Quote:
Originally Posted by AmeliaG
Fair point regarding small consistent inflation, although this is only the case for central banks which use the interest rate as a lever.
While a few central banks manage for the export benefits you mention, most notably China, most are more concerned about managing for strength.
The Baht has been more volatile than Bitcoin. They are usable in different places. I live close to Thai Town in Los Angeles, so I could probably buy dinner with either Baht or Bitcoin here, but there are few places where both would be useful currency. I don't know of any place in 2014 where I could buy dinner for a particular denomination of sea shell, do you?
All currency is essentially an instrument which represents value beyond its intrinsic value. Being made of code doesn't strike me as making Bitcoin different from currency made of paper.
What is the difference?
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Pretty much all nations are concerned about the export and currencies impact to it. Not just China. For example Germany has greatly benefited from euro, as euro is much lower in value than would Germany's own mark be. If country has meaningful amount of export, it will not go after just currency's strength, as that would be "death toll" for its export industry.
About bitcoin, you couldn't buy shit with witcoin for example 10 years ago. Maybe the sea shells are just ouf of fashion, but who knows.
Bitcoin's characteristics are the difference, the main difference, and also how accepted it is. Its main characteristic (deflatory) is the one that every other currency pretty much tries to avoid.
It's kinda funny that Bitcoin fans keep it as its best quality, but it is in fact the worst. LOL.