So you don’t take into account at that moment that even hard currency is valued everywhere using the fiat currency of the same dollar or euro;
Hi Wise,
the fact that hard currencies are valued in fiat currencies doesn't matter.
Let's make an example
the CHF (Swiss franc) is harder than the USD.
The fact that the CHF is valued in USD doesn't matter.
Why?
Because the USD can be valued in CHF too!
You can value gold in USD
and you can value USD in gold
You can value gold, USD and CHF in silver
you can value gold, USD and silver in CHF
you can value USD, CHF and silver in gold
etc.
The unit of measure that people use in order to value something is meaningless.
You can chose any unit of measure that you like.
Since the USD has been the world most used currency, it's easier to use it as international unit of measure.
That makes comparisons between assets... countries... time periods... easier.
That means nothing.
even hard currency is valued everywhere using the fiat currency of the same dollar or euro;
That's not true.
Did you ever heard about the
gold/silver ratio?
It values gold in silver - and conversely, silver in gold.
It shows how much gold do you need in order to buy a gram (or an ounce... a kilogram... a ton...) of silver.
It shows how much silver do you need in order to buy a gram (or ...) of gold.
There are precious metals traders that use the gold/silver ratio, not the gold/fiat currency ratio in order to trade gold vs silver.
The unit of measure that people use in order to value something is meaningless.
You can chose any unit of measure that fits your purpose.
there is no difference in supporting a stable coin with gold or directly directly with dollars or euros
Of course there is a difference
A stablecoin representing 1 US dollar loses purchasing power just like 1 USD does.
A SC representing 1 CHF loses PP just like 1 CHF does.
Since CHF is a currency harder than USD, the SC representing 1 CHF loses less PP than the SC representing 1 USD.Big difference!
A SC representing 1 apple loses (or gains) PP just like 1 apple does:
if that apple is more valuable tomorrow (e.g. today you can exchange it for 1 banana, tomorrow for 2 bananas), the stablecoin representing that apple has gained purchasing power.
A stablecoin representing 1 gram of gold loses (or gains) purchasing power just like 1 gram of gold does.
Compare how much purchasing power 1 USD has lost in the last 20... 50... 100... years... with how much purchasing power 1 gram of gold has lost (or gained) in the same period of timeBig difference!