pull down to refresh
Unfortunately it seems like the banks are sinking their teeth into bitcoin to expand the credit economy and the games will continue.
For how long is anyone's guess.
reply
pull down to refresh
Unfortunately it seems like the banks are sinking their teeth into bitcoin to expand the credit economy and the games will continue.
For how long is anyone's guess.
This is a critical distinction. Comparing the Monetary Base to M1 or M2 tells a story of institutional leverage vs. actual supply.
As the below charts show, the 'total money supply' (M1/M2) is multiples larger than the actual Monetary Base. This delta represents the magnitude of the credit economy, money that exists as a ledger of bank promises. Returning to a 'Bitcoin as M0' standard threatens the dominance of this credit-tier because it replaces discretionary promises with mathematical settlement.
However, as you mentioned, banks are already finding ways to maintain the credit economy by wrapping Bitcoin into various financial products. The question is whether people will choose the yield of M1 products or will they choose to keep their keys.
Monetary Base
M1
M2