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This kind of fiat stability is very challenging for small and poor countries. In fact, El Salvador doesn't _have_ its own currency for this reason -- they swit

This kind of fiat stability is very challenging for small and poor countries. In fact, El Salvador doesn't _have_ its own currency for this reason -- they switched to the US dollar decades ago! Is it worse to peg your economy to a decentralized cryptocurrency, or a fiat currency controlled by a large powerful near-neighbor who only occasionally even remembers you exist? (and sure as hell will not modify their fiscal policy with the needs of your economy). Having a backup official decentralized currency doesn't seem ridiculous to me. Maybe I'd use Eth or something that can scale better, but the point is the same.

bb88 5y ago
> Is it worse to peg your economy to a decentralized cryptocurrency, or a fiat currency controlled by a large powerful near-neighbor who only occasionally even remembers you exist? A currency needs stability. Speculation needs volatility. Speculation only works when there's a stable currency to dump your value into when the the security your trading is going in the wrong direction.
- atweiden 5y ago
  > A currency needs stability. The word “currency” is inherently a tautology. How does something become a currency? > Speculation only works when there's a stable currency to dump your value into when the the security is going in the wrong direction. Precious metals long predate government monies. Gold and silver couldn’t have become currency under the definition you’ve presented here.
  - chii 5y ago
    > couldn’t have become currency under the definition you’ve presented here. gold and silver were bad currencies back then, when people had no real alternative. People clipped coins, and debase the currency. People horded them when times were tough, and prevented lending and circulation, causing issues with the economy regarding liquidity. Have a read of https://en.wikipedia.org/wiki/John_Law_(economist)#Economic_theory_and_practice https://en.wikipedia.org/wiki/John_Law_(economist)#Economic_... and educate yourself about the past.
- landemva 5y ago
  "... only works when there's a stable currency to dump your value into ..." Hence the rise of algorithmic stable coins.
  - bb88 5y ago
    You mean like... Tether?
    - cinntaile 5y ago
      There are several alternatives nowadays, you're being dishonest by only mentioning the most controversial one.
      - rualca 5y ago
        For the sake of argument, what's the absolute best alternative to Tether that you feel could safely be used as an example? Because you quickly resorted to ad hominem attacks even though you failed to provide any alternative or even a single counter example.
        cinntaile 5y ago
        I don't know what the absolute best alternative is or how you would define the absolute best, I just know that there are several alternatives. The grandparent knows this as well, hence my post. [0] https://coinmarketcap.com/view/stablecoin/ https://coinmarketcap.com/view/stablecoin/
        rualca 5y ago
        I've asked for your opinion on what you feel is the best counterexample you can put up. It does not seem you're able to point out anything at all. Is that because you are aware that there is actually no good argument to refute OP's point? And thus you resorted to name-calling?
        5y ago

bb88 5y ago

> Is it worse to peg your economy to a decentralized cryptocurrency, or a fiat currency controlled by a large powerful near-neighbor who only occasionally even remembers you exist? A currency needs stability. Speculation needs volatility. Speculation only works when there's a stable currency to dump your value into when the the security your trading is going in the wrong direction.

atweiden 5y ago
> A currency needs stability. The word “currency” is inherently a tautology. How does something become a currency? > Speculation only works when there's a stable currency to dump your value into when the the security is going in the wrong direction. Precious metals long predate government monies. Gold and silver couldn’t have become currency under the definition you’ve presented here.
- chii 5y ago
  > couldn’t have become currency under the definition you’ve presented here. gold and silver were bad currencies back then, when people had no real alternative. People clipped coins, and debase the currency. People horded them when times were tough, and prevented lending and circulation, causing issues with the economy regarding liquidity. Have a read of https://en.wikipedia.org/wiki/John_Law_(economist)#Economic_theory_and_practice https://en.wikipedia.org/wiki/John_Law_(economist)#Economic_... and educate yourself about the past.
landemva 5y ago
"... only works when there's a stable currency to dump your value into ..." Hence the rise of algorithmic stable coins.
- bb88 5y ago
  You mean like... Tether?
  - cinntaile 5y ago
    There are several alternatives nowadays, you're being dishonest by only mentioning the most controversial one.
    - rualca 5y ago
      For the sake of argument, what's the absolute best alternative to Tether that you feel could safely be used as an example? Because you quickly resorted to ad hominem attacks even though you failed to provide any alternative or even a single counter example.
      - cinntaile 5y ago
        I don't know what the absolute best alternative is or how you would define the absolute best, I just know that there are several alternatives. The grandparent knows this as well, hence my post. [0] https://coinmarketcap.com/view/stablecoin/ https://coinmarketcap.com/view/stablecoin/
        rualca 5y ago
        I've asked for your opinion on what you feel is the best counterexample you can put up. It does not seem you're able to point out anything at all. Is that because you are aware that there is actually no good argument to refute OP's point? And thus you resorted to name-calling?
        5y ago