v9n8: Allison on Scharding on Non-Centrally Regulated Currencies and VolatilityPosted: October 26, 2021
A COMMENTARY ON Tobey Scharding (2019), “National Currency, World Currency, Cryptocurrency: A Fichtean Approach to the Ethics of Bitcoin,” Bus & Soc Rev 124(2): 1–20.
Tobey Scharding claims that Bitcoin’s lack of a central regulator makes it open to price fluctuations. I argue that a currency not having a central regulator does not necessitate it being more volatile than centrally regulated currencies. First, I argue that Scharding’s reason for suggesting that Bitcoin is open to price fluctuations – its potential to face legal restrictions – is also faced by centrally regulated currencies. Second, I use silver in London as an example of a non-centrally regulated currency with relatively low price volatility when compared to other centrally regulated currencies showing that non-centrally regulated currencies are not necessarily more volatile.
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Andrew Allison is PhD student in the Department of Philosophy at the University of Calgary.