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by rtpg
4542 days ago
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Proponents of the gold standard also ignore the slightly-less recent past of currency crises in Europe and Asia in the 80s and 90s, all due to fixed currency exchanges (which is basically just a variant of the gold standard, with gold being replaced by whatever basket you're using). The fact that we were able to print our way out of a crisis of confidence is a good thing, because in a gold standard world we couldn't do anything of the sort. A credit freeze would have lasted a lot longer. |
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The confidence (of the markets) is that the central bank (on behest of the government) will use currency as a tool in order to ensure that economies dont sink due due to negative outlook on the future.
There is nothing stopping central banks from creating their own cryptocurrency and controlling it by controlling all the mining (and hence being able to change the rules of deflation/inflation set into protocol). In fact a "bit-dolla" could probably be used much more effectively as such a tool since everyone would know what everyone else has as blockchain is public. Would these banks have gotten "too big too fail" if their "wallet addresses" were public?