Author: eric at voskuil.org 2021-07-10 00:49:52
Published on: 2021-07-10T00:49:52+00:00
The discussion revolves around the misunderstanding of Bitcoiners regarding banking. Rothbard's criteria is vague, and earnings that offset fees are also "interest" in the economic context. However, the inability to distinguish money from credit and warehousing from investment leads to false conclusions regarding money and banking. Exchanges earn money from the difference between buy-price and sell-price, and the money-warehousing service they provide is simply provided for free to facilitate their primary business of earning from bid-ask spreads. One of the essential benefits of Bitcoin is that you can be your own warehouse and money transmitter. All production requires investment, which entails letting go of your money, producing something with it, and selling it to people for other money. Full reserve investment (including banking) is an oxymoron. Money warehousing may very well be provided by means other than proof-of-reserves, such as using multisig. “Pure exchanges” would be more amenable to such a scheme rather than proof-of-reserves.
Updated on: 2023-06-15T00:10:30.268618+00:00