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RE: The Mathematics of Fractional Reserve Banking

in #mathematics8 years ago

You obviously just figured this out recently. I'm looking forward to your next post when you explain the other half of the story, the one that explains why society hasn't collapsed yet and why this works.

Money is just a communication medium. A token. It's a bit like oil in an engine. It's a bit like water in a fertile field... too little water and everything dies. Too much and everything dies... the jackpot question is - how much do you need? How much is enough?

Of course - all this is difficult to grasp when you were born thirsty, and have been walking around thirsty all your life, only to find out that people who came before you invented the water you're so desperately craving.

Cryptocurrency blurs the lines between "real money" and "toy money". It makes it easier to see that all money is toy money, but that toy money can be useful... as long as everyone knows what it is, and use it as such.