There is a difference. For instance let's say UK rejoins EU and has to adopt the Euro. The pound gets depreciated as people switch currencies. It's the responsibility of the government to make sure people can exchanges their pounds for euros at a fair rate.

You can't do that with crypto currencies because there's no authoritative body who will be willing to take the worthless currency and exchange it for another currency without any initial value being lost.

There are plenty more example where the lack of an authoritative body (which is what people consider the benefit of crypto) is actually not good for the user.

[–] Ajen@sh.itjust.works 1 points 1 year ago (1 children)

You're saying if the GBP starts to lose value the UK government will start exchanging the now-worthless currency for another more valuable currency like USD or EUR to keep its value up? Where do you think the UK government will get all this foreign currency? Wouldn't they run out of money and go bankrupt at some point?

[–] GoodEye8@lemm.ee 0 points 1 year ago* (last edited 1 year ago) (1 children)

No. I said that if the country is going to switch currency, from example pound to euro, then the government will facilitate that switch even though the pound is going to become worthless. But you are kinda hitting the nail on the head. The government will make sure they have Euros to exchange to and they will "take a loss" when people bring their pounds for exchange (I won't get much into the will they go bankrupt question because the US has 32? trillion in debt and the US hasn't gone bankrupt so I'm not sure if countries even can go bankrupt).

Now apply those two question to crypto and answer them. Let's say one day people want to switch from bitcoin to something more viable (which is a very realistic thing to happen because the underlying tech can depreciate) who is going to facilitate that currency exchange? Who is going to stock up on this new currency and who is going to buy the now worthless currency?

[–] anarchy79@lemmy.world 0 points 1 year ago (1 children)

I am sorry but I sense that you are speaking out of ignorance of how markets work, I do not mean to be condescending at all, I wanted to meet your points but it would have been a wild goose chase of squaring out the faulty premises and conclusions. Here's an article on bankrupted nations in recent times: https://www.tbsnews.net/world/6-major-countries-went-bankrupt-recent-times-453426

[–] GoodEye8@lemm.ee 1 points 1 year ago (1 children)

Neither do I but nothing about your comment comes even close to my point was making. The bankruptcy aspect is just a minor detail that can be easily dismissed by common sense, no government is going to change currency if it bankrupts them. If it does then it's just bad governance.

That's all I'm going to say on that topic.

[–] anarchy79@lemmy.world 0 points 1 year ago

I think you need more schooling.

[–] Stumblinbear@pawb.social 1 points 1 year ago

Uh, I mean, I can exchange BTC for USD all day, not sure why you're not able to