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What does BitCoin and Gold have in common, and why aren't they money?

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Like all this hidden in plain sight, Gold and BitCoin are "limited" things.

To be money, "currency" they need a "circuit" of "compelled" demand. All money's have this compelled demand in the form of Taxation, that is to say the "money" unit is required to circulate to "pay" taxes.

Very simple, yet tough to figure out when you have been conditioned not to see their "advantage" since childhood.

In other words, THEY GROOM YOU TO BE A TAX SLAVE!
 

the_shootist

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Gold IS money! It says so right at the top of the page here!!!

How many people would turn down gold if there was a 100% certification that the gold is real? IMHO most people who would refuse gold as payment would probably do so because they couldn't be sure if it was real.
 

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IMHO most people who would refuse gold as payment would probably do so because they couldn't be sure if it was real.

Disagree; most people would refuse it because they have their own debts denominated in FRNs to pay.
 

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most people who would refuse gold as payment would probably do so because they couldn't be sure if it was real.

That's the guarantee that makes money be money, the ultimate Guarantor is the State by accepting it for taxes, the compelled demand.
 

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That's the guarantee that makes money be money, the ultimate Guarantor is the State by accepting it for taxes, the compelled demand.
....unless the State is itself corrupt...like most governments over all times.

I think it's a combination of all of those. The uncertainty of the true makeup of a bar or coin; plus they're accustomed to thinking of money in terms of fiat. Plus the fact that gold doesn't have legal-tender status.

As for Bitcoin...all it is, is coding. The ultimate fiat. It has NO physical properties, and to transact it, an infrastructure is required. And that infrastructure is controlled, partly (and at growing levels) by government.

Bitcoin may be useful for those who want to safely move money across international boundaries (for the moment) but that's about the only use I can think of, for it.
 

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Banks do not create money out of thin air

Pontus Rendahl, Lukas B. Freund 14 December 2019

In recent years, some have claimed that banks create money ‘ex nihilo’. This column explains that banks do not create money out of thin air. From an economic viewpoint, commercial banks create private money by transforming an illiquid asset (the borrower’s future ability to repay) into a liquid one (bank deposits); they would quickly be insolvent otherwise. In addition to bank solvency representing a constraint on private money creation, banks require access to liquid reserves in order to be able to engage in money creation.


https://voxeu.org/article/banks-do-not-create-money-out-thin-air
 

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Release of the Kraken: A Novel Money Multiplier Equation’s Debut in 21st Century Banking


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Abstract

Historically, the banking multiplier has been in a range of 4 to 100, with 25% to 1% reserve ratios at most layers of the banking system encompassing the majority of its range in recent centuries. Here it is shown that multipliers over 1 000 can occur from a new mechanism in banking. This new multiplier uses a default insurance note to insure an outstanding loan in order to return the value of the insured amount into capital. The economic impact of this invention is calculably greater than the original invention of reserve banking. The consequence of this lending invention is to render the existing money multiplier equations of reserve banking obsolete where it occurs. The equations describing this new multiplier do not converge. Each set of parameters for reserve percentage, nesting depth, etc. creates a unique logarithmic curve rather than approaching a limit. Thus it is necessary to show the behavior of this new equation by numerical methods. Understanding this new multiplier and associated issues is necessary for economic analyses of the Global Financial Crisis.
http://www.economics-ejournal.org/economics/journalarticles/2012-3/
 

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Richard Werner on bank money creation: