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A comment on S&P Dow Jones Indices to launch cryptocurrency indexes in 2021. Parent comment

Re:S&P Dow Jones Indices to launch cryptocurrency indexes in... by wizeman on Thursday December 03, 2020 @10:45PM (#25298642)
I think you would agree that the intrinsic value of dollars as backed by the metal in USD coins is negligible compared to how many USD exist, because nobody has them in substantial amounts (due to being impractical). The value of the paper that the dollars are printed on is also negligible compared to the value of the bills themselves, let alone all the USD that exist (as you probably know, the vast majority of which don't actually exist as bills or coins).

Besides, everything you said, including tax payment and keeping out of jail, also applies to the Venezuelan bolivar and quite a few other fiat currencies that completely crashed in value due to hyper-inflation.

So I don't think those are good arguments for the USD being valuable or having substantial intrinsic value.

[ Parent | on HN ]
Re:S&P Dow Jones Indices to launch cryptocurrency indexes in... by tylerhou on Thursday December 03, 2020 @11:11PM (#25298814)
> I think you would agree that the intrinsic value of dollars as backed by the metal in USD coins is negligible compared to how many USD exist...

Yes, I agree.

> Besides, everything you said, including tax payment and keeping out of jail, also applies to the Venezuelan bolivar and quite a few other fiat currencies that completely crashed in value due to hyper-inflation.

USD will always be valuable as long as the US government exists and taxes its citizens in USD. This means that there will always be demand for USD (again, as long as the US government exists).

I don't think it's wrong to say that the US government is more stable than the other governments that print currencies that are less stable.

[ Parent | on HN ]
Re:S&P Dow Jones Indices to launch cryptocurrency indexes in... by doggosphere on Friday December 04, 2020 @12:48AM (#25299432)
> USD will always be valuable as long as the US government exists and taxes its citizens in USD. This means that there will always be demand for USD (again, as long as the US government exists).

For the USD to have value, you need technological innovation and productivity. You need to export more value than you import.

Simply existing and taxing your population does not give your currency value.

[ Parent | on HN ]