You are viewing a single comment's thread from:
RE: Vlog 198: Enforce the SBD peg or not?
I'd rather peg the value of SBD to gold or silver than to any fiat currency. Why peg to something that is always losing value and has the potential to go to 0 ? Gold, while it's price fluctuates, will never drop to 0 ! ...ever! I'm fundamentally against pegging SBD to value that can be printed out of existence; we already have that, they're called Dollars, Euros, Yuan, Rubble, Intis, Soles de Oro, Pesos, LBS, Bolivares etc. I have a bank note of 1 million Intis, and you can't buy toilet paper with it.
I agree, the USD has currently been trending down for awhile. Why should we be peg the SBD to an asset that is falling in value? What if crypto-currency is the future and (eventually) all fiat money becomes nearly worthless. I do understand the desire to have a stable value for the SBD though. This is not a simple problem to solve.
All fiat currencies will eventually drop to zero; this is mathematically inevitable. It may take 500 years or 500 days, but go down it will. Gold does not have this problem; there will always be someone willing to take Gold as payment. Besides, when governments have reserves, they hold gold, and that tells me everything I need to know about their fiat money. If governments don't have confidence in their own money as savings; why should I? ..or You? If we peg crypto to anything; peg it to something like Gold. Gold sucks as an investment but is a great reserve. Greetings!