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No legal use case? Really? Honest question are you legitimately excited for FedNow? What problem will it solve? What does FedNow have to do with cryptos downf

No legal use case? Really? Honest question are you legitimately excited for FedNow? What problem will it solve? What does FedNow have to do with cryptos downfall? Does FedNow fix our 120% debt to gdp ratio? Estimates of inflation required to get our debt to gdp back to 50% is 4-5 years of 12-20% inflation. You don't want inflation? Well then I guess the US is going to default on our loans. 98% of countries in the last 120 years that had a debt to gdp of 130% has either defaulted or had massive inflation (only exception is Japan which is still in progress, currently holding off because its positive NIIP, US has negative NIIP). For the US it's either default, print, or hope for a miracle.

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ceejayoz 3y ago
> 98% of countries in the last 120 years that had a debt to gdp of 130% has either defaulted or had massive inflation Sounds impressive, but this stat relies heavily on a) developed world nations and b) nations back when we had the inflexible gold standard. The US also benefits dramatically from being able to issue debt in USD, which it controls.
- wustangdan 3y ago
  Yes exactly, on gold standard they would default, now they inflate. The US can issue debt in USD and even print 1 trillion USD coins. But what happens to the value of the currency when they repeatedly do that? Crypto (and other assets obviously) can act as a hedge against such bad government behavior.
  - ceejayoz 3y ago
    > The US can issue debt in USD and even print 1 trillion USD coins. But what happens to the value of the currency when they repeatedly do that? Thus far, not all that much of consequence. > Crypto (and other assets obviously) can act as a hedge against such bad government behavior. Objection, Your Honor. Assumes facts not in evidence.
    - wustangdan 3y ago
      https://www.bls.gov/data/inflation_calculator.htm https://www.bls.gov/data/inflation_calculator.htm From Jan 2019 to now we've had 17.4% inflation. Your purchasing power of the money in your bank account has been reduced. How have other assets faired in that time? > Objection, Your Honor. Assumes facts not in evidence. Okay longer timeline, if you held dollars in your savings account from Jan 2009 to now (during ZIRP) you've lost 30.5% of your purchasing power. How has the SP500 or houses fared in that time (even ignoring crypto)? If losing 30% of your purchasing power is no consequence to you, please let me have a not much of consequence portion of your salary, thanks.
      - JumpCrisscross 3y ago
        > if you held dollars in your savings account from Jan 2009 to now (during ZIRP) you've lost 30.5% of your purchasing power One, obviously a policy failure. Two, don’t do this. Bank deposit dollars are optimised for transacting, not long-term value transport. For that, use Treasuries (including inflation-protected ones). It’s not the Falcon 9’s fault that it makes for a bad hammer.
        wustangdan 3y ago
        Well I mean the recent bank failures showed the issue with treasuries, but sure it seems we agree more than disagree. You agree that holding USD is failure for long term value or even short term (3 year) value transport. My argument is that assets and crypto is needed to hedge the potential incoming USD destruction. And that because crypto has some nice properties that houses and the SP500 don't, it has a legitimate reason to be a part (even if small) of your hedge. I don't buy the "Crypto is a complete scam" argument at all.
        JumpCrisscross 3y ago
        > I mean the recent bank failures showed the issue with treasuries No depositors lost money. And like, yeah, Treasuries go up and down in price; it's dumb our regulations pretended otherwise. Particularly given the problem was fixed by Basel III. > assets and crypto is needed to hedge the potential incoming USD destruction This is gold buggery. Which means gold does a fine enough job. > don't buy the "Crypto is a complete scam" argument at all I don't, at least not with certainty. But there is certainty around the prevalence of fraud. That needs to be regulated, which means crypto needs to be taxed to pay for that regulation. Gold bugs are a famously-profitable client group for finance; crypto is the same. Let's put them on the same level.
  - this_user 3y ago
    And how has that alleged inflation hedge performed last year when inflation was at its highest? It went down about 80% YoY. Crypto is not a hedge against inflation. It's not a currency, and it barely works as a shitty payment system. It truly is one of the worst technologies ever invented, and nothing would be lost if it just ceased to exist.
splinter_cell 3y ago
Anyone who thinks FedNow is a replacement for crypto has no understanding of either the Fed or crypto They are just regurgitating tweets from someone else

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ceejayoz 3y ago

> 98% of countries in the last 120 years that had a debt to gdp of 130% has either defaulted or had massive inflation Sounds impressive, but this stat relies heavily on a) developed world nations and b) nations back when we had the inflexible gold standard. The US also benefits dramatically from being able to issue debt in USD, which it controls.

wustangdan 3y ago
Yes exactly, on gold standard they would default, now they inflate. The US can issue debt in USD and even print 1 trillion USD coins. But what happens to the value of the currency when they repeatedly do that? Crypto (and other assets obviously) can act as a hedge against such bad government behavior.
- ceejayoz 3y ago
  > The US can issue debt in USD and even print 1 trillion USD coins. But what happens to the value of the currency when they repeatedly do that? Thus far, not all that much of consequence. > Crypto (and other assets obviously) can act as a hedge against such bad government behavior. Objection, Your Honor. Assumes facts not in evidence.
  - wustangdan 3y ago
    https://www.bls.gov/data/inflation_calculator.htm https://www.bls.gov/data/inflation_calculator.htm From Jan 2019 to now we've had 17.4% inflation. Your purchasing power of the money in your bank account has been reduced. How have other assets faired in that time? > Objection, Your Honor. Assumes facts not in evidence. Okay longer timeline, if you held dollars in your savings account from Jan 2009 to now (during ZIRP) you've lost 30.5% of your purchasing power. How has the SP500 or houses fared in that time (even ignoring crypto)? If losing 30% of your purchasing power is no consequence to you, please let me have a not much of consequence portion of your salary, thanks.
    - JumpCrisscross 3y ago
      > if you held dollars in your savings account from Jan 2009 to now (during ZIRP) you've lost 30.5% of your purchasing power One, obviously a policy failure. Two, don’t do this. Bank deposit dollars are optimised for transacting, not long-term value transport. For that, use Treasuries (including inflation-protected ones). It’s not the Falcon 9’s fault that it makes for a bad hammer.
      - wustangdan 3y ago
        Well I mean the recent bank failures showed the issue with treasuries, but sure it seems we agree more than disagree. You agree that holding USD is failure for long term value or even short term (3 year) value transport. My argument is that assets and crypto is needed to hedge the potential incoming USD destruction. And that because crypto has some nice properties that houses and the SP500 don't, it has a legitimate reason to be a part (even if small) of your hedge. I don't buy the "Crypto is a complete scam" argument at all.
        JumpCrisscross 3y ago
        > I mean the recent bank failures showed the issue with treasuries No depositors lost money. And like, yeah, Treasuries go up and down in price; it's dumb our regulations pretended otherwise. Particularly given the problem was fixed by Basel III. > assets and crypto is needed to hedge the potential incoming USD destruction This is gold buggery. Which means gold does a fine enough job. > don't buy the "Crypto is a complete scam" argument at all I don't, at least not with certainty. But there is certainty around the prevalence of fraud. That needs to be regulated, which means crypto needs to be taxed to pay for that regulation. Gold bugs are a famously-profitable client group for finance; crypto is the same. Let's put them on the same level.
- this_user 3y ago
  And how has that alleged inflation hedge performed last year when inflation was at its highest? It went down about 80% YoY. Crypto is not a hedge against inflation. It's not a currency, and it barely works as a shitty payment system. It truly is one of the worst technologies ever invented, and nothing would be lost if it just ceased to exist.

splinter_cell 3y ago

Anyone who thinks FedNow is a replacement for crypto has no understanding of either the Fed or crypto They are just regurgitating tweets from someone else