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Author Topic: btc value and currency inflations  (Read 901 times)
SquallLeonhart
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November 02, 2020, 08:24:18 PM
 #101

USDT is not actually "stable" in the sense that you could have 100 usdt that will always worth 100 dollars but that same 100 dollars will not be able to buy the same things it can buy today that it could have bought 5 years ago, there is inflation and that means your 100 usdt loses its "value" even if it doesn't drop in price

Well, that's not how "stableness" of USDT is defined

It should be stable with respect to its underlying asset, that is to say, the American dollar. It is a stablecoin whose value is pegged to the dollar, and as long as this peg is maintained, it is rightfully considered stable regardless of how much the dollar itself depreciates. Therefore, you can't say that USDT will be losing "value" along with the dollar. Fundamentally, you are implicitly trying to redefine the idea of a stablecoin but that only destroys it
That is what I am talking about. It s definitely a stable coin in the sense that unless tether as a company bankrupts or runs away with our money (which is a possibility that very few people considered unfortunately) 1 usdt will always worth 1 usd and that is the stable part people talk about.

However I do not like the word stable in this sense since it makes people think that the more usdt you have the richer you will get and that is not the word for rich neither, if you are not beating inflation even if you have more dollars that means you didn't get richer. If I buy a house worth 100k dollars today and in 5 years that house worths 150k while some other guy kept his usdt and his 100k became 120k, he "lost" money while he was still stable and that is what I am talking about.

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November 02, 2020, 08:34:23 PM
 #102

It should be stable with respect to its underlying asset, that is to say, the American dollar. It is a stablecoin whose value is pegged to the dollar, and as long as this peg is maintained, it is rightfully considered stable regardless of how much the dollar itself depreciates. Therefore, you can't say that USDT will be losing "value" along with the dollar. Fundamentally, you are implicitly trying to redefine the idea of a stablecoin but that only destroys it
That is what I am talking about. It s definitely a stable coin in the sense that unless tether as a company bankrupts or runs away with our money (which is a possibility that very few people considered unfortunately) 1 usdt will always worth 1 usd and that is the stable part people talk about.

However I do not like the word stable in this sense since it makes people think that the more usdt you have the richer you will get and that is not the word for rich neither, if you are not beating inflation even if you have more dollars that means you didn't get richer. If I buy a house worth 100k dollars today and in 5 years that house worths 150k while some other guy kept his usdt and his 100k became 120k, he "lost" money while he was still stable and that is what I am talking about

You are only further confusing matters

Stable in stablecoin has a very specific and established meaning. It means a peg and being stable means being able to keep or maintain this peg. You, on the other hand, are at first implicitly and then openly attributing a totally different meaning like being able to beat, or stay on par with, inflation. For this, there already exists a term which pretty much speaks for itself and which is inflation-protected, say, inflation-protected bonds and, hypothetically, inflation-protected coins

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November 02, 2020, 08:49:38 PM
 #103

Sounds funny but reasonable, I have almost assumed such before, I felt, since Bitcoin will always be measured in us dollar how about when the dollar value depreciates I'm my country, doesn't it automatically mean the value of bitcoin has dropped too.  I don't want to accept with those who says the value of US dollars cannot drop. It definitely can. Because it's value is determined by your country's currency rate to it.
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November 02, 2020, 10:39:43 PM
 #104

Sounds funny but reasonable, I have almost assumed such before, I felt, since Bitcoin will always be measured in us dollar how about when the dollar value depreciates I'm my country, doesn't it automatically mean the value of bitcoin has dropped too.  I don't want to accept with those who says the value of US dollars cannot drop. It definitely can. Because it's value is determined by your country's currency rate to it.
This is a big dilemma by many nowadays, especially now that USD is beginning to show signs of decline. I'm thinking bitcoin will still retain its value even if the fiat it is connected to depreciates in value. If anything it will make bitcoin have a bigger impact. Think of it as the Venezuelan bolivar. It became so inflated that the people out there started using USD instead because you'd need a sack full of bolivars just to buy a hotdog. This could induce a force adoption of bitcoin which is good
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