>>2324I forgot to mention one last big issue. I touched on it by describing cryptocurrencies volatility, but forgot to go into more detail. That being:
convertibility. I think this comes as something of an oversight when discussing cryptocurrency, given it's nature, but when it comes to currencies and the acceptance of foreign currency for international exchanges there is ZERO question that you can reliably use a credit or debit card in any country or when making online purchases. Occasionally there are fees imposed, particularly with in-person transactions, or with ATM foreign currency exchanges, but often international purchases have no additional fees. Again, this may come as something of an oversight, but when it comes to the ability to use an ATM, even in other countries, it's a mostly painless process to get local physical currency. ATMs are extremely numerous, and especially at international travel destinations, and airports, physical foreign currency exchanges are also very common.
This comes in contrast to cryptocurrencies because the medium
is the asset. Whether it's converting between USD and CNY, or CAD and JPY, or EUR and SEK, or CHF to WON, etc. there's very little volatility in exchanges rates because on-balance, currency exchange rates are determined by international trade expenditures and revenue, foreign currency reserves, and above-all
exchange rate to the US Dollar as the world reserve currency. Generally speaking, the biggest source of volatility in exchange rates tends to be as a result of domestic inflation; ergo, if your country's currency has inflation, your currency will be weaker in relation to other currencies, and thus the price of foreign goods will become more expensive, however, if you have an export-oriented economy this devaluation can make the price of domestic goods artificially cheaper for foreign buyers. So, to give an example, if Brazil has high inflation, importing foreign goods may become more expensive, but for other countries the price of agricultural products out of Brazil, such as soy beans, will decrease relative to their previous price. In the long run, these trends are generally self-stabilizing absent dramatic economic intervention by governments so that prices and exchange rates remain relatively stable. This is largely why Neoliberal economists advocate for free t
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