Thank you for exposing banks in your video... At 0:34 the video mentions the dollars are created by giving out "loans" in this case it was $10,000. What the video failed to show is that the repayment of that loan isn't $10,000 but rather a standard interest rate will be applied on it... So when only $10,000 were "created" the "Borrower" in the real world would have to return back $12,500... The $2,500 which didn't even exist in the first place will have to be repaid. That's how economic debt increases every single day... That's how banks are a scam! You are returning something doesn't even exist yet...
Moving on to Bitcoin not having an "Economic value". Let's define first what is "Economic value"? Simply put
Economic value can be described as a measure of the benefit from a good or service to an economic agent. It is typically measured in units of currency. Another interpretation is that economic value represents the maximum amount of money an agent is willing and able to pay for a good or service.
Consider the agent buying a service from a miner... The service is moving Bitcoins from one address to another which requires
POW ( proof of work )... The currency paid for this service is FIAT. In simple words, the agent is paying for the hashing power he is technically renting... So my question to you now is how is bitcoin a fraud again?
Hi, thanks for the first non ad hominem comment.
Why would interest have to be paid monetary? Interest is just the cost lenders charge for borrowing money and this charge can be paid in a number of non-monetary ways — in goods, services, bonds, stocks, commodities... So, if the banks would stop creating new dollars and completely abandon them as means of exchange, the borrowers would simply pay the interest in some non-monetary assets.
Regarding the economic value of Bitcoin. There is none. Bitcoin is just a record, while an economic value exists outside the record - in market items, as explained in the video. The agent buying a service from a miner simply means that miner uses electricity to transfer record from one virtual address to another and to maintain this record. And this obviously doesn't make this record a market item with an economic value.
Bitcoin is not a fraud it similar or more or less the same as PayPal. It is a form of payment online that is acceptable by many countries.
Referring to the use of Bitcoin as a payment instrument, its use compared with cash, debit, credit or ACH has these significant advantages:
Faster
Less expensive
Immutable *
Public audit trail
More trustworthy
It has its own
economic value in the market place
Immunity from manipulation
* Some individuals argue that immutability is not always a benefit, because arbitration and reversal is unenforceable. This is a common misconception. Contracts, warranty rights, arbitration, or rescission can be added by agreement before a transaction, and a mechanism exists for this purpose.
But sometimes, immutability is a profound benefit—and it cannot be added to legacy payment instruments. This is because they are built upon a model of centralized, authoritarian trust. An ‘authority is in a position to alter the historical record. With massively distributed crowd-source trust built on math rather than personal reputation, history is a more reliable record of the facts.
