Post
Topic
Board Bitcoin Discussion
Re: "Bitcoin cannot become an alternative to fiat currency"- says Yanis Varoufakis
by
Ucy
on 29/07/2020, 15:57:14 UTC
Famous personality, Greek politician, and former Finance minister, Yanis Varouakis recently responded to the open letter sent to him by Bitcoin socialist Ben Arc. In reply, he said that Bitcoin’s dominance is a threat to the economy and social life. What made him to reply this? Read more https://coinpedia.org/news/massive-bubble-would-be-built-on-bitcoin-criticizes-top-politician/

His point is that bitcoin can not be self-regulatory being that it is a decentralized system which means the market forces will dictates what happened. But, fiat system runs on regulatory mechanism, the central bank controls the supply of money(Ms). when there is bubble and it burst, the central bank will intervene unlike the bitcoin system.

Here is what i think, bitcoin can run and be able to self-regulate itself in order to avoid such bubbles.

Self-regulatory" or price partly getting determined by occasional regulation built into the code, couple with possible hidden regulations from centralized sources?
The users/community/stake-holders have to determine the "right" laws/rules/principles to regulate the cryptocurrency price via consensus. Free market or market forces should be really good or useful when it's done the right way. 
By the way, a more advanced/better Bitcoin network should be able to accommodate every true members including the traditional policy makers/regulators without restriction. What matter is that the right and qualified people keep things safe via regulation. And regulations shouldn't be centralized, so we don't get transformed into a network of secrecy, corruption, lawlessness etc, which is typically what centralization creates.