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A comment on America's 1% Has Taken $50T From the Bottom 90%. Parent comment
You can't make more bitcoin, but if you extend credit to someone based on the bitcoin they have, that's CREATING NEW MONEY.
In that sense, bitcoin is like gold.
In the gold standard, the supply of gold was fixes, but the supply of dollars was not. Because bank's create money when they allow you to borrow.
For bitcoin to be truly deflationary, you would have to prevent all financial institutions from extending credit
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You can't make more bitcoin, but if you extend credit to someone based on the bitcoin they have, that's CREATING NEW MONEY.
In that sense, bitcoin is like gold.
In the gold standard, the supply of gold was fixes, but the supply of dollars was not. Because bank's create money when they allow you to borrow.
For bitcoin to be truly deflationary, you would have to prevent all financial institutions from extending credit