Comment on SEC says it will deregulate cryptocurrencies with 'Project Crypto'

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rottingleaf@lemmy.world ⁨3⁩ ⁨days⁩ ago

Well, it should have went to some value from no value. So initial volatility was to be expected.

While the current volatility - I don’t know, I guess it’s because a transaction is expensive and takes some time. If transactions would cost almost nothing and were almost instantaneous, I’d expect the volatility by now to not be very big. And if there were no premined coins, of course.

And if there were inflation built into the system. BTC proponents boast how it having no such artificial mechanism is good.

They, 1) don’t understand that having inflation stabilizes a currency, because there’s a stimulus to spend practically and not as part of speculation, 2) don’t understand that what they would want to imitate, gold, has inflation too.

So - inflation and cheap and fast transactions are what would make BTC less volatile. It would be a less lucrative speculative active.

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