Bitcoin, and more generally, cryptocurrencies, are often described as a new type of money. In this post, we argue that this is a misconception. Bitcoin may be money, but it is not a new type of money. To see what is truly new about Bitcoin, it is useful to make a distinction between “money,” the asset that is being exchanged, and the “exchange mechanism,” that is, the method or process through which the asset is transferred. Doing so reveals that monies with properties similar to Bitcoin have existed for centuries. However, the ability to make electronic exchanges without a trusted party—a defining characteristic of Bitcoin—is radically new. Bitcoin is not a new class of money, it is a new type of exchange mechanism, and this type of exchange mechanism can support a variety of forms of money as well as other types of assets.
RT @nic__carter: Alright, so this is insane. Given that other Fed branches have opined intelligently on the topic, I'm kind of shocked to see this level of ignorance, misclassification, and abuse of language from the NY Fed
Alright, so this is insane. Given that other Fed branches have opined intelligently on the topic, I'm kind of shocked to see this level of ignorance, misclassification, and abuse of language from the NY Fed
Who cares what they think? It’s out of their hands. They have no handle on it at all. Just trying to fit a square peg in a round hole. They will be irrelevant soon enough. No one will be talking about the “Fed” in the not too distant future. The age of private “money” is here. Enjoy the ride.
Serious question. If the Government ever did make the determination that crypto is "illegal" and ISPs had to report any activity or ISPs could block crypto activity...What then? Like is there anyway that BTC or crypto could survive that or would it basically evaporate to nothing?
Ethereum, on the other hand, is not fiat. A major source of demand is the gas fee. There are other examples as well.
Slick424Silver | QC: CC 42, BTC 35 | r/Buttcoin 66 | r/Pol6 months ago
> Ethereum, on the other hand, is not fiat.
1 ETH doesn't represent any unit of any commodity, therefor it's fiat too.
>A major source of demand is the gas fee.
That doesn't matter. Otherwise the USD wouldn't be fiat either because it's needed to pay taxes.
What percentage of ethereum's demand comes from its use as a currency or speculative vehicle? Admittedly, it's still low, and close to fiat, but slightly less so than bitcoin, and most crypto is pretty damn close to being fiat.
To piggyback on another's comment: "Doublespeak" never appears in George Orwell's *1984* but "doublethink" and "newspeak" (which do) are basically the same concept.
Doublespeak is when language is deliberately changed to make an appalling act seem more palatable. One example would the use of the term "enhanced interrogation" instead of "torture" by agencies to justify their cruel acts. It's a bastardization of language to help the bad guys.
Can you believe that there is actually a doublespeak award that is handed out yearly? US Department of Defense won it 3x.
Why the hell most powerful multi trillion dollar central bank writing and trying explain Bitcoin? Bitcoin is nerd money I heard. Or is it not? Is it about to uproot the mere existence of central banks?