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Cash was "adopted" because it is backed by the United States Federal Reserve System. It is legal tender. It is fungible: every checking account is equal. It i
by hapless 13y ago
Cash was "adopted" because it is backed by the United States Federal Reserve System. It is legal tender. It is fungible: every checking account is equal. It is issued by regulated institutions, people who sue you are obliged to accept it, and the IRS will take it as payment.
This was not always the case.
Before the advent of central banking, cash was just as dodgy as Mt. Gox internal transactions. You were unlikely to be able to use cash more than five miles from the bank that issued it. Balance statements were purely arbitrary because you had no insight into your (unregulated) bank's books. In the 19th century, transactions across long distances looked more like hawala than anything the modern man would recognize as banking.
This satire was written by someone who does not understand what he or she is attempting to satirize.
- waterlesscloud 13y agoSince you're aware of the history of the US central bank, you are also no doubt aware that its invention was the subject of highly contentious debate that lasted decades. It was by no means an easily accepted invention and many, many people ridiculed and mocked it along the way. Perhaps the author understands what they're satirizing a bit more than you're giving them credit for.
- e12e 13y agoThere was a lot of (justified IMHO) controversy around the formation of the Euro union as well. I'd say it's a little crazy for one country to have 40+ currencies -- and apparently so did a lot of people -- but it certainly is a tool for independence (which is why I think the Euro was a bad idea and the Dollar was a good idea).
- spuz 13y agoThe fact that bitcoin is not legal tender is not an argument that the article parodies. Just because there are real arguments against bitcoin does not mean that the others cannot be parodied.
- hapless 13y agoParodying only the convenient criticisms is an important editorial choice by the author.
- anonymoushn 13y agoBeing legal tender means a group of thugs who regularly rob me accept this currency but not others. If we must tolerate being regularly robbed by thugs, this is a desirable feature in a currency, but it would be better to not be robbed by thugs at all.