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by CamelCaseName
2905 days ago
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I strongly agree with your GGP comment, but the point of BTC is not money is a bad one. How much money do you have if you receive 1 BTC? Check the spot price after several confirmations (or one to none, depending on your facilities) How much money do you have if you receive $1MM USD? Check DXY in ~3 business days when your deposit clears. Now yes, of course BTC fluctuates in value substantially more than USD, but this is not a problem in BTC, but rather in the existing market conditions. Your comment is akin to saying that USD was not money in the 1930s. Apart from that contention, I completely agree that BTC has not (and in my opinion, will not) disrupted SWIFT. |
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USD has the benefit of active management from a central bank, active management from Congress, and being a government-backed currency with a minimum threshold of demand (being the currency which is used for government spending and taxation).
Insofar as a completely different universe where BTC is an actively-managed currency of a world superpower is "existing market conditions" then yes, BTC is just like the USD. /s
The better comparison is gold, which is a commodity like Bitcoin, and yet much more stable than BTC. Thing is, there is also a minimum level of demand there, for jewelry and industrial purposes. Small, but real. Nobody actually has an interest in Bitcoin stability, it's just investors who want to make money on it going up or down. So... it does.
(the real rollercoaster was back when Tether was printing hundreds of millions of dollars on a daily basis and injecting that into the crypto-economy. Ever since they knocked that off, it's been hanging around the $6000 mark.)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3195066