pull down to refresh
10 sats \ 2 replies \ @kepford 3 Feb \ on: Is the existence of fiat a negative externality for bitcoiners? bitcoin
Never thought about this framing of fiat.
Is fiat really nonviolent? If you listen to lord Krugman dollars are valuable because we pay taxes in them. The IRS requires we us dollars. There are legal tender laws and plenty of regs dissuading use of bitcoin as currency. This is done by threat of violence is it not?
Maybe I am misunderstanding but we are not in a truly free market of money. As fat as the US and most governments are concerned bitcoin is not money right?
Ok, it's not exactly non-violent, but those regs are not that restrictive in most of the developed world. You're allowed to transact in sats and you're surely allowed to save in sats.
Fiat owes its dominance more to people's free choice than the threat of violence, even if the latter does indeed exists (enforceability is another story).
On the road to hyperbitcoinization though, taxes may be the last thing we need fiat for... if they're still around, that is.
reply
Thanks for the explanation. I get what you are saying.
Another angle I'm thinking of is free will. While that is the case, a large percentage of people would switch money in an instant if their authorities told them it was the thing to do. Your broader point is spot on though.
reply