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There are two ways to look at currency (fiat or otherwise): - Medium of exchange - Store of value Fiat currency has utility for both. If crypto was more wide
by mbesto 6y ago
There are two ways to look at currency (fiat or otherwise):
- Medium of exchange
- Store of value
Fiat currency has utility for both. If crypto was more widely accepted by merchants (thereby satisfying bullet point #1) then this certainly changes the game. But it's not.
Comparing both in their current capacities is disingenuous.
- doggosphere 6y agoFiat currency as a store of value is plainly bad, not sure how you determined there is much utility in using it for saving. A US Government 10 yr bond currently yields 0.91%, and has been falling consecutively since its peak in 1981. It is at the whims of whoever decides the interest rate.
- mbesto 6y ago> It is at the whims of whoever decides the interest rate. Which is precisely what makes it a fiat currency - its value is determined by a government entity. > A US Government 10 yr bond currently yields 0.91%, and has been falling consecutively since its peak in 1981. You know there are other fiat currencies right? > not sure how you determined there is much utility in using it for saving. "store of value" doesn't mean simply saving, it means the asset doesn't depreciate. The alternative to a fiat currency is to hold your goods as is and barter them, which relative to a fiat currency is a bad idea. Your cow eventually dies, your milk eventually soils, your tree eventually dies, etc. etc. In other words those assets all eventually depreciate to zero.