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You get X BTC out, you don't get $X. If prices were stably denominated in BTC it'd be worth the same amount of goods. But then, prices aren't exactly stably d
by nostrademons 4y ago
You get X BTC out, you don't get $X. If prices were stably denominated in BTC it'd be worth the same amount of goods. But then, prices aren't exactly stably denominated in $USD these days, as a lot of savers have found out to their chagrin.
"Price stability" is one of those value-adds to a currency that's pretty important, and it's also one that's been bolted on repeatedly (stablecoins) to cryptocurrency. IMHO a more interesting property would be algorithmically pegging a cryptocurrency to a basket of goods rather than to the USD, though, because the USD has had a pretty shitty peg to that basket of goods over time. There are actually cryptocurrencies that do this, but they rely on centralized oracles that have the same problem as the Fed and the CPI - it'd be interesting if a cryptocurrency could embed price stability into the protocol itself.