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The question I have is whether "cryptocurrencies" are fundamentally flawed because they are not linked into the fiat money system or whether it just a few examp
by lbriner 5y ago
The question I have is whether "cryptocurrencies" are fundamentally flawed because they are not linked into the fiat money system or whether it just a few examples that fail either due to their politics, proof-of-work or some other variable?
As far as I understand it, the only reason that real money has real value is because it is backed by banks and we trust the banks. We trust the banks because they make money by providing us the stability so it is a win-win.
- lbriner 5y agoNot sure why I was downvoted, this was a genuine question. I understand the idea of having decentralised currency to specifically avoid being "controlled" by central banks but the example of BitCoin has not worked and I wonder if this is purely a technical issue specifically with Bitcoin (slow ledger, associated with crime, instability) or whether it is even possible to get the stability and value from any system that is not anchored to anything tangible. Is the jury still out or do we know it can work?