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Fiat's main advantage is monetary policy, arguably the most powerful economic tool a country has. I highly doubt countries like China and the US will willingly
by Salgat 5y ago
Fiat's main advantage is monetary policy, arguably the most powerful economic tool a country has. I highly doubt countries like China and the US will willingly give that up. The reason Bitcoin has survived so long is because outside the black market it is only used for speculation (at least, in any practical amounts). If a highly deflationary coin like Bitcoin became a currency, we'd be screwed and very vulnerable to what happened during the great depression with gold-backed money.
- doggosphere 5y agoNation states will never give up the ability to print money, and fiat will always exist. But a deflationary asset has utility, and ironically central banks will want to hold it as a reserve asset. They'll just be the last ones to do so.