Can't trust ethereum or bitcoin for the same reason we can't trust the fed and their "quantitive easing":
1. It's way complicated
2. It's fiat
3. Nobody understand who really is in control of its value
It's NOT fiat currency, it's a product that can be used to exchange funds, evade taxes, go around a country's poor economy, make a buck via day or long-term trading / investing, etc. It's an investment product; nobody uses it as fiat outside of dodgy darknet websites, and whatever webshop does accept it only does so to hold onto it for a while and hope the value increases.
There's too much inflation and uncertainty for it to be a fiat currency. I mean the value of BTC fluctuated 1000% in the span of just a couple of years.
If it weren't too complicated, then it would just as well be too simple. But really, you cannot measure the efficacy of a solution by measuring your own ignorance.
During the past decade, the Federal Reserve has created 4 trillion dollars out of thin air in an attempt to prop up the economy. The Fed seems hesitant to unwind that as it carries the risk of harming the economy. Fiat money can always be created out of thin air, and it seems to be proving difficult for those in power to resist that temptation.
>During the past decade, the Federal Reserve has created 4 trillion dollars out of thin air in an attempt to prop up the economy.
During the 1840's to 1860's we created billions of dollars out of thin air by mining gold from the ground in California. Fiat currency saves us the digging.
Money is not a static "thing" that definitely exists. Markets need liquidity. QE has provided that liquidity as the vast majority of capital in our society has become locked up by the top 1%. If anything, they could increase the flow of QE because of how low inflation is right now.
