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The problem with it being an effective way to exchange money but not a meaningful store of value is that the former depends upon the latter. I'm curious as to w
by heydenberk 13y ago
The problem with it being an effective way to exchange money but not a meaningful store of value is that the former depends upon the latter. I'm curious as to whether there are any altcoins that solve this problem by, say, pinning the value to USD (or a basket of currencies) and allowing for a continually increasing monetary supply.
- heydenberk 13y agoIf there were a series of altcoins pinned to existing fiat currencies, it might have the strange consequence of allowing decentralized, unregulated forex. The altcoins might exert an influence on the values of their respective currencies. It'd be interesting to say the least.
- cynusx 13y agoit's funny you mention because I believe I have cracked the problem of pinning an altcoin to the usd but I fail to see how it would get adoption in the first place. There is no deflationary or early-adopter reward in it, the only value would be that the coins in the system would be transferrable with no transaction fee and that they won't lose value relative to the USD so it is safe to keep them in their digital form.
- heydenberk 13y agoI reckon these are the same problems Paypal faced early on. Why take good old USD out of your bank account and put them into an account you can only use for certain payment processing? They figured it out, but maybe it's too late now? I'd like to think it isn't