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RE: Why do we need Bitcoin (BTC)

in HODL2 years ago

There is so much inaccurate about this article.

You never even mentioned ledger based money which was in place starting in the 1500s.

Fiat money is unlimited and inflationary.

This is not true. In fractional reserve banking, the money supply is expanded when commercial banks lend. So they have to make loans, which are not unlimited, before the money supply expands.

Of course, when we have loans paid off or default, money is contracted.

Central bank reserves (liabilities) are not legal tender.

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Hey Taskmaster :)

Thank you for your feedback.

It may well be that I have forgotten a few steps in the history of money.
For me, it was just important that the readers understand a little bit how we came to the current situation.

I've never heard of a ledger-based money before.
I will inform myself about this and maybe I'll include it in this post.

Probably I expressed myself a bit badly with the term unlimited, when I talked about Fiat money.
What I'm actually saying is that our current money doesn't have maximum supply and we can't predict how much will be pumped into the economy in the future.

I am always open to other opinions and also willing to learn.

  • Have I forgotten anything else?
  • Why was ledger-based money abolished?
  • Do you agree with my other points?
  • Do you also deal with the topic of crypto or just with monetary policy in and of itself?

I wish you a nice day.

Thank you for your time. :)