Most of the problems that come from government mismanagement of central systems, and therefore it is rare to find a country that has voluntarily devalued its currency to compete commercially and gain its products added value.
Many countries randomly print money, which results in inflation and fluctuations in the exchange rate, which leads to a deterioration in the value of the currency, and this problem is solved by centralized currencies.
In general, don't be strict and think of it as black and white, both systems can work side by side.
Topic: Alternatives to centralized currencies, alternatives to decentralized currencies - page 2. (Read 252 times)
June 24, 2021, 02:10:37 PM
June 24, 2021, 04:33:01 AM
I accept your discourse as a theoretical discussion really. The developed and non-developed nations are far from renouncing their fiats, even El Salvador that accepts bitcoin as a legal tender keeps the USD as a currency.
I have said this a few times, but anyway:
- The nations can create fiat by simply only accepting certain currency to pay for taxes. That immediately creates a market for it and thus is easy for everyone to adopt it.
- The nations are not going to renounce their fiat because it is a legit instrument of monetary policy that could actually be used correctly, as opposed to what is happening today.
- The governments are not going to renounce their fiat because they can effectively make their citizens poorer as needed by the simple means of devaluating, which causes less havoc and distress than letting inflation creep up.
And there are many other causes, so yes crypto and government issued are going to coexists as long as the citizens who have the right to vote keep on voting people to fool them into believing that everything is going fine.
I have said this a few times, but anyway:
- The nations can create fiat by simply only accepting certain currency to pay for taxes. That immediately creates a market for it and thus is easy for everyone to adopt it.
- The nations are not going to renounce their fiat because it is a legit instrument of monetary policy that could actually be used correctly, as opposed to what is happening today.
- The governments are not going to renounce their fiat because they can effectively make their citizens poorer as needed by the simple means of devaluating, which causes less havoc and distress than letting inflation creep up.
And there are many other causes, so yes crypto and government issued are going to coexists as long as the citizens who have the right to vote keep on voting people to fool them into believing that everything is going fine.
June 24, 2021, 03:30:48 AM
I have been thinking how the world would be without centralized currencies, also thought of how decentralized currencies are very important, diversity but yet alternatives can enhance economic growth and development, improving standard of quality living. How will the world of the so called only fiat or only crypto will be, let us be realistic. In my opinion, it is not going to be easy.
Assuming the world only had embraced decentralized currencies like Bitcoin in certain time in past, if no fiat was supported, or if nothing like CBDC, this may lead to the developed nations to have the total wealth of live. Taking Africa as an example, the African nations depend more on imports than exports, if there is no fiat devaluation the developing and the underdeveloped nations are using to protect their foreign reserves, they would lack more than these days. Assuming if only decentralized currencies are existing, the developing and underdeveloped countries will use all their decentralized assets for import and nothing will be left, this will be a great suffering while developed nations will be enjoying while the less developing countries like African countries will depend on them.
The centralized currencies which are centrally manipulated to protect individual country's foreign reserve, it helps in discouraging import to certain extent. Although, decentralized currencies helped in cross border payment but the value of dollar and other fiat help in still maintaining the balance, helping in the distribution of cryptocurrencies all over the world. It even happen in a way that most trading p2p are even within the people of the same country trading fiat for cryptocurrencies and yet maintaining the balance.
But the governments are centrally manipulating the fiat and to come CBDC will also be manipulated in such ways as fiat to protect their foreign reserves, protecting foreign reserve is very important to countries development and progress but total centralization is not good and will deprive citizens of freedom. Like in Nigeria, the international monthly spending using Master card was reduced to $100 monthly in 2021 IIRC, which means Nigerians citizens in their country can not be able to buy goods and services from abroad more than $100 monthly using Master card, this is the other side of fiat which make decentralized currencies better because decentralized currencies like Bitcoin gives freedom, not centrally manipulated and yet deflationary and appreciative in design.
So, this led me to the conclusion that both centralized currencies and decentralized currencies are important in economic growth and development. It only remain someone to be wise in a way to use both to increase wealth, especially decentralized currencies like Bitcoin during bullrun which is another topic of discussion.
Assuming the world only had embraced decentralized currencies like Bitcoin in certain time in past, if no fiat was supported, or if nothing like CBDC, this may lead to the developed nations to have the total wealth of live. Taking Africa as an example, the African nations depend more on imports than exports, if there is no fiat devaluation the developing and the underdeveloped nations are using to protect their foreign reserves, they would lack more than these days. Assuming if only decentralized currencies are existing, the developing and underdeveloped countries will use all their decentralized assets for import and nothing will be left, this will be a great suffering while developed nations will be enjoying while the less developing countries like African countries will depend on them.
The centralized currencies which are centrally manipulated to protect individual country's foreign reserve, it helps in discouraging import to certain extent. Although, decentralized currencies helped in cross border payment but the value of dollar and other fiat help in still maintaining the balance, helping in the distribution of cryptocurrencies all over the world. It even happen in a way that most trading p2p are even within the people of the same country trading fiat for cryptocurrencies and yet maintaining the balance.
But the governments are centrally manipulating the fiat and to come CBDC will also be manipulated in such ways as fiat to protect their foreign reserves, protecting foreign reserve is very important to countries development and progress but total centralization is not good and will deprive citizens of freedom. Like in Nigeria, the international monthly spending using Master card was reduced to $100 monthly in 2021 IIRC, which means Nigerians citizens in their country can not be able to buy goods and services from abroad more than $100 monthly using Master card, this is the other side of fiat which make decentralized currencies better because decentralized currencies like Bitcoin gives freedom, not centrally manipulated and yet deflationary and appreciative in design.
So, this led me to the conclusion that both centralized currencies and decentralized currencies are important in economic growth and development. It only remain someone to be wise in a way to use both to increase wealth, especially decentralized currencies like Bitcoin during bullrun which is another topic of discussion.
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