4 ms·
I wrote a whole post because I misread your first line as "while some people think" and set out to "tell people on the internet they are wrong", but since we se
by igorkraw 4y ago
I wrote a whole post because I misread your first line as "while some people think" and set out to "tell people on the internet they are wrong", but since we seem to actually agree with another, I'll post the below as an agreeing addendum to make the point just how much more stable real economics and finance are than crypto BS. And also because I wrote it already.
---
This is not "luckily", it's by design, and there's a couple of other key differences as well.
1.Modern central banking implements an artificial separation between government and CB (an imperfect one), that attempts to make this less recursive...
2. ...but the key difference here is that the value of the dollar ultimately derives from the fact you need to pay US taxes with it. If you want to do business in the US, you need to get some USD to pay taxes in which are then used to keep the US a place to do business in. It is exactly the same model as FTT except that instead of paying "taxes" to trade on one of many market places, the US is a giant nonfungible place, with lots of difficult to move assets and people, serving a fucknormous circular economy with a staggering amount of real world consumption - i.e., a place you want to or have to do business in even if there's shock...
3. ...and has a monopoly on the violence (in the form of laws, courts, police and military) that actually enables the notions private property that enables this all. If the US government collapses your dollars are worthless whether they are backed by a bond or not.
4. Finally, neither the CB nor the government are up for sale or needs to generate profits or shareholder value. All they need to care about is continuing the system in a way that its constituents want (I'm not specifying the aggregation method, oligarchs are still constituents)
So overall, and with the fact that this is a system which has been iterated on for hundreds of years(thousands if you count legal code), yeah, it's a lot more stable
- greiskul 4y agoExactly. People that say that the value of fiat money is fake, never think about taxes. You want to own a house? The government mandates that you acquire and give them a certain amount of US dollars. Even if you did every single transaction in your life with other assets, paying for stuff with gold and chickens, at the end of the day, the tax man will come for you, and the tax man only takes dollars.
- codetrotter 4y agoI want to pay my taxes in BTC or ETH. I remain hopeful that one day I will be able to. Until then, fiat taxes it is.
- pooper 4y agoI lost faith in cryptocurrency pretty early on because of the idea that it costs money to send or receive money. My ideal of a currency is it should be free of cost or almost free of cost to send or receive money. There was another post here about a thought experiment where someone asked if I had eight billion dollars, how can I send a dollar to every person on earth? Well, right now you can't because it costs too much to send or receive money. I don't have a solution but the fact that eth is full of "gas" people who want USD, makes me think it is no different from the Bitcoin crowd regardless of the pos switch. Or to quote the wolf of wall street, the people who own Bitcoin and Ethereum networks still take home cold hard cash. Don't fall for their BS. Bitcoin or eth doesn't pay for your mining rigs or your electricity.
- landemva 4y ago> You want to own a house? The government mandates that you acquire and give them a certain amount of US dollars. I have gone through many county clerk & recorder documents. I regularly see 6 and 7 figure houses change hands via recorded quit claim that says things like: 'love and other valuable consideration' or the frequent 'ten dollars'. And I have read a lot of State law. While there is shady stuff in law such as "federal IRS lien can be recorded without a hearing nor judgment in State court", I have yet to see law which requires $ to exchange a house. Am interested in seeing a State law reference you may know of.