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Te Reagan's avatar

Wouldn’t Bit Coin and tokens be constantly outside money? Type of foreign money?

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Dr Gerry Brady's avatar

Bitcoin and other Crypto's are all digital tokens/digital commodities. They can never replace money. 98 % of our money is created as a bank loan .... most of which are backed by real estate as collateral. 2 % is created as physical cash issued by the Sovereign as a non interest bearing loan. Bitcoin and Crypto have no intrinsic value. They are akin to collectible baseball cards.

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AAS Economics's avatar

There are some significant problems with this reasoning. The claim that war results from sound money ignores the funding of wars over centuries by central bank monetization of government debt. Take away that funding and the wars can't be financed. The constant boom and bust cycles that we have seen for over a century have all be driven by money creation and destruction. Track all of this magic money nonsense here: https://aaseconomics.substack.com/

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Dr Gerry Brady's avatar

Please provide evidence for this statement -- "the funding of wars over centuries by central bank monetization of government debt." and "Take away that funding and the wars can't be financed."

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