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RE: The Mother of all Game Changers: Central Banks will start buying if Cryptocurrency tops $500 Billion
Touché @Maxam. I understand that modern currencies are underwritten by debt however I do not see why Digital currencies are necessarily equity based . I will look up the link you provided thank you. As for precious metals being manipulated I would 100% agree particularly silver. However It is still better to have it than not because in the unlikely event that the current "Archy" folds then PM prices will float without interference. So it is a perfect hedge. They are artificially holding the price low and we are acquiring a physical commodity cheaply. I just don't wish for the time when we will profit from it.
Cryptocurrencies are "equity based" because their creation is the result of work and investment - algorithm solutions, mining equipment investment and electricity. Bank created currencies are debt based. They exist only because someone somewhere took out a loan from a bank. The money received from that loan is simultaneously the borrower's debt and the bank's asset. The borrower then pays someone else from the money borrowed, thereby doubling the amount of money in the banking system. This new deposit will be used as an accounting entry reserve which will be used to justify additional loans to create additional debt money. And the process continues ad infinitum, creating enormous bank profits out of thin air from this fractional reserve, debt based, bank money system. In our present system, all money is debt. Welcome to systematized enslavement by debt.