The Future of Money and Cryptocurrency: Tethers

The Problem: Volatility

The Current Solution: National Fiat Moneys

A New Solution: Tethers

Economic Background

F. A. Hayek — Nobel Prize 1974

Economic Consequences

  1. Market-set Interest Rates — Interest rates will be set by the market instead of set by a central bank.
  2. No More Bubbles — Market-set interest rates would lead to the end of economic bubbles and busts and cause a constant boom of economic growth.
  3. Increased Investment — Currently the fear of bubbles and busts make investment shorter and more risky. Without bubbles, investors can take a longer view on their money, leading to better and more efficient investments and more economic growth.
  4. End of Too Big To Fail — Without government monopolies on money, government bailouts would be impossible. Without government bailouts the credit ratings of too big to fail organizations would be downgraded, leading to their natural break up into smaller, safer, and more resilient companies.
  5. Higher Purchasing Power of Wages — Currently central banks cause the inflation of consumer prices. Wages, correspondingly become relatively less valuable over time. In a competitive money economy there would be no inflation meaning that wages would stay strong over time.
  6. Improved Global Trade — Central banks are responsible for keeping international exchanges of currencies stable, but they don’t do a great job of it. We can expect a global, competitive, private money market made up of cryptographic tethered moneys to do a much better job.

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Educator, Founder, Engineer. Interested in Evidence Based Education and Solving BIG Problems.

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Braus

Braus

Educator, Founder, Engineer. Interested in Evidence Based Education and Solving BIG Problems.

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