Re:Bitcoin’s Price Was Artificially Inflated Last Year, Rese...
by cup-of-tea on Thursday June 14, 2018 @12:25PM
(#17312819)
The paper money doesn't exist.
Who do you think is footing the bill when the government has to step in? The banks or the government? Wonderful regulation...
Re:Bitcoin’s Price Was Artificially Inflated Last Year, Rese...
by ceejayoz on Thursday June 14, 2018 @01:50PM
(#17313666)
> Who do you think is footing the bill when the government has to step in?
Banks pay insurance premiums to the FDIC.
> The paper money doesn't exist.
Who cares? A college diploma that's not printed out is still a college diploma. I don't need to be able to physically hold it in my hands, and if a hundred thousand people all asked the Bursar's Office for a copy, they wouldn't be able to do so in a timely fashion either.
That's missing the point.
The point of regulation is building a society where you don't need to do that. A bank collapse no longer means you lose your money - the FDIC insures a good-sized chunk, and the Feds come in and take over operations temporarily. Bank runs are prevented not by having enough paper money on hand, but by making people feel confident in the entire system - that your money will be there when you need it.
Fascinating read on how relatively seamless this now is: https://www.npr.org/templates/story/story.php?storyId=102384...