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Topic: Currency's value is decided by consensus - page 2. (Read 1801 times)

legendary
Activity: 1988
Merit: 1012
Beyond Imagination
I had an impression that everthing else's value can be decided by a market price expressed with the currency, but currency's value is only decided by consensus

For example, although 4x more money have been printed since 2008, and GDP growed at a very slow pace, the price of everything stayed relatively stable, because the consensus of USD's value has not changed, so "more USD = more wealth", not "more USD = lower USD value"

And once that consensus has been reached, without a fundamental change in the system, the value of the currency will not change

Same for bitcoin, I think its value should be decided by some kind of consensus, not supply and demand. It's arguable how to establish this consensus though
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