I tried buying something using crypto on Coin base back in the day. Signed up, transferred $100 into Eth, had to wait two or three days for Coinbase to do their due diligence or whatever, and then it was down 50% by the time I could use it. (I think China banned crypto or something?) I just pulled out my credit card and bought the item directly, and never touched crypto again
The problem is that the item you were buying was priced in terms of fiat currency, such as dollars or euros. When items are priced in crypto, then they don't fluctuate, because, for example, one bitcoin will always be one bitcoin, no matter what. Whereas a dollar will not always be a dollar. A dollar in 1914 would have bought a lot more than a dollar does today. The three good monies are silver, gold, and crypto. The first two can only be manipulated by going into space and getting asteroids to get more, and the third can only be manipulated by worldwide community consensus, which is really hard to obtain.
But with a hard coded money supply, you cannot control inflation. The inflation won't be in terms of dollars, it'll be in the number of coins required to buy whatever, you know like how inflation doesn't make euros less valuable versus dollars, it makes euros less valuable versus bread
Now imagine central bank halving their value to reduce inflation. Its the same thing but you don't have any control over the money you earned spending the time you did to earn that money. If there was an alternate currency which is not controlled by any government or inflation of a single government that crypto currency.
I tried buying something using crypto on Coin base back in the day. Signed up, transferred $100 into Eth, had to wait two or three days for Coinbase to do their due diligence or whatever, and then it was down 50% by the time I could use it. (I think China banned crypto or something?) I just pulled out my credit card and bought the item directly, and never touched crypto again
The problem is that the item you were buying was priced in terms of fiat currency, such as dollars or euros. When items are priced in crypto, then they don't fluctuate, because, for example, one bitcoin will always be one bitcoin, no matter what. Whereas a dollar will not always be a dollar. A dollar in 1914 would have bought a lot more than a dollar does today. The three good monies are silver, gold, and crypto. The first two can only be manipulated by going into space and getting asteroids to get more, and the third can only be manipulated by worldwide community consensus, which is really hard to obtain.
But with a hard coded money supply, you cannot control inflation. The inflation won't be in terms of dollars, it'll be in the number of coins required to buy whatever, you know like how inflation doesn't make euros less valuable versus dollars, it makes euros less valuable versus bread
Now imagine central bank halving their value to reduce inflation. Its the same thing but you don't have any control over the money you earned spending the time you did to earn that money. If there was an alternate currency which is not controlled by any government or inflation of a single government that crypto currency.