4 ms·
> Everything worked fine when central banks succeeded in defending the gold standard. No, this is revisionism. By the way, you could totally use a gold standa
by orwin 4y ago
> Everything worked fine when central banks succeeded in defending the gold standard.
No, this is revisionism.
By the way, you could totally use a gold standard nowadays in a centralized communist country, but if you believe in debt, risk and all that liberalist stuff, better not go back to that.
In modern economies, as production and population increase, you need more money in the system. If money is not available (because backed by gold), you'll need to augment your fractional banking ratios. One minor banking crisis and it's 1797/1893 all over again.
- Geee 4y agoBitcoin doesn't need banks, because it can be practically self-custodied, and therefore the economy runs mostly on full reserve. Fractional banking is still possible, but the risks are contained within private banks and their private IOUs. You don't need more money, because Bitcoin is infinitely divisible. It just means that the value of Bitcoin increases, when demand grows or productivity increases.