“Deflation in a debt based money system increases the real value of debt, resulting in a downwards economic spiral. For Bitcoin, it is less clear what the implications are.”
Would Bitcoin’s mass adoption fundamentally transform the financial system?
"Although Bitcoin may not necessarily result in a superior economic model...Bitcoin may have some properties that make the economic model...unique or perhaps interesting, compared to the possible models that came before it. Therefore it does look like an area worth examining." https://t.co/dDWHUy6YP0
Very lucid and, I think, fair piece on the properties of Bitcoin from @BitMEXResearch. Key insight – it conjoins the properties of digitized information with the discretion of hard cash. Good way to celebrate the first day of Year 10, Anno Satoshi
For us real people to take the creation of money out of the hands of a permissioned few (about 8,000 people worldwide) banksters. This is THE way to end endless fake wars, fake terrorism, fake news, oppression of the poor and mass surveillance.
Welcome to the silent bloodless revolution my friend.
As usual, I'll take the abstract of the article as the submission statement:
We look at common misconceptions with respect to how banks make loans and the implications this has on the ability of banks to expand the level of credit in the economy. We analyse the inherent properties of money which ensure that this is the case. We then consider why Bitcoin might have some unique combinations of characteristics, compared to traditional forms of money, namely the ability to transact electronically and avoid a third party financial intermediary, thereby avoiding the need for bank deposits, which fuel the credit cycle. We explain the implications this could have on the ability of banks to engage in credit expansion.