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"I do see value in a crypto that's pinned at a weighted average of every single currencies' worldwide weight" The values of currencies are only relative (estab
by V-2 6y ago
"I do see value in a crypto that's pinned at a weighted average of every single currencies' worldwide weight"
The values of currencies are only relative (established by exchange rates).
How do you calculate an average for all the existing currencies (weighted or otherwise)?
What am I missing?
- DFHippie 6y agoYou use the price of some common basket of goods. Most participants in an economy are chiefly interested in the price of goods and services, after all, not other currencies. Of course, choosing the basket of goods and adjusting it over time is a little tricky...
- V-2 6y agoI feel like it's a different measure than the proposed one, though.
- MrMan 6y agoIf you hold a basket of currencies this can be traded as an instrument. There is a long standing proposal for example to speed the adoption of a multi-currency basket as kind of a forced substitution of the dollar as global reserve currency, an idea that has a lot of merit.