Hacker News new | ask | show | jobs
by repomies691 3788 days ago
But what would make me to use cryptocurrency with a negative interest rate? Of course all kind of cryptocurrencies can exist, it wouldn't be a surprise if there were already some kind of negative interest-rate model in some of the 100's of altcoins. But the user decides what kind of cryptocurrency he uses.
3 comments
Ntrails 3788 days ago
I decide what kind of global currency I use, and how it is stored. But in the same way trading in and out of bitcoin costs money, so does FX.

Until large numbers of retailers accept bitcoin directly it's just a different currency with a less stable exchange rate, lower liquidity and a higher potential for low tech users to get their money nicked.

link
germanier 3788 days ago
You can't use a cryptocurrency on your own. The network effect is strong and it's unlikely that more than a few useful cryptocurrencies will emerge.

There is a reason why negative interest rates exist now. It would be foolish to assume that those reasons go away and won't be implemented into cryptocurrencies in the future if they are used widely.

link
repomies691 3788 days ago
Based on your comments, I don't think you understand cryptocurrencies very well. Who would get the money from negative interest rates? Miners?

If miners are so powerful that they can change the protocol rules, why they wouldn't just raise the block reward? ( increase inflation/monetary expansion)

link
germanier 3788 days ago
I do understand how cryptocurrencies work. Negative interest rates don't have the same effect as inflation and could be implemented in code. Just because miners have the same nominal changes in their wallets doesn't mean that the effect on anyone else is the same.

I just don't think our current problems with currency go away just because we use cryptocurrency. There is no reason to. Central banks don't enact policies because it's fun but because they think it will have a certain effect. People will find a way to do so in the future. Whether it's called "Inflation" or "negative interes rates" or whatever is not relevant. The only thing that matters is what happens to people's money.

Oh, and it would be much easier if you would actually reply to my comments (instead of yours). If neccassary wait a few minutes to do so.

link