time to exit all cryptocurrencies imo

Originally posted by skypiliot ↑

Originally posted by twenty3
Are you arguing that it's a good investment vehicle, or that crypto could be used as currency? I don't know about the former - I'm sure there are still plenty of people out there willing to speculate and drive up the price, although probably fewer than there previously were, but I don't really know. I'm just looking at it from an economic point of view.

As for being used as currency - I just don't see it happening. You need to be able to control the amount of money in economies to effect monetary policy specific to a particular economy, and relative to other economies through exchange rates. Look at all the problems associated with the Euro... countries like Greece are essentially stuck in recession due to a complete inability to lower their exchange rate and make them more competitive on the world stage. On the other hand you have Germany, amassing a huge trade surplus. One way out of it would be for Europe to have a common reserve bank to equally distribute money throughout the EU. Similarly for crypto, there would need to be a common reserve bank for the entire world, fairly distributing wealth across the globe in the best interests of advanced and developing economies... maybe this will happen in a couple of hundred years, but I mean come on.

Crypto is only worth what someone else is willing to pay for it.
Its already being used as money to a limited degree in countries like australia where the economy is reasonably sound to a larger degree in countries like venezuala where the government has failed to control the economy.

What you are not allowing for is at the basis one of the things it designed to stop is the loss of wealth( theft) that Governments commit through inflation.It was a child of the GFC and it has lasted ten years while continuing to grow despite all sorts of attempts to sidetrack it by individuals who wish to profit from it

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I never said it was impossible to use crypto to make purchases. I said it was entirely impractical and would never replace fiat.

Inflation is theft? What the. You've no idea what you're talking about. 2 - 4% inflation is one of the characteristics of a healthy economy. Zero inflation would kind of imply that demand, supply, and therefore the price of goods and services within a free market economy is stuck in place and never change, which is ridiculous. 2 - 4% is an accepted target by economists worldwide and provides the freedom for prices to move up and down freely in line with market forces. Also, inflation is largely controlled by expectation theory. The simple act of the government stating that we have an inflation target is largely all that's needed to control it.