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> The banks would have gone down like dominoes and taken the entire system with it. This isn't 'fear mongering' it's basically just math, you can see how the sy
by BLKNSLVR 5y ago
> The banks would have gone down like dominoes and taken the entire system with it. This isn't 'fear mongering' it's basically just math, you can see how the system is connected and what will happen.
And the fact that the Fed could just QE a bailout is why there's no will to properly regulate or enforce.
It's a double edged sword.
I would have liked to see what would happen in a pandemic if Bitcoin were the world's reserve currency; if no QE were possible to help the suddenly unemployed etc. If / when Bitcoin fails in such a situation, we could see an increase in trust for fiat currencies and government monetary policy. It's a purely hypothetical situation though.
- jollybean 5y ago"I would have liked to see what would happen in a pandemic if Bitcoin were the world's reserve currency;" We already know the answer to it: the economy would collapse in a hulking mass. The 'advantage' of Bitcoin, which is 'integrity' (i.e. can't be debauched) becomes a big 'disadvantage' during a time of crisis, when reallocation has to happen. It's like nailing your boat with a plank to the dock: string and reliable. But then the tide goes out and everything breaks: better in the long run to use ropes. BTC is inflationary, people would rush to it during a crises and credit would evaporate, the dominos would all fall down. Something 'unforeseen' will always happen, meaning we have to be able to change the rules sometimes. Much like a pandemic situation, a lot of the normal rules for operating the economy go out the window. Vaccine production and distribution is fully socialised, not part of normal healthcare etc.. And yes, it's a giant double edged sword which is why there's no excuse for not having 'intelligent, comptetent and responsible leadership' at all times.