Hold on one minute, if you have ever shopped for anything using Bitcoin the prices fluctuate with the value of the coin so you are always paying the same amount in USD. (I know this because Starbucks accepts Bitcoin) You are not all of the sudden going to save 3thousand on a car just because the price has moved. That would be cool as hell but it's not how it works. The value is always the same as the American dollar. The only difference is Bitcoin is gaining value the dollar is losing value. And the reason it has no intrinsic value is because its a currency! What kind of intrinsic value does a dollar have? You can wipe your ass with one? Wow lots of value there!
The Fed has Eliminated Reserve Requirements for All Depository Institutions
- Thread starter gaussian
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Hold on one minute, if you have ever shopped for anything using Bitcoin the prices fluctuate with the value of the coin so you are always paying the same amount in USD. (I know this because Starbucks accepts Bitcoin) You are not all of the sudden going to save 3thousand on a car just because the price has moved. That would be cool as hell but it's not how it works. The value is always the same as the American dollar. The only difference is Bitcoin is gaining value the dollar is losing value. And the reason it has no intrinsic value is because its a currency! What kind of intrinsic value does a dollar have? You can wipe your ass with one? Wow lots of value there!
Under the assumption a society moves from it's native currency to bitcoin (for example) you wouldn't be able to set the price equal to your native currency. Imagine everything goes straight to a Weimar Republic and it's 2,000,000 USD for a loaf of bread. The price couldn't be pegged to this - you would rather just spend the native currency! The value of a currency is in what it represents.
Instead another value store would need to be used. This is why bitcoin is a joke currency made exclusively for gamblers. Currencies are designed, in theory, as value stores and not debt instruments because it's burdensome to carry 8 oxen and 30 bars of gold to buy a house. Moreover, 8 oxen and 30 bars of gold aren't exactly liquid when you, the seller, need to buy food. 2/3 of an ox might be the price of a car but the seller probably doesn't want blood all over his showroom. You would need a stablecoin pegged to some value (gold?) to have it be worth anything to anyone. Moreover, addressing the trackability problem (governments/issuers of cryptocurrency can retroactively look into your purchase history) will likely create even more issues of adoption (read: governments imprisoning users of the currency).
I dont think this can get ugly at all, after all they had shit load of money and even when they got the stimulas money now and back then they barely lent out any money, just because now they have no limit doesnt mean they gonna go ham on it, basically they never hit a margin call or even close to it, why would they now just because their margin is higher? lol
Why you guys arguing with the Bitcoin believers, you know nothing gonna change their mind, the characters of the bubble participants, remember gold few years ago and silver? its gonna replace the dollar, America is ending, the world is ending buy now now now, and where did it go? lolz
There is got to be these inventions always to feed the dooms day preppers and believers other wise there is no show to keep em busy,
As warren buffet once said, if the world is ending and u got gold and silver, what you gonna do? eat it? lolz
There is got to be these inventions always to feed the dooms day preppers and believers other wise there is no show to keep em busy,
As warren buffet once said, if the world is ending and u got gold and silver, what you gonna do? eat it? lolz
The "reserves" are accounts The Treasury and Banks maintain at the Fed for the purpose of clearing bank transactions. These accounts are also a tool of the Central Banks for targeting the wholesale price of money within a narrow band. (What, in the U.S., we call the "fed funds rate" .) The fed is not doing away with reserve accounts, that would be ridiculous, they are just wisely dropping the reserve requirement. This is yet another triumph of the MMT economists who, for a long time now, have correctly recognized that monetary policy does not determine the amount of money and that as economist Randall Wray said in 1998 , "reserves are not discretionary." In practical terms this means that a "reserve requirement" is superfluous. Banks will need reserves regardless of whether they are required. (Canada hasn't had a reserve requirement for years. I guess we are trying to catch up with the Canadians. There are other ways we could benefit from copying the Canadians. It is not, however, by putting Putine on McDonald's Menu.)
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You definitely would prefer to barter for everything.
From what i belive.Bitcoin is electricity eater, mining rows of zeroes out of cryptic code , rarity of found zero arrays+users investment gives it value.
Blockchine tech should be precice until 50%+ attack and then logs should show suspicious activity if truth flips.
Also there is alot of monitorable statistics, what might hold predictive insight for future prices, making it good for speculation ,that may take regular users value away.
I think it just shows there in no trust between humans, if we need to waste power to show value for exchanging services/time/work, currency is nothing if belief is lost and noone is willing to provide any service.
Corruption is written by god into human nature. And with great power comes great corruption.
I belive it is becuase of hardness of hard labour , taking food out of ground , why people tend to scheme.
With current monetary system it might be enough if some sociopath consisting of less than 0.0000001% population takes key position and flaws system.
With bitcoin it is 50% but if someone has lot of resources could open gigantic data centers and screw btc up.But with blockchain it should leave traces.
I think it would even be calculatable how much computing power it would require and how much datacentrs would cost , how long it may take to build , how much electricity required etc. to manipulate bitcoin.
I am pretty sure noone is willing to invest it, if they would have to build all that with money earned by hard labour.
Maybe even speculants like soros could not afford it.
I would like to see some sort of voting systems based on blockchain technology where it would be hard to turn data around.
Is it true that same people connected to fed actually control media as well?
Plenty of conspiricy theories....interests and the international banking interests control the media.
Blockchine tech should be precice until 50%+ attack and then logs should show suspicious activity if truth flips.
Also there is alot of monitorable statistics, what might hold predictive insight for future prices, making it good for speculation ,that may take regular users value away.
I think it just shows there in no trust between humans, if we need to waste power to show value for exchanging services/time/work, currency is nothing if belief is lost and noone is willing to provide any service.
Corruption is written by god into human nature. And with great power comes great corruption.
I belive it is becuase of hardness of hard labour , taking food out of ground , why people tend to scheme.
With current monetary system it might be enough if some sociopath consisting of less than 0.0000001% population takes key position and flaws system.
With bitcoin it is 50% but if someone has lot of resources could open gigantic data centers and screw btc up.But with blockchain it should leave traces.
I think it would even be calculatable how much computing power it would require and how much datacentrs would cost , how long it may take to build , how much electricity required etc. to manipulate bitcoin.
I am pretty sure noone is willing to invest it, if they would have to build all that with money earned by hard labour.
Maybe even speculants like soros could not afford it.
I would like to see some sort of voting systems based on blockchain technology where it would be hard to turn data around.
Is it true that same people connected to fed actually control media as well?
Plenty of conspiricy theories....interests and the international banking interests control the media.
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To the contrary, this is just beautiful. It will help to raise S&P 500 above 200 daily SMA:
This train will not be stopped. S&P 4500 in no time. And then inflation will set in ....
10yr yield will rise to 3,20%.
Funny thing is - 100% of BitCoin "evangelists" are using fiat money to pay their rent, their banking fees, credit card fees, tuition fees, flight tickets, hotel reservations asf.
BTW: how is that money laundering business going?
With regards to the original post and reserve requirements, etc. The main thing I have learned from studying history for decades, is that most humans never learn much of anything from history ...