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Fed Designs Digital Dollar That Handles 1.7M Transactions per Second

2 points by lalaland1125 5y ago

sparkie 5y ago
That's great and all, but can the Fed please design a dollar that doesn't have 1.7M more units created per second. I will stick with Bitcoin, thanks.
- jqpabc123 5y ago
  1.7M tethers are created per second --- and then used to inflate the price of the bitcoin that you buy --- before it crashes.
  - sparkie 5y ago
    Print as many tethers as you want, it won't increase the supply of bitcoin. I don't care how many dollars, or tethered dollars I can buy with my bitcoin. The dollar is on its way out. A collapse of tether would be a boon for bitcoin. It would amplify the need for an inflation-proof money.
    - jqpabc123 5y ago
      It would amplify the need for an inflation-proof money. So a 40 percent drop in bitcoin over the last 3 months wasn't enough "amplification" for you? All indications are that bitcoin (and crypto in general) is some of the least stable and least inflation proof money available. And if it wasn't for the stabilizing effects of Tether fraud, the situation would be even worse. Tether exists as proof that it's really hard to manufacture stability out of nothing but electrons.
      - sparkie 5y ago
        3 months is a very short time. When you look over 10 years, it's not far off being a straight line[1] (on a log-scale Y-axis!) Bitcoin is for saving. You know, for things like retirement. I have 30 years to worry about that, do you think I care much what people are willing to exchange btc/usd at next month? Not sure where people get the idea that "hedge against inflation" is referring to short term fluctuations in price differences. The problem with inflation is that once prices have risen 7.5%, they permanently have a 7.5% higher nominal price (even if inflation comes down afterwards). Your earnings might eventually increase by 7.5% to make up for that, but anything you had saved beforehand has declined in value by 7.5%. The long term effect of these short bursts of inflation is a 99% loss of purchasing power in the same number of years. [1]:https://usdsat.com/ https://usdsat.com/

2 points by lalaland1125 5y ago

That's great and all, but can the Fed please design a dollar that doesn't have 1.7M more units created per second. I will stick with Bitcoin, thanks.

jqpabc123 5y ago
1.7M tethers are created per second --- and then used to inflate the price of the bitcoin that you buy --- before it crashes.
- sparkie 5y ago
  Print as many tethers as you want, it won't increase the supply of bitcoin. I don't care how many dollars, or tethered dollars I can buy with my bitcoin. The dollar is on its way out. A collapse of tether would be a boon for bitcoin. It would amplify the need for an inflation-proof money.
  - jqpabc123 5y ago
    It would amplify the need for an inflation-proof money. So a 40 percent drop in bitcoin over the last 3 months wasn't enough "amplification" for you? All indications are that bitcoin (and crypto in general) is some of the least stable and least inflation proof money available. And if it wasn't for the stabilizing effects of Tether fraud, the situation would be even worse. Tether exists as proof that it's really hard to manufacture stability out of nothing but electrons.
    - sparkie 5y ago
      3 months is a very short time. When you look over 10 years, it's not far off being a straight line[1] (on a log-scale Y-axis!) Bitcoin is for saving. You know, for things like retirement. I have 30 years to worry about that, do you think I care much what people are willing to exchange btc/usd at next month? Not sure where people get the idea that "hedge against inflation" is referring to short term fluctuations in price differences. The problem with inflation is that once prices have risen 7.5%, they permanently have a 7.5% higher nominal price (even if inflation comes down afterwards). Your earnings might eventually increase by 7.5% to make up for that, but anything you had saved beforehand has declined in value by 7.5%. The long term effect of these short bursts of inflation is a 99% loss of purchasing power in the same number of years. [1]:https://usdsat.com/ https://usdsat.com/