Difference between revisions of "User:Atheros"

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(Undo revision 18976 by PeterSurda (talk))
(Undo revision 18975 by PeterSurda (talk))
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FRB '''does''' require substitutes. '''It is logically impossible to conduct FRB without substitutes.'''
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Hi!
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You can see my contributions here:
  
With fiat dollars, the base money are the reserves the commercial banks have with the central bank, and the substitutes are the account balances that the commercial banks provide to their customers. Only the central bank can create the reserves.
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https://en.bitcoin.it/wiki/Special:Contributions/Atheros
 
 
With gold, banks take in gold bullion or coins, and provide either bank notes, account balances or cheques as substitutes. The banks in case of gold money cannot create more gold any more than in case of fiat money commercial banks cannot create more reserves.
 
 
 
It all boils down to substitutes, which are necessary with gold/fiat, but not necessary with Bitcoin.
 
 
 
For an explanation on how FRB works, please consult Selgin's Theory of Free Banking: http://files.libertyfund.org/files/2307/Selgin_1544_EBk_v5.1.pdf
 
 
 
Please reconsider putting my edit back.
 
 
 
[[User:PeterSurda|PeterSurda]]
 

Revision as of 10:49, 7 November 2011

Hi! You can see my contributions here:

https://en.bitcoin.it/wiki/Special:Contributions/Atheros