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the gold standard was abolished to due it's volitile nature, compared to stability of a fiat like the USD. Bitcoin being a volitile commodity itself, it will no
by pxue 4y ago
the gold standard was abolished to due it's volitile nature, compared to stability of a fiat like the USD. Bitcoin being a volitile commodity itself, it will not be able to run the global economy on-top of it.
- unboxingelf 4y agoI honestly can’t tell if this is satire. Fiat is stable in so far as the number doesn’t change, but good luck with that purchasing power. Bitcoin is a scarce commodity with no issuer. It cannot be counterfeited on the whim of a small group. Its volatility should decrease with adoption.
- reducesuffering 4y agoDown 66% in 1 year after the whole world knows about it. Any day now. Wasn't it supposed to be an inflation hedge? Fiat sure retained value much better this year...
- cflynnus 4y agozoom out
- pxue 4y agoYou're precisely talking about the impossible trilemma.
- cflynnus 4y agoGold standard was nixed because the government wanted to be able to create new money out of thin air and give it to itself. Simple as that.
- Karrot_Kream 4y agoThis is incorrect. The gold standard was abolished in the US because it was too hard for the US to control macroeconomic policy [1] (especially import/export rates) through gold. The US already had elaborate ways to manage reserves to help in keeping the dollar steady. It was also a matter of dwindling gold reserves for the US. Whatever your thoughts are about the gold standard, it was not instability that did it in. [1]: https://www.wsj.com/articles/when-the-u-s-gave-up-gold-11625148788 https://www.wsj.com/articles/when-the-u-s-gave-up-gold-11625...
- __MatrixMan__ 4y agoIt was a lack of Turing completeness.