If the government created and issued a government-backed crypto currency to all citizens (or just low income people), and ordered all businesses that are able to accept it do so, explain in comments how that would play out? Good or bad? #cryptocurrency #coronavirus
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Replying to @ScottAdamsSays
I thought of a similar thing. The question I haven’t worked is whether it is really different from just sending cash. Is there a benefit to having currency that will be worthless later on?
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Replying to @ScottAdamsSays
Not if you want to switch it over at some stage. If I get paid for something, there will be someone holding it when the stuff stops. So you want to exchange or redeem. In other words, it is a debt obligation.
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Replying to @joshgans
Why not keep them separate forever? You are helping me think through this. Bitcoin exists and yet it can be exchanged for cash.
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Replying to @ScottAdamsSays
You could do it, but I don’t think it would work. What problem would it be solving? Debt is debt. Can’t create something out of nothing.
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Replying to @joshgans
Explain how Bitcoin added to the national debt. It didn't. Now explain how a new crypto like Bitcoin would do so. It would not.
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Replying to @ScottAdamsSays
Neither printing USD nor minting new tokens add to the debt but expand the money supply. Point is if you want to print money, just do that.
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Replying to @joshgans
A trillion dollar payment to citizens doesn't increase the national debt?
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Replying to @ScottAdamsSays
No. It causes inflation potentially but does not increase the national debt. Issuing govt bonds is how they do that. Remember when they wanted to mint a platinum coin to get around the debt ceiling. Same thing
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Press is talking about it like it is increasing debt. Didn't realize it was just a printing question. Given that, why would crypto increase inflation any more than Bitcoin did?
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Replying to @ScottAdamsSays
There is a subtle issue because the Fed doesn’t print money but instead engages in a process called quantitative easing. I don’t know enough to know whether that shows up in the account. But Congress is intending to add to the debt.
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Replying to @joshgans @ScottAdamsSays
Here is another way to think about the question. Cash is a non-interest bearing debt of the USG. The Fed conducts monetary policy by picking a target (eg, an interest rate, or bonds if QE), and then buying or selling bonds to hit the target.
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