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Though BRICS may seem insignificant atm, it is off to an impressive start. Could the world have two competing currencies? Possibly. But the one way to guarant

Though BRICS may seem insignificant atm, it is off to an impressive start. Could the world have two competing currencies? Possibly. But the one way to guarantee that adversaries (I don't care who your adversaries are, I'm using that as a non-denominational term) don't get the upper hand, is to use a currency they can't control or manipulate. ATM the US dollar, can be manipulated by the Fed, but also by the collaboration of other countries, and holders of debt, as recently shown by the US bond activity. I know many on HN are going to hate to hear this, but a single, global, trust-less currency cannot be manipulated against any single group. So bitcoin may just be the answer here.

jdmoreira 1y ago
Bitcoin is so concentrated in the hands of so few that its probably the simplest thing in the world to be manipulated
- pedalpete 1y ago
  I see your point about centralization, but you could argue the same WRT fiat currency where a single entity can create more whenever they wish.
- xrhobo 1y ago
  It is way more than this even. The reserve currency needs to be so liquid that the average person doesn't feel nations buying/selling massive amounts of currency for trade. To believe Bitcoin fits this is to be completely ignorant of reality. It would be questionable if the Euro is even liquid enough for this because of the bond market. If you look at the Real, Ruble, Rupee and Yuan vs USD, the BRICS would like something else because USD is too strong. To look at those currencies and conclude it is over for USD is just absurd.
  - pedalpete 1y ago
    I think you're conflating the idea that a reserve currency needs to be the same currency that a person interacts with on a daily basis. Commercial trade and government debt operate a such large quantities, that they are essentially a market unto themselves. This is essentially how gold worked wrt the gold standard, except that with gold, a large find in one country increases the wealth of that country, or makes it subject to war, as other countries want to capture that value for themselves.
throw0101d 1y ago
> Though BRICS may seem insignificant atm, it is off to an impressive start. A semi-joke-y take on BRICS: > Pretty straightforward really. You combine Brazil's history of monetary stability, with Russia's respect for property rights, India's domestic tranquility, China's financial transparency, and South Africa's investment opportunities - and hey presto, you've got a new global money * https://twitter.com/davidfrum/status/1665053372402081792 https://twitter.com/davidfrum/status/1665053372402081792 Of course more countries may enrol in the system, but that dilutes the influence of the five namesake nations of BRICS. But then you have to choose an actual currency(s), so you will they trust to be stable? Or perhaps go with a 'theoretical' currency likes Keynes' bancor?
EasyMark 1y ago
The issue is the Fed has some logic behind it's methods. We're also find that a clown in the White House can also devalue American currency, status, and inflate the economy with a few strokes of the pen when there is a do-nothing congress who are cowards.
mandmandam 1y ago
BTC hasn't been seen as a viable global currency for about a decade. That's why it was pivoted to be a 'store of value'. It's utterly unsuited to the task. Far too slow, vulnerable to quantum computing, concentrated and tending toward even further concentration, and with utterly useless environmental impacts. At it's core its a cool concept, but cannot be upgraded to match what's currently out there. It's whale oil in a world of fusion power. Fee-less, mining-less, spam resistant, quantum resistant, decentralized and near instant technology exists, right now, and has proven itself over the last ~9 years. It's wild that people think the first-mover advantage extends so far as to accept something so vastly inferior.

jdmoreira 1y ago

Bitcoin is so concentrated in the hands of so few that its probably the simplest thing in the world to be manipulated

pedalpete 1y ago
I see your point about centralization, but you could argue the same WRT fiat currency where a single entity can create more whenever they wish.
xrhobo 1y ago
It is way more than this even. The reserve currency needs to be so liquid that the average person doesn't feel nations buying/selling massive amounts of currency for trade. To believe Bitcoin fits this is to be completely ignorant of reality. It would be questionable if the Euro is even liquid enough for this because of the bond market. If you look at the Real, Ruble, Rupee and Yuan vs USD, the BRICS would like something else because USD is too strong. To look at those currencies and conclude it is over for USD is just absurd.
- pedalpete 1y ago
  I think you're conflating the idea that a reserve currency needs to be the same currency that a person interacts with on a daily basis. Commercial trade and government debt operate a such large quantities, that they are essentially a market unto themselves. This is essentially how gold worked wrt the gold standard, except that with gold, a large find in one country increases the wealth of that country, or makes it subject to war, as other countries want to capture that value for themselves.

throw0101d 1y ago

> Though BRICS may seem insignificant atm, it is off to an impressive start. A semi-joke-y take on BRICS: > Pretty straightforward really. You combine Brazil's history of monetary stability, with Russia's respect for property rights, India's domestic tranquility, China's financial transparency, and South Africa's investment opportunities - and hey presto, you've got a new global money * https://twitter.com/davidfrum/status/1665053372402081792 https://twitter.com/davidfrum/status/1665053372402081792 Of course more countries may enrol in the system, but that dilutes the influence of the five namesake nations of BRICS. But then you have to choose an actual currency(s), so you will they trust to be stable? Or perhaps go with a 'theoretical' currency likes Keynes' bancor?

EasyMark 1y ago

The issue is the Fed has some logic behind it's methods. We're also find that a clown in the White House can also devalue American currency, status, and inflate the economy with a few strokes of the pen when there is a do-nothing congress who are cowards.

mandmandam 1y ago

BTC hasn't been seen as a viable global currency for about a decade. That's why it was pivoted to be a 'store of value'. It's utterly unsuited to the task. Far too slow, vulnerable to quantum computing, concentrated and tending toward even further concentration, and with utterly useless environmental impacts. At it's core its a cool concept, but cannot be upgraded to match what's currently out there. It's whale oil in a world of fusion power. Fee-less, mining-less, spam resistant, quantum resistant, decentralized and near instant technology exists, right now, and has proven itself over the last ~9 years. It's wild that people think the first-mover advantage extends so far as to accept something so vastly inferior.