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The problem w Bitcoin as a global reserve currency is that it cannot be manipulated by the nation-state. Manipulation in this case is not a bad thing it is actu
by dpweb 6y ago
The problem w Bitcoin as a global reserve currency is that it cannot be manipulated by the nation-state. Manipulation in this case is not a bad thing it is actually a safety feature for society against pure supply/demand dynamics. The prevailing wisdom is that having a fiat currency which value and velocity can be manipulated by, granted the Fed Reserve is a quasi govt agency, in times of emergency helps preserve the social order and smooth fluctuations. So Bitcoin has no value as a reserve currency unless it could be manipulated by the state, which it can’t, so it won’t.
- 3np 6y agoThe state can still manipulate their national currency (which Bitcoin likely won’t replace). Positive things with Bitcoin are that: 1. When the US dollar eventually loses its status as the global currency for settlement and reserves, no individual country needs to have the same perverse control that they US had as a consequence today. 2. Citizens have an exit ramp from the local currency. This means the state doesn’t have the same totalitarian control of the national economy, limiting the impact on citizens of demonetization and hyperinflation.