tag:blogger.com,1999:blog-2595455932654799850.post3833216782902753984..comments2023-11-02T10:55:07.208+01:00Comments on The Monetary Future: How Cryptocurrencies Could Upend Banks' Monetary RoleJon Matonishttp://www.blogger.com/profile/04111660030028727950noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2595455932654799850.post-67214099313995575802013-03-23T18:01:22.923+01:002013-03-23T18:01:22.923+01:00Thanks Jon its very worthwhile to discuss the mone...Thanks Jon its very worthwhile to discuss the monetary properties and possibilities of bitcoin, but I think a broader picture is also necessary.<br />1. Fractional reserve is a way of re-using the same base money many times while keeping the price stable and increasing risk. In bitcoin there is no governance, and no political mandate, thus far, to keep the price stable. So a more natural way to increase the money supply would be to let the value go up.<br />1. Monetary systems always live in a context of governance. In a context where the financial services 'industry' is rotten to the core, what it does with bitcoin will be more important, I believe, than the inherent properties of bitcoin.<br />2. Bitcoin may be limited, but the number of bitcoin clones or variants is not. Max Kaiser might suggest that bitcoin could take up 1 -10% of world trade, but so far I haven't heard him mention Ripple, or Freicoin, both of which are technically superior. The crypto currencies could soon be competing, which case there will be no need to rehypothecate scarce coins.<br />Matslatshttp://matslats.netnoreply@blogger.com