• dx1@lemmy.world
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    1 year ago

    How does one “implement” the equation for calculating GDP? All the (descriptive) variables in the equation are already present. IDK how that got 4 upvotes.

    Several major cryptos are already used as media of exchange. That’s the actual criteria for “success of a currency”, relative usage. They haven’t overtaken USD, but let’s not pretend it’s just a speculative vessel, Ethereum sees over a million transactions per day.

    • aidan@lemmy.world
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      1 year ago

      You cannot, but you can increase money supply money supply more stably when following average GDP growth, and increase money supply more when velocity decreased- and atrophy the supply when it increases. And a currency is much more than just what people can spend at a store. It is what people keep their savings in, what companies pay their employees in, what banks lend.

      This cannot be done with an unstable currency- you cannot have a debt that will either go up or down 20% in value in the same year. I do not think fiats are inherently more stable, but some fiats have proven to be somewhat more stable because of responsible central banking- its not a good idea to count on central banks being responsible for ever. But essentially all widely spread cryptos continue to have a significant amount held by speculators and therefore they cannot be stable currencies.