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If Monero gets completely cut off from any means of fiat conversion, then what? How do you do price discovery?
by jl2718 5y ago
If Monero gets completely cut off from any means of fiat conversion, then what? How do you do price discovery?
- matheusmoreira 5y agoHow do people do price discovery in USD? Why do things cost what they do? Because people price things in it. At some point people will need to start accepting it for goods and services in order to make it real. Ideally there'd be no need to use fiat at all. Most fundamentally, the USD is backed by the price of oil. The price of everything else is somehow derived from this. The USA's military will probably destroy any country that attempts to sell oil for any other currency. Can you imagine what would happen if someone sells barrels for XMR? The USD would be obsolete in no time.
- jl2718 5y agoPart of the dominance of fiat is the effect of lending and investment markets on business cash flows. Reported earnings are a tax liability for an individual, but they are an asset to a business, which increases the value of their equity and increase their debt ceiling. In an inflationary monetary system, the most important thing is asset leverage, so privacy is a bad thing. It's a funny thing actually. The SEC deals mainly with corporate over-reporting and IRS with individual under-reporting. There is a "Gresham's Law" kind of question here, whether 'better' is actually better.