Post
Topic
Board Economics
Re: Is bitcoin actually protecting fiat money?
by
Mastsetad
on 27/05/2018, 07:25:10 UTC
The biggest threat to fiat money is inflation. Inflation can be cured by injecting wealth into the economy and by that rising enough belief to keep the system afloat. This can be done for instance by occupying foreign countries and by that opening up new markets to the companies that are essential to the economy. Or this can be done by loose regulations with the derivatives markets, that will create wealth out of thin air and high hopes.

Can it be that pumping of the crypto markets is just another financial shenanigan created to keep the old system afloat?
They are creating new wealth out of nothing with cryptos, just like with derivatives. The made up wealth that is created, is actually backing the value of fiat. This would make sense why regulators seem so blind on goxdollars and tether.
I don’t really think so, there isnt such connection between them both. Just like someone here. Said, it does  remove some. Fiat transactions and it also acts to combat inflation and does the opposite too.. So if you think that the pumping of the crypto market is another way of keeping the old system afloat, I don’t think you’re right.