Re:The Evolving Economics of Bitcoin, Gold and Fiat Currencies
by moduspol on Wednesday November 01, 2017 @01:33PM
(#15603572)
There are already companies that allow you to pay federal taxes with Bitcoin (by converting them to USD for you). There are already debit / credit cards that allow you to have your account funds in Bitcoin, but convert to USD for a merchant when you use them.
I guess to me it doesn't seem fundamentally impossible that those things could be based in a national / fiat currency that is not the same currency a large number (or even majority) of people use.
Re:The Evolving Economics of Bitcoin, Gold and Fiat Currencies
by dragonwriter on Wednesday November 01, 2017 @01:49PM
(#15603705)
> There are already companies that allow you to pay federal taxes with Bitcoin (by converting them to USD for you)
That's immaterial, in the same way that you can sell non-currency assets to get dollars to pay federal taxes is.
As long as the taxes are denominated and collected exclusively in dollars (and as long as that's the norm for civil damages, as well), the supply of dollars will affect the economy in the usual way, whether or not for most transactions people directly use things that are not US dollars.
When the government stops using it as the basis for taxation, damages in civil cases irrespective of the specific nature of the assets at issue, and criminal fines.
Because as long as those (especially the first two) are true, essentially everyone will use the natiobal currency substantially, both directly and indirectly, regardless of what other assets and currencies they use, and normal monetary policy measures will affect the broader economy in the normal manner unless the auxiliary currencies are actively managed to counteract national monetary policy.