Bitcoin Forum

«A single reference currency is unlikely to serve as a reliable store of value over the long term and thus constitutes a misleading unit of account as well. In extreme cases, it may also fail to function as a medium of exchange for international payments if the family is shut out of the payment system of the country issuing the reference currency»

Taken from GLOBCOIN blog, a start-up that's trying to promote currency baskets (on a crypto platform) as opposed to a single currency reference. What do you think?

https://medium.com/@globcoin_io/preserving-your-global-purchasing-power-12eaff7a8a9b

What do you mean by currency baskets? Isn't that what we already have with fiat? Each country has it's own currency, or when they are part of a big economy they share the same currency (like Euro or US dollar). I don't understand what that token would achieve. I'm not an economy specialist, so I have no idea if a single currency would work or not. I don't think it will ever happen though, but I think it's perfectly normal for a global currency to exist in pair with other "local" currencies. Using bitcoin for international transactions it's much easier than using normal fiat, but the advantages are not just currency related. The fact that it's decentralized and has no need for a middle man between the transaction is the big advantage here.

Hi!

I quoted an article by GLOBCOIN CEO so he would probably be the best person to answer your questions (you can easily reach him on the ICO telegram group), but I will try:

A currency basket is a "smart" portafolio of currencies where you get to decide which proportion will have each one of the currencies inside, according to the purpose of the basket. Yes, it has been used in the fiat world before.

The value of GLOBCOIN cryptocurrency the "GLX" would be linked to a currency basket of 15 most important fiat currencies in the world and 5% gold. In my opinion when they say "global" it's not referring to a "UNIQUE" or "ONE AND ONLY CURRENCY", but more to a currency that is accepted and accesible in a global level, without crazy exchange fees.

Thank you so much for your genuine interest and enquiry :)

I think this is incredibly wrong on their main initial premise (that if it is global and non tied to any country, it will not be a good store of value).

It is precisely because of Bitcoin not being tied to any country that it can preserve it's purchasing power since it isn't tied to the never ending conflicts between countries. The very moment you are "pro-any country" you are already someone's else enemy. Bitcoin is the currency of the internet, therefore it's neutral by default to any country, it's their own policies that decide to become enemies or not against Bitcoin.

Money by the people, for the people. Sure there are some degree of manipulation with whales and stuff but it's more similar to what happens in the stocks. Issues about miners (the physical part of the system) aside, it really seem to be a very neutral currency. I don't think fiat will disappear any time soon but maybe bitcoins can be that global currency that the value can be compared with, like the gold standard in the past.

Currency baskets do not necessarily mean a collection of currencies tied to a country. You could simply have a basket of different cryptocurrencies, all with different characteristics, which you think might be safer to hold than any one cryptocurrency on it's own. It's an old hedging technique.