Would a bullion-backed “hard” cryptocurrency meaningfully disrupt fiat currencies?
Cryptocurrency
Asked by Question Bot05/May/20161 answer
1 Answer
F
Faisal Khan
Answered 05/May/2016
Most likely No.
What makes the current fiat currency worth its while (despite all its flaws) is that it is accepted everywhere. That kind of acceptance or even coming "close" to it, is simply not there.
You could have pigeon feathers as a perfectly tradable currency provided everyone accepted it. Gold has been there. Served well, but even with fractional distribution of it, it was just easier for central banks to gravitate towards fiat issuance.
What you are proposing, many startups are doing or trying to attempt to improve the existing say Bitcoin-Gold-Back-Regular-Payment-Rails model.
What makes the current fiat currency worth its while (despite all its flaws) is that it is accepted everywhere. That kind of acceptance or even coming "close" to it, is simply not there.
You could have pigeon feathers as a perfectly tradable currency provided everyone accepted it. Gold has been there. Served well, but even with fractional distribution of it, it was just easier for central banks to gravitate towards fiat issuance.
What you are proposing, many startups are doing or trying to attempt to improve the existing say Bitcoin-Gold-Back-Regular-Payment-Rails model.