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I feel like that metaphor is kind of broken. One could argue that anarchy isn't the answer to a poorly run government because the benefits of governamental regu
by slapresta 14y ago
I feel like that metaphor is kind of broken. One could argue that anarchy isn't the answer to a poorly run government because the benefits of governamental regulation and control outweigh those of anarchy (a position I disagree with, but that's just my opinion). What kind of benefits do central banks provide?
- slg 14y agoThe most important function in this context is controlling the money supply and providing stability. If inflation or deflation of the US dollar gets too extreme, the Federal Reserve will adjust the money supply in order to prevent the problem from snowballing. There is no such entity that can serve that purpose for Bitcoin. This increases the odds for both runaway inflation or deflation (deflation is seemingly more like for Bitcoin). If either of those happen, the currency has the potential to collapse.