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Appreciate the examples here. And how do you see this applying to cryptocurrencies with fixed supply? Can a fixed supply cryptocurrency incur external debt some
by reginold 5y ago
Appreciate the examples here. And how do you see this applying to cryptocurrencies with fixed supply? Can a fixed supply cryptocurrency incur external debt somehow?
- danaris 5y agoThe problem with cryptocurrencies is not hyperinflation in the same sense. It is that they are being treated as speculative assets, not currencies, and are thus subject to the same wild swings in value. This makes them terrible for use as an actual currency, which must be reasonably stable in order for people to use it in safety and comfort.
- reginold 5y agoSpeculative assets, wild swings in value, terrible as a currency -- I hear you on all of these. My point is simply that the author of the article used "hyperinflation" as one of the weaknesses of Bitcoin. Though Bitcoin has many weaknesses and ills, hyperinflation is not one of them.
- danaris 5y agoBut...he didn't. He said its value sometimes "goes down as fast as during a bout of hyperinflation". He was pointing out that when you try to use it as a currency, it shares some of the worst possible features of currencies, without their balancing benefits.
- reginold 5y agoI hear you. Appreciate hearing your perspective. Sounds like I'm getting too in the weeds about word choice and misunderstanding.