Post
Topic
Board Economics
Re: Is bitcoin actually protecting fiat money?
by
Leh-Meh
on 19/06/2019, 19:24:51 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.

only laws of demand and supply apply to world economy. More demand than supply, prices goes up. More supply than demand, price falls.