19 upvotes, 2 direct replies (showing 2)
Congress CAN'T limit bitcoin mining or trading.
Which is *literally* the justification on why it will not function as a reserve.
Imagine if the US let random people make money. As in, literally print dollars. What exactly do you think would happen?
Federal reserves have value because the federal governments can control that value with the reserve. That's the whole point.
Comment by sebwiers at 25/11/2024 at 12:38 UTC*
1 upvotes, 0 direct replies
Literally printing cash is not how the federal reserve controls the monetary supply. Almost all money is created by banks when the issue loans.
When a bank issues a loan, they literally just create a bank account with money in it, out of thin air, balanced against the "asset" of the IOU. The Fed mostly controls the money supply by influencing how much of this banks can do.
There isn't enough paper to print the cash needed to make a dent in that effect.
Comment by [deleted] at 24/11/2024 at 22:22 UTC
-10 upvotes, 1 direct replies
The federal reserve only devalues your money. Which is to say they steal your time and labor from you. Which is why it is a poor reserve. Does someone really need to explain that you want the value of your reserve to go up and not down?? Also the Fed has no "reserves"