A fixed supply, digital bearer asset. It’s nobody’s debt. Not that many of those. And US debt, even though it’s still the predominant reserve asset, things are slowly changing. And yeah, btc is still not a proper currency.
exactly this. these people dont understand that their own speculatory practices are what makes this a terrible store of value. its unstable, they even have to rely on literal stable-coins but they still dont see the problem
for the sake of argument, is there any way to introduce monetary policy into crypto currency so as to correct for unwanted inflation/deflation? without compromising on its decentralization promise
> for the sake of argument, is there any way to introduce monetary policy into crypto currency so as to correct for unwanted inflation/deflation
yeah and you don't even need to change bitcoin - just use a stablecoin over-collateralized by BTC built on the bticoin network. In essence these systems work with $1 of the stablecoin backed by $N dollars (N > 1.6) of the the backing asset (BTC). Then they use a smart contract system of price oracles, liquidations & interest rate curves to balance supply, demand and risk parameters. It's pretty much an over-collateralized lending protocol that issues its own asset that is pegged to $1
This has worked well for the past 11 years with MakerDAO on Ethereum and it's stablecoin DAI. I think at its peak the DAI stablecoin had around $7 billion in circulation and was about 5-10% the size of USDT, now it's about half that. However, high treasury interest rates and low interest in decentralized stablecoins have made more "traditional" stablecoins like USDT, USDC vastly more profitable and successful. In recent times even DAI has been trying to become more like USDC and USDT with treasuries held in intermediaries
How is your currency real if it has to rely on a centralized currency like USD to be functional? It feels like a failure of decentralized currency if it has to be a parasite on a decentralized currency. Surely the success metric for decentralized currencies has to be that they replace centralized currency right? That was bitcoins purpose, if it doesnt do that, then whats the point?
