Bitcoin Will Fix The Triffin Dilemma
As the U.S. sees wealth disparity increase due to the dollar's status as a world reserve currency, Bitcoin offers an alternative.The below is from a recent edition of the Deep Dive, Bitcoin Magazine's premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.“The Triffin dilemma or Triffin paradox is the conflict of economic interests that arises between short-term domestic and long-term international objectives for countries whose currencies serve as global reserve currencies. This dilemma....
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Travis Patron is the founder of Diginomics, a bitcoin news organization where professionals can enroll in the Bitcoin Economics Course. Here he explains why the stateless nature of bitcoin holds the potential to solve an age-old international monetary flaw. Although the United States Federal Reserve Note carries with it many advantages for conducting commerce and serving as a world reserve currency, its makeup is not void of imperfections. One of the main shortcomings of the US dollar is the Triffin dilemma, a problem which arises when countries must manage both short term domestic and....
Dylan LeClair discusses the bitcoin market, inflation and the Triffin dilemma.
The RAI stablecoin will attempt to bring stability to DeFi markets with the long-term goal of becoming a stable global reserve asset not tied to any nation’s currency. New Ethereum-backed stablecoin RAI hopes to be the savior of the DeFi sector by providing a truly decentralized stablecoin alternative. Developed by blockchain startup Reflexer Labs, RAI is not pegged to any fiat currency and its monetary policy is managed by an on-chain, autonomous controller. It's a fork of Maker's DAI. RAI co-founder Ameen Soleimani explained:“RAI is an asset backed only by ETH, governance-minimized, and....
Traditional currencies are failing, and research has shown that cryptocurrencies may be susceptible to the same shortcomings. Much like a pandemic, inflation has spread throughout the world, clouding the future with dark uncertainty. Disagreement over how to best manage soaring prices in the United Kingdom nearly caused its economy to collapse and subsequently led to the resignation of Prime Minister Liz Truss after just 44 days in office. Currently, at least 10 emerging economies are hyperinflationary, with more expected to follow. And the Federal Open Market Committee (FOMC), the part of....
As the debate over the trustworthiness of stablecoins intensifies due to Terra, one expert thinks builders should push for the coins to be decentralized with a clear use case. In light of recent market effects due to the collapse of the Terra USD (UST) stablecoin, several questions should be answered about what makes a stablecoin usable as the crypto market expands.Co-founder of crypto financial service provider VegaX Holdings Sang Lee favors decentralized stablecoins over their centralized counterparts but thinks they must be coins that people can trust, which poses a dilemma for the....