Post
Topic
Board Bitcoin Discussion
Merits 4 from 2 users
Re: State currency 1:1 backed by bitcoin
by
HeRetiK
on 27/05/2025, 07:25:17 UTC
⭐ Merited by NotFuzzyWarm (2) ,d5000 (2)
It won't happen because in the past fiat was backed by gold, but they abandon it due to volatility, Bitcoin volatility is even bigger than gold.

I believe the way the gold standard restricted their capabilities to issue currency was a larger concern than gold's volatility, but the result is the same, given that Bitcoin is not only more volatile than gold but also even rarer.


It is possible for a government to "clog" the bitcoin network for months with frivolous transactions with high fees because they're able to print infinite money? the price of bitcoin could theoretically be 2 million/coin at that point and no one would be able to move any funds.

How would a government's infinite money printing capability enable them to clog the Bitcoin network? Fiat currencies don't pay for transaction fees, bitcoins do and it's not like the government can print Bitcoin.