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Correct. Except most of us don't keep all our money in our wallet or under our mattress. We keep it in a bank. Which is insured by the federal government. B
by JohnTHaller 13y ago
Correct. Except most of us don't keep all our money in our wallet or under our mattress. We keep it in a bank. Which is insured by the federal government. Bitcoin is akin to keeping all your money in a big bag in a single location if you don't back it your digital wallet offsite.
- dllthomas 13y agoThat is the local effect, which is the same for cash vs bitcoin and different for deposit vs bitcoin (though of course there is nothing preventing bitcoin-denominated deposits). The global effect for bitcoin is more like nuking a bit of gold - you have reduced the total supply permanently - whereas for cash we can just print more.