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by DennisP
2970 days ago
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It remains to be seen how that will work out. If your equivalency were correct, we'd expect the issuance of new currencies to reduce the value of old ones, and so far we're not seeing much evidence of that. Hayek wrote a book arguing that a system of competing privately-issued currencies would ultimately result in currencies with stable value. Of course we haven't yet seen evidence for that either. |
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I'm not sure what evidence we should even be looking for here, but certainly the share of Bitcoin in the cryptocurrency markets has dropped alongside its value[1]. Anecdotally, most people I've talked to holding, say, ETH, would be holding more BTC otherwise, so it's hard to argue that the competition doesn't depress the price.
As for the Hayek reference, I have some thoughts on that: https://paulbutler.org/archives/stop-dragging-hayek-into-bit...
1: https://coinmarketcap.com/charts/#dominance-percentage