Re:Publication of Cryptocurrency Enforcement Framework
by ric2b on Friday October 09, 2020 @06:25AM
(#24728512)
> Either way, stability and predictability of the value of a currency are much more important for the long term
I think Bitcoin has the long-term edge here, as the issuance rate is 99.9% predictable and known (unless the community decides to change it, which seems unlikely) and the price volatility would decrease massively if adoption increased.
Re:Publication of Cryptocurrency Enforcement Framework
by slg on Friday October 09, 2020 @12:19PM
(#24731412)
Bitcoin has a chicken and egg problem. You claim it will have that stability once its adoption has increased but its lack of price stability is a major hindrance to people adopting it as a store of value. Right now, pick any window of time from 24 hours to a century. I am much more confident that any of us could predict the value of USD, EUR, or GBP than Bitcoin. That is a big problem and it more important than any "but the inflation" arguments.
It doesn't free you from inflation, it simply abdicates control over inflation. Sometimes that works out well for who already have money and the value of the currency rises. Sometimes it works to the disadvantage of the people with money and the value of the currency decreases. Either way, stability and predictability of the value of a currency are much more important for the long term healthy of an economy and those are areas in which the worlds biggest fiat currencies generally come out ahead of cryptocurrencies.