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People value goods and services. They use currency to denote the value of these goods and services. If enough goods and service providers pegged their BTC/USD
by stevewilhelm 13y ago
People value goods and services. They use currency to denote the value of these goods and services.
If enough goods and service providers pegged their BTC/USD exchange rate to one, the initial BTC speculators would take a bath.
But subsequent Bitcoin users would receive the benefit of Bitcoin transaction technology and the benefit of the US government's fiat currency for monetary policy.
- GhotiFish 13y agoIn a sense, it's true that the value of a currency is how much you can get for it. The problem is that you can't just peg it at a value, bitcoins supply is limited. Imagine if every goods and service provider pegged their unit product at $1,000,000USD. The VALUE of the US dollar would drop immensely. What force could actually make them do that though? Because no one's going to pay a million bucks for a big mac, unless they have 4 billion in the bank at least. Something that can't happen to bitcoin.