I think a huge missing piece here is that the value can easily be proper up by a few institutions.
Say the ETH foundation and a few another very rich orgs stake ETH at, say, at least 500USD per ETH. They will buy all ETH for 500USD.
Or say some exchanges do this for BTC.
This already seems to be in part the case, a floor for ETH and BTC has been maintained by rich buyers that control a lot of the market pulling in the whole demand.
This gives BTC and ETH some alure, at least during dips, because you have a guarantee of value.
This doesn't work for the USD, if the USD is falling the expected behaviour of the treasury is to print more USD and (insert complicate mechanism to make sure your inflation-adjusted bonds are not adjusted to the real inflation).
The expected behaviour of the exchanges if ETH or BTC fall bellow, say, 1/10th of the value today, si to use their tether/dollars/eur to buy more ETH/BTC (and they can get those currencies for cheap right now in case they need a very tiny reserve).
To me that seems to be a fundamentally important fact behind BTC and ETH, the only thing you need for them to be safer than the USD, is to have an entity that care about their value more than the feds care about the USD, and that seems surprisingly easy.
At least if I am to play devils' advocate, but I don't hold ETH, so I'm not sure how much I buy the above, I guess not a lot.
I think a huge missing piece here is that the value can easily be proper up by a few institutions.
Say the ETH foundation and a few another very rich orgs stake ETH at, say, at least 500USD per ETH. They will buy all ETH for 500USD.
Or say some exchanges do this for BTC.
This already seems to be in part the case, a floor for ETH and BTC has been maintained by rich buyers that control a lot of the market pulling in the whole demand.
This gives BTC and ETH some alure, at least during dips, because you have a guarantee of value.
This doesn't work for the USD, if the USD is falling the expected behaviour of the treasury is to print more USD and (insert complicate mechanism to make sure your inflation-adjusted bonds are not adjusted to the real inflation).
The expected behaviour of the exchanges if ETH or BTC fall bellow, say, 1/10th of the value today, si to use their tether/dollars/eur to buy more ETH/BTC (and they can get those currencies for cheap right now in case they need a very tiny reserve).
To me that seems to be a fundamentally important fact behind BTC and ETH, the only thing you need for them to be safer than the USD, is to have an entity that care about their value more than the feds care about the USD, and that seems surprisingly easy.
At least if I am to play devils' advocate, but I don't hold ETH, so I'm not sure how much I buy the above, I guess not a lot.