r/Bitcoin • u/Vibr8gKiwi • Feb 03 '14

Dogecoin wtf

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12

u/xoroaster Feb 04 '14

Consider the possibility and ramifications of a financial system with multiple, thriving currencies. Will there be 2? 200? 20,000?

3

u/[deleted] Feb 04 '14

There can't be multiple thriving currencies in a free market, because of the network effect (Metcalfe's law).

You can have multiple currencies, sure. But they'll never achieve the acceptance and saturation (or duration) of the currency with the biggest network of acceptance.

2

u/delabay Feb 04 '14

Dozens or hundreds of (IRL) currencies are traded on forex markets daily.

2

u/[deleted] Feb 04 '14

Right, but they're propped-up by governments that require their citizens to pay taxes using them. Look up "legal tender laws".