Debunking Common Bitcoin Myths

ark-invest.com

14 points·stefanv··3 comments

In contrast to modern central banking, it does not prioritize exchange rate stability.

What the fuck are you talking about? Central bank money has free floating exchange rates. The reason the value of central bank money is not typically bouncing up and down like crazy is because of the size of the markets, which cannot be upended by one whale with a billion dollars and a head full of magic.

If you’re setting out to debunk myths, you have to get the facts right.

While I agree with you in general, I don't think it is 100% true.

Currencies of smaller states have been target of speculative attacks (https://en.m.wikipedia.org/wiki/Speculative_attack).

But actually being a fiat currency gives the central bank the means to counteract that, which bitcoin doesn't have. E.g printing money to buy foreign currency bonds to lower the exchange rate.

I fail to see that a disadvantage.

Yes, it’s true that some central banks have chosen a different side of the triangle, but the likes of USD and GBP are firmly on the same side of the triangle as Bitcoin (free flowing capital and independent monetary policy). It’s specious for the OP to claim that they are attempting to fix their exchange rates, because they are clearly not. Trying to explain Bitcoin’s enormous deflationary pressure and volatility using analysis like this is just impossible.

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