El Salvador to adopt Bitcoin as legal tender

Post by ineedasername » Mon, Jun 07, 2021, 12:25 AM UTC

Geee wrote: post #68

auxym wrote: post #53

Earlier quoted context omitted.

Deflation is not something desireable in macroeconomics. It incentivizes hoarding cash instead of spending it on productive things (hiring people, capital investments to improve productivity, etc). Slow and steady inflation is a stated goal for most governments and central banks.

Nah. When things are cheap, people will go shopping. When things are expensive, people will save. It's a naturally self-correcting mechanism. Every deviation from the expected deflation would be an opportunity for arbitrage. Also, the deflation isn't guaranteed, so it carries a risk, which disincentivizes hoarding.

Post by cinntaile » Mon, Jun 07, 2021, 1:02 AM UTC

rualca wrote: post #367

cinntaile wrote: post #244

Earlier quoted context omitted.

There are several alternatives nowadays, you're being dishonest by only mentioning the most controversial one.

For the sake of argument, what's the absolute best alternative to Tether that you feel could safely be used as an example? Because you quickly resorted to ad hominem attacks even though you failed to provide any alternative or even a single counter example.

Post by vivab0rg » Mon, Jun 07, 2021, 1:53 AM UTC

simonebrunozzi wrote: post #210

Well, it this is really true and going to happen, I am glad. In 2014 I was writing a book on Bitcoin, which I never finished. In the various interviews I did with influential people at the time (Yanis Varoufakis, Rick Falkvinge, Chris Dixon, etc), when offering my view, I used to say that the tipping point would have been a country adopting Bitcoin as currency, and guessing it was going to happen by 2020. I was wrong…

Post by fladrif » Mon, Jun 07, 2021, 3:19 AM UTC

narrator wrote: post #361

fladrif wrote: post #245

Earlier quoted context omitted.

The linked article doesn't address the effects of deflationary currency at all, it describes the notion of including capital in the description of economies.

It criticizes the statement by Keynes that savings leads to depression due to underconsumption and thus there must be regularly monetary stimulus, meaning expansion of government borrowing and hence, the money supply. Hayek was a proponent of the gold standard and fixed money supply at this time and the Keynesians promoted fiat money and a flexible money supply and monetary policy.

Post by elsalviador » Mon, Jun 07, 2021, 3:27 AM UTC

PragmaticPulp wrote: post #134

yosito wrote: post #39

If creditors were obligated to accept Bitcoin, does that mean that to be a creditor, you must maintain a Bitcoin address/wallet? Or could you still just say, "Sorry, you still have to pay in USD because we don't have a Bitcoin wallet"?

It's concerning that the government has partnered with one particular startup company with a specific Bitcoin app for this. Depending on how the laws are written, essentially forcing people to use a specific startup's app to transact in the country could be the most egregious example of regulatory capture we've seen in recent history.