Hi Ev'rybody.
Last days we witnessed a 20% crash in bitcoin, not to sepak about other crypto, including ETH that had the most solid growth till then.
These anomalies, as good as they might be for day traders, does not speak well about the BTC as a reserve currency.
As I said before, there's a reason why paper money was pegged to gold prices and reserves. Because any currency needs a reference value if it is going to avoid those dramatic ups and downs. The euphemism of USDT is just out of question.
And even though I'm strongly against any regulation of BTC or any other crypto, I have to say, leaving it freely float poses dangers such those I said, plus manipulations of speculators who can, by their own operations, affect prices at will.
So, I will insist that crypto needs a value reference. And as I said in my other posts, the best reference value is ENERGY. The most pure asset in the universe.
And there's got to be a way to tie the value of bitcoin to Joules. There's already SOLARCOIN, but to be honest I'm not sure how that is working.
Future economy has to be energy-based.
Please feel free to download my proposal in pdf:
Teraflops and Terawatts at:
https://drive.google.com/open?id=0B7JgGimv_JMJaWdYQXdtb1RVZVEGreets,
http://estaciontrend.blogspot.com/Bitcoin is pegged to something though. Security, continuing usage by people/others, transaction validation, store of wealth etc. All of these things are built into having bitcoin. These are not built into a dollar. Many other systems have to operate to validate dollar spending, mobile armored cars used to transfer money to banks, security in vaults/storage, etc.
A whole system compromises the worth of a dollar, which you rightly point out has gone down due to not being attached to gold any more. Remembering back to the time of buying a hershey bar for 5 cents, now it is a dollar or more. The dollar has been devalued many times over, some say by over 97%.
BTC is fine with what it has, but needs innovations to bring in more user friendly options for mass adoption.