Hello everyone! In today's 100-day challenge in the crypto space, we are going to discuss the Impossible Triangle in cryptocurrency and monetary theory. This is a classic theory in economics that is also used to explain the challenges and trade-offs in the decentralized design of cryptocurrencies. The core of the Impossible Triangle is that a monetary system cannot simultaneously meet three goals and must choose two of them. So, what specifically is the Impossible Triangle in cryptocurrency? Let's explore together!
Balancing three balls ⚖️
Imagine trying to hold three balls with both hands: each ball represents a goal. No matter how hard you try, you can only stably hold two; the third ball will always drop. This is the core challenge of the Impossible Triangle.