~85% of money doesn't exist

[yhiaali3]

This is new and exciting information for me. This is truly terrifying. This shows how adept governments are at lying and defrauding people. What a farce.

These shameful numbers remind me of the legal problems that the US government raised against USDT and then against BUSD, claiming that it did not have sufficient coverage in dollars for its crypto assets, and now what will they say about the dollar and the euro? Do they have sufficient coverage with paper money? what a shame!!!

But the positive side is that these huge differences between bank account numbers and paper money herald the imminent end of all fiat.

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[STT]

Dont think it matters if its physical or not, the main deal about a linkage or exchangeability to anything physical or real was a bigger break of the standard to money.  Actually printing out notes wasnt that important but not allowing exchange on a set standard does ruin the principle of the money being reliable.

money in existence isn't destined for usage by real flesh and bone humans.

The money is being used, my house debt is unfortunately a real value I owe even if the only sign of it is a balance sheet print off.   Also real is the wages despite appearing purely as a computer print out at best and within days consumed by bills asking for settlement.  I would qualify all of that as real even if not physical exchange.

[Argoo]

In my opinion, this is not surprising. The market is provided with money in its various forms as much as it needs. Moreover, cash and non-cash money have equal power in the financial world. In connection with the digitalization of money, the ratio of cash and non-cash money will continue to change towards an increase in the volume of non-cash money and a decrease in the total amount of cash. Money replaces goods that are in civil circulation. And what form this money will take is not significant.

[Ucy]

I don't really have any problem with printing money as long as the money is well used . . Printing money only becomes a problem when it's used mostly for consumption or for things that are of low quality. The low quality part also affects Bitcoin, while fake bitcoins could be indirectly used to lower the price/value of real Bitcoin.
This is why it's important to have solid law enforcement to prevent such abuse . Without it there is nothing much you can do, even for Bitcoin. Our strong support (which is temporal) for certain fiat currencies like US Dollar means there will be less of such abuse, as eyes are on them, coupled with strong law enforcement. Euro may benefit from this depending on whether the managers and the economy of participating countries continue to share similar value with USD managers & economy.

[Kelward]

The bright side of this is that the awareness of bitcoin and cypto currencies will became more meaningful, it'll affect the adoption more positively. The world will gradually begin to accept the inevitable presence of digital cash, that'll inevitably phase out physical fiat currencies.

As OP has stated, it is easier for government officials and perhaps Banks to scam the economy, all they need do is corroborate with others concerned to add to the digits of money in supply. The excess will go to them, while the ordinary citizens bears the pain of inflation that will follow.

This is why I respect the creator of bitcoin, for estimating when the last bitcoin will be mined in the future. By this there'll be no question of whether excess bitcoin will be minted, more than it's total supply.

[franky1]

I heard about this also and I am not surprised. Isn’t this called something like M1 or M2 supply. Basically not the total supply of the currency but the currency out in circulation.

cash and coins is M0

M1 includes M0, plus digital transferable amounts 'in circulation' of basic deposit accounts
M2 includes M0+M1, plus amounts including short terms savings accounts, escrows and other certificates of deposits

M3 and M4 are the more complex measures of the previous plus as you go up the scale things like pension pots, long term savings, share portfolios and bank reserves

[johnsaributua]

The nominal digital money printed by the bank is used by people everywhere who accept and buy, so without control and utilized by washing assets by people with personal interests, in my country I also talk about the exchange rate is different from every month from what is obtained and I feel that its existence is increasingly absent, I believe that bitcoin is a good effort to recover from the exchange rate privately and in my opinion is not controlled by anyone, if the bitcoin growth rate can increase in the next few months with will enter the halving period, I think the money in a country will be a little saved with people more confident to increase their investment with bitcoin, my hope is that there will be a positive economic impact from the impact of an economy that has been polluted or manipulated by certain parties.

[freedomgo]

Many of bitcoin's detractors will often say that it's held by too few people. Well, look at "actual money" then. 85% of it is completely unaccounted for.
Keep this in mind next time someone says anything about bitcoin.

Everything is accounted for; that's the role of the central bank. Any money that will be created or destroyed is just like a plus or minus on their books. Maybe the right description is that 85% is not in circulation for use by the majority of the people, as mentioned; it's used by big corporations and banks for their business purposes.

[Porfirii]

Many of bitcoin's detractors will often say that it's held by too few people. Well, look at "actual money" then. 85% of it is completely unaccounted for.
Keep this in mind next time someone says anything about bitcoin.

Everything is accounted for; that's the role of the central bank. Any money that will be created or destroyed is just like a plus or minus on their books. Maybe the right description is that 85% is not in circulation for use by the majority of the people, as mentioned; it's used by big corporations and banks for their business purposes.

Many of the members who wrote here are surprised because most of the money is not printed, but they take it for granted that there is a real risk of extinction of bills and coins if the CBDCs succeed, and I'm almost sure that most of them pay with credit card even the most casual purchase.

If more physical money doesn't exist is because with a 15% seems to be enough (it shouldn't, but...).

[wajik-tempe]

The nominal digital money printed by the bank is used by people everywhere who accept and buy, so without control and utilized by washing assets by people with personal interests, in my country I also talk about the exchange rate is different from every month from what is obtained and I feel that its existence is increasingly absent, I believe that bitcoin is a good effort to recover from the exchange rate privately and in my opinion is not controlled by anyone, if the bitcoin growth rate can increase in the next few months with will enter the halving period, I think the money in a country will be a little saved with people more confident to increase their investment with bitcoin, my hope is that there will be a positive economic impact from the impact of an economy that has been polluted or manipulated by certain parties.

Although Bitcoin provides a decentralized alternative, its stability and mass acceptance remain unknown. Furthermore, its price volatility calls into doubt its efficiency as a dependable store of value. Furthermore, questions regarding the concentration of money and power inside the cryptocurrency field remain. While conventional fiat currencies have problems, they also provide stability and are supported by established governments' resources and economic policies. Finding a happy medium between the benefits of decentralized currencies and the stability afforded by established financial systems is a difficult task. It's crucial to critically evaluate both options and consider the broader economic implications before placing too much reliance on any single solution.

[DVlog]

It's because of the partial reserve system that the banking sector uses which helps them generate money from thin air. If a bank gets 100 USD from a user it can keep 10 as a reserve and use 90 to give a loan. The actual figure for this money distribution is backed by $100, but the total amount of money owned by the bank is 190 dollars. So their total wealth increased to 190 dollars, which is backed by only 100 dollars and 90 dollars they just generated by using the partial reserve system. All the banks in the world follow this system. 

[franky1]

It's because of the partial reserve system that the banking sector uses which helps them generate money from thin air. If a bank gets 100 USD from a user it can keep 10 as a reserve and use 90 to give a loan. The actual figure for this money distribution is backed by $100, but the total amount of money owned by the bank is 190 dollars. So their total wealth increased to 190 dollars, which is backed by only 100 dollars and 90 dollars they just generated by using the partial reserve system. All the banks in the world follow this system.

thats not how it works

fractional reserve system is about not having to have 100% physical money ina  bank vault for security reasons of said bank branch

fractional reserve lending is a different fraction 'pot'. for different purpose. for different function and reason

but lets delve into it
banks do not take 10% of someones bank balance to lend out..

instead imagine a bank had 1000 customers of $7.5k each account ($7.5m)
the bank without touching deposit amounts has a separate facility to allow them to CREATE $6.75m(90% comparable) of new money as loans
without taking any money from their customers..
think of it as not taking money from customers.. but more of a "heres how much we have in custody we will take a 90% risk bet and create new money to the amount comparable of 90% of custody.. "

but they want the borrower to repay that amount so the bank can burn that money(lessen the interest) to reopen/unlocked that risk allowance loan facility for the next loan

EG when 100 people ask for $1k ($100k) in a loan.. the banks facility can only make another $6.75m loans.. meaning if $100k loans are done a week, the loan risk buffer is emptied in under 68 weeks
so if more loans were made but no money was returned they cant make new loans. as the risk bufffer gets down to zero

what you find is. instead of customers deposits being used.. banks sell the already created but not settled loan agreements, to other institutions so that the other institutions pay in and burn there money to unlock the risk buffer allowance.. and the borrower pays the other institution indirectly(im over simplifying)

bank customers balance is not locked, decreased, used to fill a lending pot. its just a risk measure of how much a bank can create a pot and create new money in it to a certain tolerance based on total value under custody

[Promocodeudo]

OP, people now prefer to invest their money instead of keeping it in cash, keeping cash is worthless to me, investing your money into different business is better, any cash in your possession wouldn't have any value until you make investment out it, it is even a risk to hold physical cash in the underdeveloped world, this might attract robbers to your house, the people that helped you be it bank or individuals that helped you to bring the money can give out out information, you may lose this money in a twinkle of an eye, but when you invest in bitcoin or even real estate your investment secured and profit driven.

[dothebeats]

Most of the money that you see are just numbers pulled out of thin air through the collaboration of the government and the banks. None of those are real, tangible money that can be held physically. That is also the basis of the bulk of the world's economy, and it's surprising that they keep on pulling this off for decades without much of the system imploding on its own frequently. Well, so long as there are people willing to follow orders blindly from the government, and agree that the money they are using is worth a certain something, I guess the system wouldn't collapse.

[dansus021]

Guy do you think such a problem with fiat can be solved by Central Bank Digital Currency I mean I dont think we discussed fiat problem but where is the 85% of the money, the news is everywhere if the CBDC is adopting the crypto system it means will easy to track where is the money goes right?

[rat03gopoh]

This is new and exciting information for me. This is truly terrifying. This shows how adept governments are at lying and defrauding people. What a farce.

It is an integral part of the modern banking system, I don't know if a government can take another path out there that really implements all the banks under its regulations using a new system. If there is, it is indeed a bold policy and there may be external policy intervention from larger entities (on the scale of international relations).

Guy do you think such a problem with fiat can be solved by Central Bank Digital Currency I mean I dont think we discussed fiat problem but where is the 85% of the money, the news is everywhere if the CBDC is adopting the crypto system it means will easy to track where is the money goes right?

CBDC mintable indefinitely, and doesn't mean the reserves are physical fiat. 85% in this context does not mean lost, but the reserve is questionable because of the striking difference between bank notes and bank digital money.

[Samlucky O]

People are gradually going from cash to cashless and I even like this new ways of life. It might not only be in Europe but almost all part of the world. We are in the era of technology advancement. %85 of money that doesn't exist make the financial system of government to free from inflation. Because when there is more physical cash it reduce the value of money. The only thing that help an epileptic economy is scacity of Money. So hording %85 of money means of reviving the economy. Sometimes scacity of money we will make you not to be free from armed robbers, because when you don't have cash they will have no option rather than to only steal you chain mobile device but tampering your fund because its save in your account. It will save you the time to walk around the ATM to cue-up for cash but can perform multiply transaction at a time. So %85 of money that doesn't exist is a Good thing.

[Woodie]

With the world heavily relying on technology &  already going digital with everyday that goes by, use of physical money is slowing dying out as its believed to be much safer if you are cashless, no pick pockets etcetera though new threats of going digital loom which includes easy generation of new money by a small clique of corrupt people that have government control.

Otherwise crypto is so much better when it comes to transparency and accountability as every coin is accounted for unlike fiat that as an infinite supply as money is always printed to fill a few individuals pockets.

[LoyceV]

What does this mean?

One could argue fiat money is a scam. All you have is a claim on someone else's future labor, and as we've seen in the past, central banks can reduce that claim as much as they want by diluting the money supply. Also known as "Central Banks go BRRR".
Or, to quote Henry Ford:

It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.

The daily forex trading volume in euros is larger than all euro banknotes in existence.

Henry Ford

Well, look at "actual money" then. 85% of it is completely unaccounted for.

It gets even better when you realize the "actual money" has no real value either. And that is exactly the reason why we don't have a gold standard.

It is enough for everyone to withdraw their savings on the same date from their bank accounts for the corruption of this system to be discovered.

In the Netherlands, they've been trying to make "calling for a bank run" illegal since 2010. As far as I can find, it's not illegal yet. More and more banks are now limiting cash withdrawals, and charging customers for it. It's like buying your own money.

[royalfestus]

Why do you think there are more and more limits on the use of cash, especially in Europe, and a move towards CBDCs? The fact that you have the possibility of withdrawing physical money from the bank can dismantle the ponzi scheme with bank runs. But as soon as the physical money disappears and only digits remain, they can continue to inflate the scheme as they please, as well as manipulating the use of the money with CBDCs.

That is why I think that in this forum, apart from raising awareness of the use of bitcoin with privacy, we should use cash in our daily lives as much as possible.

Cash use is restricted by the government mainly for the purpose of monitoring people's transactions, everyone else that the government has no interest in, especially in the US. Meanwhile, the same money is used by the Cartels in the USA for drug and weapon transactions. In the system, there is a lot of corruption that has been kept hidden. As the same fiat gets back to the government, some are flown to some of these countries to facilitate trade