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1) It's compounding leverage, and becomes very sensitive to even marginal loss of faith. You can say that 20% loss of faith in fractional banking is terminal*. 20% loss of faith in Bitcoin is just 20% loss of value.

*because it would be terminal, their risk of such losses is implicitly insured by the tax payers (slaves) shavings and time.

2) The banking cartel doesn't allow your rich uncle to issue loans out of thin air. This privilege is just for the counterfeiting elite.

Habanero 2y ago

Basically it's a con game. Their most valuable asset is the confidence they can aquire. Now I see why they hate our memes so much...

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Discussion

Mark Camper 2y ago

Yup. Memes are the power of the (seemingly) powerless.

halfnull 2y ago

bitcoin and crypto are no different. the only thing with real value are tangible assets. money just exists to trade things of actual value more easily.

Mark Camper 2y ago

What about Pokémon cards?

halfnull 2y ago

that's just a solid investment obviously. joking aside, it's hard to buy a house with nothing but Pokemon cards.

Mark Camper 2y ago

My point is - value is subjective. For you, it might be only in physical things, for others it might be something else.

The function of the money has value by itself. Some things serve this function better, and then get monetary value premium, some worse. And this perception is subjective as well.

I'd just argue that I can see more money-utility in fixed amount of digital tokens that people largely hold in their 'wallets' than the levered debt instruments we're forced to custody with 3rd parties.

Azz 2y ago

The difference is the fixed supply vs one that is constantly being debased in waves of credit followed by periods of contractions.

bot 2y ago

Fixed supply currencies are deflationary, which is worse.