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Basic Questions about Cryptos / Re: Antonopoulos- we should separate money from the state
« on: Today at 04:56:14 PM »QuoteNo matter that the idea seems interesting, I wonder who would control the finances in that case - because if there is no central bank and other regulatory institutions, what would the financial system of a country look like?
Bitcoin.
There are some countries which uses usd directly. Panama, Ecuador.. so, it can workout without a central printing.
Well, if we were to remove central banks from the equation, what about the volatility of Bitcoin? A man gets paid in BTC today, and within a few hours the price of BTC drops by 10% or lower - not to mention that on-chain transactions are not instant and can sometimes be quite expensive.
Bitcoin unfortunately has a lot of disadvantages if you want to use it as a currency in the sense that it is used by a lot of people every day. Of course, LN is one of the possible solutions, but there is still volatility and dependence on on-chain transactions.
I don't think this volatility will last forever. It is already smaller than 5 years ago.
If you take a look at emerging markets, the volatility is very high as well. It is common to see a 10-20% drop in value within just a few months here in Brazil. Just take a look usd/brl.
It is still has a smaller volatility than bitcoin, but I think bitcoin price will stabilize someday