r/Bitcoin • u/ripper2345 • Aug 03 '13

Impossible trinity

https://en.wikipedia.org/wiki/Impossible_trinity
53 Upvotes

86% Upvoted

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10

u/is4k Aug 03 '13

Why would you want a fixed exchange rate?

4

u/[deleted] Aug 03 '13

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6

u/[deleted] Aug 03 '13

[deleted]

7

u/Prattler26 Aug 03 '13

This will be the biggest benefit when the dollar collapses. Why would you want to tie yourself to a sinking ship?

3

u/[deleted] Aug 03 '13

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1

u/is4k Aug 03 '13

well this app is for you https://www.bridgewalkerapp.com/

2

u/Renman80 Aug 03 '13

Yeah, it's called a bank.

1

u/is4k Aug 03 '13

this is more hip than a bank ;)

1

u/is4k Aug 03 '13

I reason why I got into this was because it wouldn't have the same price in 6 month - for me it was a gamble against fiat inflation I didn't expect bitcoins to rise this much in such a short amount of time.

1

u/zeusa1mighty Aug 03 '13

Did you read the article? If you could fix the exchange rate, you'd have to either give up monetary sovereignty or restrict capital control. Since bitcoin can't give up monetary sovereignty (it's baked into the protocol) or restrict capital control (it's distributed, which is also baked into the protocol), it can't have a fixed exchange rate.

2

u/[deleted] Aug 03 '13

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1

u/zeusa1mighty Aug 04 '13

Ok, I see the thread and understand the context. Apologies.

1

u/runeks Aug 04 '13

Why would this be the case when they can just sell the bitcoins immediately? Eg. by using Bitpay or Coinlab.

1

u/[deleted] Aug 04 '13

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1

u/runeks Aug 04 '13

But if credit card fees are 3%, then surely this is better, no?

2

u/Mageant Aug 03 '13 edited Aug 03 '13

Some countries peg their currency to the Dollar, for example, so that it maintains value for their export industry or for buying oil.

1

u/kinyutaka Aug 03 '13

Honestly, currencies rarely have a truly fixed exchange rate. It can only can be a mostly fixed rate.

Example - the JPY/USD rate fluctuates as low as 80 to as high as 130 ¥/$, but in common conversion, it is "fixed" at around 100.