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Interesting that you wrote that just like that. Now apparently we have just created 1$ out of thin air. I like that example as it already shows one of the fun
by Sentino 4y ago
Interesting that you wrote that just like that.
Now apparently we have just created 1$ out of thin air.
I like that example as it already shows one of the fundamental risks of crypto.
And now you can't even just say BTC or eth or stable coin because this is true for all.
- kayamon 4y agoYou can't just mint a new BTC on demand -- the hashing takes a fixed amount of time/energy that you have to wait for.
- pjc50 4y agoBut that doesn't matter, you can borrow one on a defi platform and re-lend it. The exact same "money creation" process that people complain about with "banks" also works for any deposit-taking lending organisation.
- simmerup 4y agoBut you can mint Tether or USDC on demand and use that to buy BTC. As long as no one tries to cash it into real money the BTC price goes up and so does the market cap
- foxpiss 4y agothe fundamental risks of crypto seems to just be a repeat of the fundamental risks of unregulated banking... first as tragedy then as farce eh?
- bnralt 4y agoThat's an interesting point I hadn't thought about before but it should have been obvious. Crypto is inherently inflationary to the system as a whole, since you're increasing the amount of currency without increasing the number of goods.