• makeasnekOP
    link
    fedilink
    English
    arrow-up
    1
    arrow-down
    11
    ·
    edit-2
    6 months ago

    My point is that the US dollar fluctuates in value as well. It loses purchasing power, by design, because it’s an inflationary currency. Which means it loses value over time. BTC might go up, it might go down, but it’s not literally designed to lose value. 2-3% per year is Fed policy goal in “good years”, our recent inflation has been bad because it’s beyond that.

    The US govt can swap BTC for USD or other currencies instantly if they want to.

    • Bassman1805@lemmy.world
      link
      fedilink
      arrow-up
      8
      ·
      6 months ago

      The US dollar is never worth less nor more than than 1 US Dollar. If you owe a debt in USD, the size of that debt does not change based on the purchasing power of the dollar.

      • makeasnekOP
        link
        fedilink
        English
        arrow-up
        1
        arrow-down
        11
        ·
        edit-2
        6 months ago

        Yes but that dollar buys less stuff. And that 1 dollar represents 1/total supply, and total supply increases. It’s literally worth less even if it is still “one dollar”.