Hacker News Reader

Comment by toomuchtodo | Hacker News Reader

This requires price stability, which is at odds with the use of crypto as a speculative investment vehicle. People use fiat to transact because it is stable. It’s stable because a central bank is using tools available to bring about stability.

View on HN

It's a hedge. Like anything other hedge it's not bulletproof. I'm blessed to live in a country that has sound monetary policy (you do too probably). But there are millions (if not billions) of people who don't. Crypto offers a way to avoid capital controls when governments fail. It's not the crypto itself, its just the most convenient way. See: https://restofworld.org/2021/the-cryptocurrency-dons-of-beir...

Sort of agree. Find ways to issue them digital wallets with fiat currency support. Venezuelans using Zelle to transact in dollars comes to mind. It’s a financial inclusion and digital identity story, high level. But if you’re violating nation state laws (AML/KYC/money laundering/capital controls), you’re not likely to avoid repercussions for that, state monopoly on force and all that jazz.

https://www.coindesk.com/markets/2020/06/16/venezuela-is-a-t...

There are decentralized stable coins such as Dai that survived massive crashes/volatility in the past and still remained on peg. Crypto ≠ Bitcoin.

Unless you have a nation state backing the currency, its speculative assets all the way down.

Reply on news.ycombinator.com