Bitcoin Can Save Our Ghost Money Financial System

Weve interviewed him two times for the Bitcoin Magazine podcast “Fed Watch”– you can listen here and here, where we talked about some of these topics.In this post, I will define the principle of ghost money, go over the eurodollar and bitcoin as ghost money, take a look at currency scarcities and their function in financial development, and lastly, location bitcoin in its location among currencies.What Is Ghost Money?Ghost cash is an abstracted ideal currency system, utilized mainly as an unit of account and medium of exchange, however whose store-of-value function is a derivative of a base cash. Other terms for ghost cash include: political money, quasi-money, imaginary money, moneta numeraria or money of account.To lots of economic historians the most famous age of ghost money is the Bank of Amsterdam beginning in the early 17th century. It would also make the existing incarnation of the eurodollar simply the end-phase of another ghost money experiment, all set to be changed by a new cash, the very same way the British gold requirement replaced the international silver standard.Either way you take it, that the current eurodollar is a new money due to the fact that it is a pure credit-based money, or that it is the ghost of a ghost still connected emotionally to a gold standard, both these positions support one conclusion.

Weve interviewed him twice for the Bitcoin Magazine podcast “Fed Watch”– you can listen here and here, where we talked about some of these topics.In this post, I will specify the principle of ghost cash, talk about the eurodollar and bitcoin as ghost money, examine currency scarcities and their function in monetary development, and finally, place bitcoin in its place among currencies.What Is Ghost Money?Ghost cash is an abstracted perfect currency system, utilized primarily as an unit of account and medium of exchange, however whose store-of-value function is a derivative of a base cash. Other terms for ghost money consist of: political money, quasi-money, imaginary cash, moneta numeraria or money of account.To lots of economic historians the most famous age of ghost money is the Bank of Amsterdam beginning in the early 17th century. That is what hes doing when he theorizes that since bitcoin is supplying new financial liquidity in a time of eurodollar scarcity, that bitcoin is ghost money.Currency lacks can be resolved by introducing an entire brand-new money, and as the old cash suffers from scarcity, the new cash, with a brand new store-of-value anchor, can end up being the primary unit-of-account. If bitcoin truly were just a ghost cash derivative of the eurodollar, it would not set greater highs and higher lows each cycle.The reason bitcoin can set those new highs each time is because bitcoin is a brand-new money, and is gradually becoming entrenched next to the eurodollar not as a ghost money of it.Turning back to the Great Bullion Famine, it was followed by the surge of ghost cash, however what followed that growth is even more interesting. It would likewise make the present version of the eurodollar simply the end-phase of another ghost cash experiment, all set to be changed by a brand-new money, the exact same way the British gold standard replaced the international silver standard.Either method you take it, that the existing eurodollar is a brand-new cash since it is a pure credit-based money, or that it is the ghost of a ghost still linked emotionally to a gold requirement, both these positions support one conclusion.