Someone called J.Powell decides the price of US dollar. Bitcoin fixes this by inserting an algorithmic monetary policy, never seen in human history before.

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malfist 3 days ago | parent | next [-]

How does Jerome Powell decide the price of a dollar? How does an algorithm fix that? What is being fixed?

	▲	jpadkins 2 days ago \| parent \| next [-]
		Jerome Powell sets the future price of the dollar by setting a goal that is achieved by the Fed creating dollars and buying bonds (or selling bonds). > What is being fixed? A small group of people decide how much currency is circulated and can be used as debt, which creates inflation or deflation. Also there is no democratic process that can be used to control this small group of people, other than a repeal of the Federal Reserve Act of 1913. > How does an algorithm fix that? As an example, Bitcoin's algorithm has a fixed schedule in which new BTC is created. People can voluntarily use or not use BTC as a currency based on this currency creation schedule (vs. arbitrary creation that comes with fiat currency). This algorithm can only change by actors that take hashing majority on the Bitcoin network.
	▲	stephen_g 2 days ago \| parent \| prev \| next [-]
		Maybe in their head it's still back before 1976 where we have the Bretton Woods system, there's no foreign exchange market and policymakers set the price of dollars against gold?
	▲	m00dy 3 days ago \| parent \| prev [-]
		Dude, you might not belong to our civilization. Sorry.

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DANmode 3 days ago | parent | prev [-]

If by “price of the US dollar” you mean “direction of financial sentiment”, then yes.

But that’s a big mistake.