It’s quite clear by now that crypto redefines how people think about value and perceive it.
The consumer price index (CPI) is a way of assessing what the real value of a currency is in an economy based on things people buy.
Another peculiar index is the one from The Economist magazine, which does roughly the same thing: tracking the price of just one product around the world (The Big Mac, from McDonald’s), and it works surprisingly well.
This is just a way of showing there’s more than one way to sort out what the real value of money is, and I agree with investment researcher Lyn Alden that has argued the CPI in the U.S. somewhat undercounts inflation by not representing the full extent of the matter.
In any way you wanna put it, we can all agree that is really hard for economists and researchers to agree on an efficient way to track “real prices.”
Source: NBC News
Nevertheless, it is clear that stablecoins will do better than nation-state tracking systems in redefining what CPI actually means.
A good blockchain product will effectively reflect real product prices in the world, find the right basket that consistently represents real value relative to most people’s lives, and that’s what the decisive stablecoin will peg its price to — not some fiat currency that could go out of control with one bad administration or erratic policies.