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by whatshisface 2473 days ago
Why would anyone back a cryptocurrency whose operator can simply whisk new coins into existence?
2 comments

Unless there's some other factor in place, you probably shouldn't.

This is not the case here, though. Stellar has been sitting of huge piles of coins (par for the course these days at least) that they are now distributing.

This is different from US dollars how?
The US government is ultimately beholden to US citizens, who don't want to get hosed by inflation. People who can't vote in America do actually have a legitimate reason to be concerned: if the US ever can't maintain its debt, it will likely become in the voter's interests to devalue the currency to nothing. That's basically the "default risk" on Treasury bonds.
Approximately 300m people vote for, pay taxes to and support the creators of US dollars, the US government. Approximately 8 billion people recognise the US dollar as a global unit of value exchange which has a known local currency value.

A new cryptocurrency is just a database with some private keys shared remotely.