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> why does every little country need its own currency? Are they all just addicted to printing money? Controlling your money supply can be needed to improve you

by mpyne 4y ago

> why does every little country need its own currency? Are they all just addicted to printing money? Controlling your money supply can be needed to improve your country's position with regard to foreign trade. Greece would probably have been better able to manage its recent debt crisis had it controlled its own currency rather than being tied to the Euro, for example. > Ignoring the volatility and environmental concerns, why shouldn’t all these small to medium-sized countries standardize on a cryptocurrency? Because people still need to be able to transact with something, which is not a function well-served by cryptocurrencies, most of which have the bulk of trade in them carried on off-chain or via stablecoins that track a fiat currency.

rlt 4y ago
> Because people still need to be able to transact with something, which is not a function well-served by cryptocurrencies, most of which have the bulk of trade in them carried on off-chain or via stablecoins that track a fiat currency. That’s a bit like saying the dollar isn’t a suitable currency because most transactions don’t happen directly through the Federal Reserve. Most people would transact through “layer 2” systems like Lightning, or even paper currency issued by one or more countries but backed by cryptocurrency reserves. The cryptocurrency bit is to allow mutually distrusting countries to standardize on a single currency, if that’s something that might be valuable.
olalonde 4y ago
> Controlling your money supply can be needed to improve your country's position with regard to foreign trade. This is basically protectionism, an economic theory that has been debunked time after time. If it were true, then why doesn't it hold true for individual states within a country? And while we are at it, why not a currency for every city or neighborhood? > Because people still need to be able to transact with something, which is not a function well-served by cryptocurrencies, most of which have the bulk of trade in them carried on off-chain or via stablecoins that track a fiat currency. Those same systems could simply add support for cryptocurrency. Paypal did a few months ago (not sure if they enabled merchant support or p2p transfers, but there's no technical barrier preventing them to do so). Credit cards could also add crypto to the long list of currencies they already support. Etc.

by mpyne 4y ago

rlt 4y ago

> Because people still need to be able to transact with something, which is not a function well-served by cryptocurrencies, most of which have the bulk of trade in them carried on off-chain or via stablecoins that track a fiat currency. That’s a bit like saying the dollar isn’t a suitable currency because most transactions don’t happen directly through the Federal Reserve. Most people would transact through “layer 2” systems like Lightning, or even paper currency issued by one or more countries but backed by cryptocurrency reserves. The cryptocurrency bit is to allow mutually distrusting countries to standardize on a single currency, if that’s something that might be valuable.

olalonde 4y ago

> Controlling your money supply can be needed to improve your country's position with regard to foreign trade. This is basically protectionism, an economic theory that has been debunked time after time. If it were true, then why doesn't it hold true for individual states within a country? And while we are at it, why not a currency for every city or neighborhood? > Because people still need to be able to transact with something, which is not a function well-served by cryptocurrencies, most of which have the bulk of trade in them carried on off-chain or via stablecoins that track a fiat currency. Those same systems could simply add support for cryptocurrency. Paypal did a few months ago (not sure if they enabled merchant support or p2p transfers, but there's no technical barrier preventing them to do so). Credit cards could also add crypto to the long list of currencies they already support. Etc.