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RE: IMF Director Says Banks Need to 'Stay in the Game' as Crypto Could 'Reduce Demand for Central Bank Money'
Haha ok you're totally fucking with me playing devil's advocate now.
The value of a pegged asset is not for a store of value. Everyone knows USD loses value over time. The value of a pegged asset is to avoid bearish losses and get vendors to accept crypto as payment because they cry all day about volatility.
Haha. I really have no allegiance to either USD or bitcoin. I do support the tech but thats the problem I was stating with vendors right now. They want something stable so they can convert at same price. Bitcoin should stand on its own.
Let me explain that differently.
Lets say you get 1000 hot dogs for 1 bitcoin.
Vendor pays .2 bitcoin for a 1000 buns.
Bun seller buys flour for .1 bitcoin.
At this point, it doesn't matter if bitcoin is worth a dollar or 100. Thats how currency is supposed to work.
If lets say flour seller only accepts USD then the whole system is can't work because bitcoin USD value has a role to play now. For a currency to be currency, all parties need to accept.
Hope this makes sense.
Right you are.