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You will never be able to price anything in Bitcoin, ever. It's volatile because deflationary currencies are inherently volatile. The future of finance is in
by koheripbal 6y ago
You will never be able to price anything in Bitcoin, ever. It's volatile because deflationary currencies are inherently volatile.
The future of finance is in some future crypto that provides for economic-growth-based inflation/deflation of the money supply. The Fed does this manually, and that's what keeps USD more-or-less stable.
- charcircuit 6y agoThere are already multiple stable coins that exist that are pegged to the dollar.
- koheripbal 6y agoPegging to the dollar is not really its own currency then. ...and yes, Tether is far more used than Bitcoin for non-speculative trading.
- nickik 6y ago> It's volatile because deflationary currencies are inherently volatile. That is wrong. Maybe you mean 'fixed supply currency'. There is nothing inherent in deflation, defined as 'general decline in general price level' that makes it volatile in terms of purchasing power. The old pre-WW1 gold standard was deflationary, but it was also as stable as any system humans have ever come up with. It worked by banks adjusting reserves depending demand for their base currency.
- tibbon 6y agoFWIW, there's plenty of volatile fiat currencies that things are priced in today. Stability has never been required for pricing.
- sethd 6y agoYou can definitely price things in a volatile currency but that doesn't mean the situation will be ideal. One just has to look at the research on the economic impact of currency volatility on emerging markets to see how this plays out.
- nelsonmandela 6y agoI've got 50,000 chainlink that refuses to pump. Might be the first unintentional stablecoin.
- koheripbal 6y agoWhat's so special about chainlink?