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The money in a bank is not paper currency. Your deposit is backed by as little as 3% cash reserves. My original point was that crypto is a medium of exchange, l
by elil17 7y ago
The money in a bank is not paper currency. Your deposit is backed by as little as 3% cash reserves. My original point was that crypto is a medium of exchange, like cash, not that it is a store of value, like bank account deposits.
- arcticbull 7y ago> The money in a bank is not paper currency. Your deposit is backed by as little as 3% cash reserves. Utterly irrelevant so long as it's backed by the FDIC. Nobody has lost a single penny since the Great Depression to a bank failure. Not during COVID. Not in 2008. Not ever. > Your deposit is backed by as little as 3% cash reserves. I'm not sure the Bank of Tether even has that much on hand, and it defines the pricing of all cryptocurrencies. > My original point was that crypto is a medium of exchange. It's not a useful medium of exchange due to its insane volatility and high implied and direct fees. > ...not that it is a store of value, like bank account deposits Cash and bank deposits are a medium of exchange and an intentionally lossy store of value. This is all pretty much ECON-101.