3 ms·
While I agree with you in general, I don't think it is 100% true. Currencies of smaller states have been target of speculative attacks (https://en.m.wikipedia.
by yokaze 6y ago
While I agree with you in general, I don't think it is 100% true.
Currencies of smaller states have been target of speculative attacks (https://en.m.wikipedia.org/wiki/Speculative_attack https://en.m.wikipedia.org/wiki/Speculative_attack).
But actually being a fiat currency gives the central bank the means to counteract that, which bitcoin doesn't have.
E.g printing money to buy foreign currency bonds to lower the exchange rate.
I fail to see that a disadvantage.
- hyko 6y agoYes, it’s true that some central banks have chosen a different side of the triangle, but the likes of USD and GBP are firmly on the same side of the triangle as Bitcoin (free flowing capital and independent monetary policy). It’s specious for the OP to claim that they are attempting to fix their exchange rates, because they are clearly not. Trying to explain Bitcoin’s enormous deflationary pressure and volatility using analysis like this is just impossible.