like the proverbial tree falling in the proverbial forest. It would not change the value of the Libra at all. The value would already be gone as the value of each stablecoin is computed roughly by taking the entire value of the currency reserves, and dividing it by the number of coins. A good analogy is what happens to the value of a mutual fund when an underlying security becomes valueless.
- Florin_Andrei 7y agoLet's say all meatspace currencies in their basket go off the rails. What would Libra do?
- deleted 7y ago[deleted]
- MrEldritch 7y agoYou are positing a catastrophe of such magnitude that "well, the value of my Libra has gone to shit" is the least of your worries. More appropriate concerns in such a scenario include "How can I acquire enough BDSM gear to wear and skulls with which to adorn my car to survive in the forthcoming Mad Max apocalypse."