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>Printing fiat makes stablecoins denominated in the currency lose real value, not gain in it. What's the case for this statement? In general, I don't expect to
by JuliusBranson 5y ago
>Printing fiat makes stablecoins denominated in the currency lose real value, not gain in it.
What's the case for this statement? In general, I don't expect to commodities to change value just because some currency was redistributed.
- spfzero 5y agoThe case for it is the denominator increasing.
- actually_a_dog 5y agoThe commodity in this case is just a proxy for USD or other currency.
- dragonwriter 5y agoPrinting currency makes that currency (and consequently, anything pegged to it) lose value compared to not doing so, because increasing supply decreases market clearing value.
- ivalm 5y agoStablecoin is not a commodity, it is literally a token pegged to the value of a given fiat (such as dollar) or a basket of several fist currencies.