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by tphyahoo2
1523 days ago
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I think a bitcoin economy in stablestate would have about the same amount of lending as a gold economy under the gold standard. There is enough history during gold standard periods to have some idea how this would be. https://en.wikipedia.org/wiki/Gold_standard These times weren't perfect, but no time ever is. In short there would be less lending than under fiat with MMT, but certainly not zero lending. On the plus side, much more stability, and no hyperinflations, ever. Seems worth it to me. |
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Why would it reach more stability?
Historically, cryptocurrencies have been significantly more volatile, not less. Arguments were made back in 2013[0] that:
> this volatility will decrease as Bitcoin markets and the technology matures
But volatility has remained consistent over the past 10 years[1], seemingly uncorrelated to its adoption, market cap, and coin supply. In the same period, USD was an order of magnitude better[2].
[0]: https://web.archive.org/web/20130916231759/https://bitcoin.o...
[1]: https://vlab.stern.nyu.edu/volatility/VOL.BTCUSD%3AFOREX-R.G...
[2]: https://vlab.stern.nyu.edu/volatility/VOL.DXY%3AFOREX-R.GARC...