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you have omitted some of game theory. States and Companies will deal across border with each other in the currency that the seller will accept.

Sellers have the power. And in cross border situations there is little any central bank can do about it.

It has already happened to Russia. Many of its big companies now pay in Yuan for goods from China, and now take loans in Yuan too. The Rubel (@ 16% interest) is something only the Russian citizens use, to their determent.

When Bitcoin is worth more international trade will drive central banks to hold it. Aware citizens will cash out of their government scams, vis-à-vis Argentinaians into USD.

hh 1y ago 💬 2

That's pretty much what I said, and one of my key points to argue that BTC will never achieve medium of exchange, a.k.a, currency status among retail, which will continue to use fiat. Both because they will be priced out of transacting with BTC by the big economic actors (I repeat: transacting with BTC, not simply buying it), and because States will simply continue to issue fiat and force them to use it.

Even in places like Argentina, the USD is not used for common daily stuff (a.k.a., "buying lattes") but for bigger and longer term transactions. In fact, the USD is rather used for savings, that is, as store of value, as another form of property, which is eventually converted to the local currency when it's time to transact. Just like Bitcoin.

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Low Information Voter 1y ago

Sadly I agree.

Proof of Violence > Proof of Work.

Except in "black" and international markets.

hh 1y ago

And talking about black markets, once billionaires, companies and public sector actors adopt BTC, let's see what happens with KYC and AML.

I am stacking as much non-KYC as possible, and mixing as much as possible. But I have no illusions about never having to "come clean" and enjoying my anonymous millionaire status. My hope is that when that time arrives, I will be able to simply move the a jurisdiction that's advantageous and respects my private property as much as possible. In the meantime, it's just as a way to avoid scrutiny and premature confiscation right now, right here.

nobody 1y ago