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Fiat currencies are not ideal but are the best known currency tool to date. I commonly hear that blockchain-based currencies can be a good replacement for fiat
by vatican_banker 6y ago
Fiat currencies are not ideal but are the best known currency tool to date.
I commonly hear that blockchain-based currencies can be a good replacement for fiat currencies. But current examples of blockchain-currencies are either company-sponsored or community-based. This again puts a big weight on a single actor. I'd rather trust the admin of money to a government than a company or a community of anonymous economists/technologists.
Finally, the ability go debase (I assume you mean devaluating) a currency is (arguably) a desirable characteristic. During crises, responsibly devaluating a currency can help a country's economy.
- logicchains 6y ago> Fiat currencies are not ideal but are the best known currency tool to date. By what metric? >Finally, the ability go debase (I assume you mean devaluating) a currency is (arguably) a desirable characteristic. During crises, responsibly devaluating a currency can help a country's economy. I'm skeptical that any benefit this brings outweighs the catastrophic damage it causes when misused. E.g. Weimar Germany, Zimbabwe.
- tupputuppu 6y agoAs described in the article, we are living in a period known as the Great Moderation, a previously unforeseen time of financial stability, low unemployment, and lack of Major depressions. Bringing up autocratic developing countries isn't a great counterexample to the level of welfare we've been privy to in the developed world.
- TheButlerian 6y agoFinally, the ability go debase (I assume you mean devaluating) a currency is (arguably) a desirable characteristic. During crises, responsibly devaluating a currency can help a country's economy. I've always seen this argument. But is there an example from the last 50 years when this actually worked?