- Joined: Nov 6, 2013
- Last Login: Sep 27, 2021, 1:00pm EDT
- Comments: 118
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As evidenced by this mornings move, crypto is super exposed to regulatory action. And the vice is tightening. There is zero chance regulators globally let the current fractional reserve banking system be sacrificed on the altar of crypto. Zero.
Also gold hasn’t been used as currency for a very long time for lots of obvious reasons. There is an argument to be made that the world needs a digital gold and Bitcoin could fulfil this role. But there is zero chance of it replacing fiat. Another digital currency could replace fiat but it’s almost certain to be one backed by a central bank.
Comment 1 reply, 3 recs
Nothing to do with sucking. It just doesn’t and can’t fulfil the role that fiat does. It might be ok as digital gold. But not as money. Read my post again.
Comment 2 replies, 4 recs
Gold isn’t used as money (virtually anywhere) for very good reasons. Even if Bitcoin is digital gold (big IF – time will tell) it sucks as money. It will never replace fiat for so many reasons but mostly because you can’t create new Bitcoin (that’s the whole usp of it being digital gold) and the creation of money (fiat) is critical for the issuance of credit. The increase in money supply when new credit is issued is completely fundamental to gdp growth and our entire economic system. That’s one reason among so many as to why Bitcoin never replaces fiat.