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In the discussion thread: why fiat currencies are stable [View all]

Response to paulkienitz (Original post)

Wed Jan 19, 2022, 03:33 PM

3. Love the topic


Why are they stable? Mandated by the government and taxing authorities (ie, fiat). Well, and today wrt the USD, by US military might. The day the Federal Reserve comes out with their "coin", all others will fall.

Digital coins are like going to the casino. Nothing more, nothing less.

Why can't coins be used like the USD? Exactly as you said - stability. Imagine spending Bitcoin for two pizzas just 10 yrs ago

...and you're $384 million in the hole. Yes, you read that right [link:https://decrypt.co/71713/bitcoin-spent-on-two-pizzas-in-2010-now-worth-384-million|

This is why they can't be used as a medium of exchange.

The French saw this exorbitant privilege, and the US defaulted on our currency as a result. ][link:https://en.wikipedia.org/wiki/Exorbitant_privilege|

As far as gold is concerned, you absolutely cannot discount something that the central banks across the world hold as their only physical asset and the basis for the Euro.... everything is paper until the game ends, and all the central banks have left is gold.

Something in the back of my head says they don't play to lose, either.

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