New Money or Currency??!

MM IB -> Corporate Development -> Strategic Finance

11y

SECfinance:
Are you referring to a cashless economy?

Yeah i guess so...

If you ain't gettin money dat mean you done somethin wrong. " If you have built castles in the air , your work need not be lost; that is where they should be . Now put the foundations under them." - Henry David Thoreau

brofalfa sprouts

Baboon

11y

Sounds plausible. I don't think it would contain inflation though. Even if money were virtual rather than physical, supply and demand factors would still exist, and prices would move accordingly.

11y

brofalfa sprouts:
Sounds plausible. I don't think it would contain inflation though. Even if money were virtual rather than physical, supply and demand factors would still exist, and prices would move accordingly.

Yeah thats true sir, we must take account of those factors too.

gammaovertheta

King Kong

11y

Wut. The difference between virtual and physical currency is irrelevant. What matters is that the monetary base is finite. At all points in time there is a specific amount of value stored in the monetary system. No one needs to know the exact number to trust the system, as long as people know it is finite. When that store of value in the monetary base is indistinct, everything breaks down and the currency is worthless.

We basically already have virtual currency. Hardly anyone (individuals or institutions) carries dollars. Your bank does not have a vault with your name on it where they hold dollars. You think any bank in the US has the exact amount of dollars it has in its deposits locked in the basement?

brofalfa sprouts

Baboon

11y

gammaovertheta:
Wut. The difference between virtual and physical currency is irrelevant. What matters is that the monetary base is finite. At all points in time there is a specific amount of value stored in the monetary system. No one needs to know the exact number to trust the system, as long as people know it is finite. When that store of value in the monetary base is indistinct, everything breaks down and the currency is worthless.
We basically already have virtual currency. Hardly anyone (individuals or institutions) carries dollars. Your bank does not have a vault with your name on it where they hold dollars. You think any bank in the US has the exact amount of dollars it has in its deposits locked in the basement?

^ this

11y

brofalfa sprouts:
gammaovertheta:
Wut. The difference between virtual and physical currency is irrelevant. What matters is that the monetary base is finite. At all points in time there is a specific amount of value stored in the monetary system. No one needs to know the exact number to trust the system, as long as people know it is finite. When that store of value in the monetary base is indistinct, everything breaks down and the currency is worthless.
We basically already have virtual currency. Hardly anyone (individuals or institutions) carries dollars. Your bank does not have a vault with your name on it where they hold dollars. You think any bank in the US has the exact amount of dollars it has in its deposits locked in the basement?
^ this

Agreed.

11y

brofalfa sprouts:
gammaovertheta:
Wut. The difference between virtual and physical currency is irrelevant. What matters is that the monetary base is finite. At all points in time there is a specific amount of value stored in the monetary system. No one needs to know the exact number to trust the system, as long as people know it is finite. When that store of value in the monetary base is indistinct, everything breaks down and the currency is worthless.
We basically already have virtual currency. Hardly anyone (individuals or institutions) carries dollars. Your bank does not have a vault with your name on it where they hold dollars. You think any bank in the US has the exact amount of dollars it has in its deposits locked in the basement?
^ this

Agreed.

gammaovertheta

King Kong

11y

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