Post
Topic
Board Economics
Re: Is bitcoin actually protecting fiat money?
by
akram143
on 21/06/2019, 18:49:58 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.
still now the connection between the normal currency and the bit kind is not possible but maybe the future will be like that to protect the normal currency with the help of Bitcoin is definitely needed at that situation the statement will really true.