It's called Fractional Reserve Banking (FRB). It really blows my mind that a company that can literally create "money" from thin air, can fail.
It's not about the money that can be created, but about the capital that supports it. Banks are not reserve restrained, but capital restrained. And you cannot print capital (although CB's are trying very hard). |
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Why does Bitcoin have to be defended if it has not been declared illegal?
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Grizzly Taylor, although rude was very right. French politicians are doing literally everything they can to destroy the French economy. They will succeed.
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So its about $3 increase each week until the CrasH  |
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Watching the weekly chart. Not much steam left to get over $32.50, but I wish the bulls good luck  |
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The only reason all debt cant be paid back is because we would no longer have either trade or money, but that doesnt mean the books arent in balance, because they are.
I still don't understand how the 5% interest can be paid back without a default, if only the principal (100) of the loan was initially created (to take a simple example). |
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Quite the contrary: the computer revolution is only just beginning.
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Money is thus inseparable from barter.
Perhaps I have misunderstood Graeber, but isn't one of his central themes that barter economies were not the start, but credit (like 'I do something for you, and you will do something for me in the future' -> credit)? |
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I still don't understand how a loans with interest system will work in a BTC based economy. Knowing that BTC can not be created by banks via "credit expansion" and that there is a limited number of them in existence, how will the interest be paid back? With what BTCs?
Simple: produce something useful (or provide services), earn BTC and repay your loan with BTC. The closed system of BTC does not block parties from using interest. |
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Has the inventor of the Internet, Al Gore, started his machine again?
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hashes to hashes, fiat to dust
(Amen) Daaaaaaaaa,daaaaaaa,daaaaaaa |
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Will go for 1 share in Virtuemart.
When do I have to fund (when 100% is reached)?
Yes, right now you pledge. Only when the goal gets 100% reached does everyone need to pay. Ok, I assume I can pay with BTC (*hoping that BTC price won't drop like a rock in the meantime  ) |
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Will go for 1 share in Virtuemart.
When do I have to fund (when 100% is reached)?
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Yep! And buy up income generating sources like land, rentals, and depression-resistent businesses with that new FIAT is even better. When we start seeing the moderately super wealthy (Has more than millionaires, but less than billionaires) trampling over each other to buy real estate and rental complexes at seemingly ridiculous prices, it'll be a sign of impending inflation.
Another counter-intuitive result could be the relative rise of wages: labour is valued better in a hyperinflationary environment (and wages will more or less be revised in accordance with the increased amount of curreny in circulation. Those who are without (labour) income or have a fixed income are the ones suffering most. But let's not derail the topic further. |
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BTC will only take off once there is a killer use for it.
There already is. theirs a bunch of them Then my mom would be using them (the best measument device for these kinds of things) |
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If hyperinflation occurs in the fiat currencies, [...]
Lending in fresh FIAT will be a boon too, since paying of the debt after a few months would be easy (if the interest rate is reasonable)  |
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Not going to happen.
BTC will only take off once there is a killer use for it. Either mobile payments or electronic payment on the Internet. Before that, it will remain somewhat of a curiosity.
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