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What currency is stable in value? Certainly not the U.S. dollar.
by aydyn 2y ago
What currency is stable in value? Certainly not the U.S. dollar.
- simpsond 2y agoNone, really. They are all floating relative to each other. But USD is stable enough to know what you can get with $10. Although the last few years have put that to the test.
- mystified5016 2y agoThe USD doesn't frequently lose all or nearly all value as we see from cryptocoins. My $10 today will be worth $10 tomorrow barring nuclear war or an apocalypse.
- FabHK 2y agoAnd anything beyond 3m you put into real estate, stocks, or bonds anyway. Real rates have mostly been positive; and if not, that's the result of an economy wide equilibrium process that can't be undone risklessly by some magic beans.
- aydyn 2y agoSure but the USD has two order of magnitude more total value, and probably more than that in day to day usage. So there's an implicit question there which apparently you and everyone else missed.
- acdha 2y agoWhy do you think the USD has so many orders of magnitude usage? Nobody missed the question, that was the point: for currencies, stability is what makes them useful. You don’t have an incentive to hoard dollars hoping they’ll go up in value, so you spend them and boost the economy. Other countries use dollars because they have the same benefit: I can write a contract with you saying what we’ll pay over the next year and be confident that neither of us is going to be widely inconvenienced by the kind of swings Bitcoin has. Remember that guy who spent 100BTC on a pizza? It’s a funny story but that’s why nobody uses Bitcoin for normal transactions.
- aydyn 2y ago> Why do you think the USD has so many orders of magnitude usage? Nobody missed the question, that was the point: for currencies, stability is what makes them useful. Hint: cause and effect. You did miss the point and still do probably.
- noirbot 2y agoGotta love crypto people putting "looking smarter than you" over actually explaining what it is they mean. If you've got a point to make, don't just hint at it, say something and then we can have a discussion. This just makes you look petty and like you're only in it to stroke your own ego.
- aydyn 2y ago> Gotta love crypto people putting "looking smarter than you" Oh I'm sorry, that was your shtick. Apologies! Also, I'm not a crypto person, I made some gains and sold a long time ago. I just have to laugh that you think one pointing out that an argument is weak makes one a part of the opposite tribe.
- noirbot 2y agoThen maybe you should explain the point you're trying to make instead of just hinting at it? I didn't even specify if I thought you were pro or anti crypto - I just find that most conversations around crypto are dominated by statements of "the other side of this just doesn't understand basic facts like I do" instead of actually stating what the facts are and how they apply to the situation that would help someone learn what's being discussed. I may very well be the stupid one here, and you may be quite a bit smarter than me, but I don't know because I still don't know the point you're hinting at making.
- acdha 2y agoCan you share the point you think people are missing?
- zomglings 2y agoAnd 1 bitcoin in your possession today will be worth 1 bitcoin in your possession tomorrow, barring a successful and very expensive attack on the network. You have little assurance that the buying power of $10 today will be the buying power of $10 tomorrow. If the tariffs had gone through as initially advertised, that would certainly not have been the case.
- acdha 2y agoThis is only true to the extent that your debts are denominated in Bitcoin. Until people want it for purposes other than speculation what matters is the exchange rate because that’s what everyone uses for their expenses.
- bangaladore 2y agoA better way to put it is that a deflationary currency is, counterintuitively, not a particularly good currency. The reality is, Bitcoin and similar, are not being used to actually purchase things. Not at any notable percentage. You're "best bet" is to horde it, and that doesn't make a good currency.
- liontwist 2y agoI come to these threads expecting criticism about bitcoin being funny internet money run by a small group of shady characters. But most of the comments are about how stable currency and stores of wealth are actually bad! It kind of sounds like we think bitcoin is working. If USD is inflating and Gold is staying still, is gold “deflating”?
- chowchowchow 2y agoWhat do you call someone who bought a pizza with BTC last year? Paper hands? Shouldn’t they have hodled and not had pizza? How can this be a currency.
- chii 2y ago> Shouldn’t they have hodled and not had pizza? but then starved to death while hodling?
- chowchowchow 2y agoI don’t know that’s what I’m asking! Should you only spend your money in life or death situations in a btc economy?
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- protimewaster 2y agoI think it's safe to read that as "relatively stable." USD is a relatively stable currency, and especially compared to BTC.
- knowaveragejoe 2y agoIt is for all intents and purposes a stable store of value. There's a reason everyone in crypto thinks only in terms of the dollar value