By: David Van Slyck

David Van Slyck — Mon, 22 Mar 2021 18:19:25 +0000

Neither Bitcoin nor gold are the panacea that either parties claims it to be. They are similar in that the issuers are restricted in their ability to issue more currency in response to demand for currency. This helps to restrict issuance for a govt monopoly issuer. This is where the idea goes wrong.
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Far too many people assume that there has to be only one currency and that it should be issued by govt. This is closed thinking. Currency can and should be issued by multiple issuers in a competitive free market. Free, competitive issuers will be rewarded by the markets for managing their currency correctly. Inflation and deflation hurt various users and if the issuer over issues or under issues (both Bitcoin and gold force under issuance and hence deflation) then the value of the currency will suffer.
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Free market, competitive currencies will cause the destruction of fractional issuance. Fractional issuance is where the one, monopoly currency is deposited and then the bank issues loans of the same currency while at the same time keeping the deposited currency on the books. They have their currency and use it, too. In modern countries, the banks do not “own” the currency. The US govt does. When private banks reissue currency, in essence they are passing out IOUs that the federal govt is responsible for, not the bank. The govt gets around this by refusing to redeem them. They are issued but never redeemed.
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In a private market where banks issue proprietary currency (B of A issues “america’s” and Apple Bank issues “apples”) other banks cannot issue currency from other banks in the way that all banks now issue dollars. B of A cannot issue apples out of thin air and Apple Bank cannot issue americas out of thin air, with both retaining the deposited currency on their books.
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Private issuers cannot be restricted in their issuance or redemption. Both of these two hinder Bitcoin and issuance hinders gold. Gold is redeemable, butBitcoin is not.
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Libertarians need to get past the outmoded ideas of banks issuing gold certificates and get back to believing in the free markets. In this case, the free markets of currency issuance.

By: CAwalt

CAwalt — Fri, 19 Mar 2021 15:34:42 +0000

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By: cha

cha — Fri, 19 Mar 2021 15:31:05 +0000

I appreciate this comment, but it lead me to the post, “MAKING SENSE OF THE RUSSIA MONOMANIA,” which I had not read before; and that one is superb. Keep up the good work

Comments on: Cryptocurrency’s Max Keiser Vs. Gold’s Peter Schiff

By: David Van Slyck

By: CAwalt

By: cha