Bitcoin, the South Sea Bubble, and Chartalism: Thursday ...

discussion: Chartalism, bitcoin advantages, conflict with state

I was reading this
http://en.wikipedia.org/wiki/Chartalism
and there are some interesting concepts here, primarily that:
Taxes aren't used to pay for government. Taxes motivate citizens to value the fiat currency, instead of to "earn" money for the state. Valid since the state can always print money, or take any goods of value by force since they have a monopoly on violence.
Considering this, that citizens are motivated to use fiat currency because they must pay taxes with said currency,
what advantages does bitcoin offer?
what do you guys think, can bitcoin coexist with taxation and the state, or is it inherently anarchistic and destined to undermine governments?
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Bitcoin, the South Sea Bubble, and Chartalism

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Bitcoin, the South Sea Bubble, and Chartalism

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Bitcoin, the South Sea Bubble, and Chartalism

Bitcoin, the South Sea Bubble, and Chartalism submitted by dominosci to Bitcoin [link] [comments]

I am reposting /u/sirbastian's takedown of Bitcoin, because I am constantly re-sharing it and terrified it will somehow get deleted

By sirbastian, originally posted here: https://www.reddit.com/Bitcoin/comments/7iyej5/bitcoin_exposes_the_massive_economic_illiteracy/dr2sntd/
While it's true that a currency needn't necessarily be "backed" by something to be an effective means of exchange, virtually everything else you've said is false, or obvious pandering to the prevailing socioeconomic attitudes prevalent in this sub.
First, let's dispel the notion that US dollars aren't backed by anything. US Dollars have an important quality that makes them useful to an individual, regardless of whether other individuals want them: they can be used to pay down US citizens' tax obligations. This is no trivial thing. Read about Chartalism for more information.
A currency, the manifestation of money, is valuable when it does a good job of transferring the aforementioned data by being: 1) easy to use and understand by everyone 2) tamperproof such that it resists corruption of the original signal 3) neglegible in overhead costs
You're listing this out like it's out of a textbook or something, but it's just 3 random points you picked out of the air that are heavily influenced by the current subject matter of Bitcoin. The average economist, when asked about money, is not going to mention that it should be "easy to understand by everyone", tamperproof, or low in transaction overhead. They're going to talk about the usual trifecta: 1) A medium of exchange 2) A store of value 3) A standard of value
Hilariously, even though you've arbitrarily chosen the metric we're using to measure the worth of a currency, Bitcoin still utterly fails to meet all 6 of these points. Let's go through them, starting with yours:
  1. Easy to use and understand by everyone - Why would you even set yourself up for this? "What is Bitcoin" "how does Bitcoin work" "How do I get a bitcoin" These are some of the most asked questions on the internet because nobody can grok Bitcoin on the first try, and even when they do, it's not clear to them how they can "buy in".
  2. Tamperproof such that it resists corruption of the original signal - While at first bluff this is true, tamperproof is really just one element of a larger desire that malicious third parties can't change the debt record in their favor. From a purely technical standpoint Bitcoin should be resistant to this, but in practice, the number of coins lost to negligent storage, Wallet exploits, etc. puts this point squarely against BTC. I am much, MUCH less concerned that my US bank account will disappear due to some technical trapdoor, or compromised because somebody hacked into the computer systems at my credit union.
  3. Negligible in overhead costs - Bitcoin is ludicrously expensive to transact in, and circumventing this via, e.g. the Lightning network, necessarily involves tradeoffs against other technical qualities that you will doubtless be counting for Bitcoin elsewhere.
  4. Medium of exchange - worthless. Nobody wants to buy pizzas with Bitcoin, because it is by and large considered some kind of investment. I love the irony that people don't want to spend their bitcoin to buy things because they're convinced that it's so incredibly useful to buy things - so much so that it will one day net them millions of... dollars? No wait, not that!
  5. It is completely untrustworthy as a store of value - putting money into Bitcoin is not safe. This entire sub has "invest responsibly" posts slathered all over it because even the most foolhardy zealots realize that that saying you should save your life's earnings in Bitcoin is a terrible idea. If I had $20 in a bank account in 2008, when I took it out today, it would only be worth 87% of what it was then. Inflation does hurt you over long periods of time, but this was a smooth, monotonic decay. It's the kind of value you can quite literally bank on decades in advance. Bitcoin has no such assurances. The value of your life savings denominated in Bitcoin changes significantly every day.
  6. A standard of value - The fact that people's biggest concern is how many dollars one can buy with their Bitcoin tells you everything you need to know. Nobody denominates values in Bitcoin - it would be completely useless. If I told you this car was worth 1 BTC, that means two different things on Monday vs. Friday. If I tell you it's worth $15000, you understand.
It protects signal integrity to a degree that no other currency type can.
This is meaningless.
This is why cryptocurrency is so valuable, and why it will continue to soar
Oh, you mean soar up and down like a tech stock after an IPO? Making it completely untrustworthy as a store of value, and unusable as a medium of exchange? Regardless, even if it was monotonically rising in value (it's not, not even close), why would this be a good thing? If you want to live in a world where all goods and services are completely denominated in Bitcoin, it doesn't matter what Bitcoin is "worth" in US dollars at any point in that cycle. The measure of Bitcoin's usefulness starts and ends with what types of things can be bought with it. It doesn't matter if a pair of shoes costs 1 BTC or .0000001 BTC if, all other things being equal, your salary and pension and taxes are measured in BTC. It's just a scale-factor. If you think the value of Bitcoin, denominated in US dollars, soaring into the stratosphere is a good thing, then you've patently revealed your true motivation, which is for the in-crowd to get rich. This is deliciously ironic given:
they betray their ignorance, their illiteracy and their complete blindness to the revolution that's happening right under their feet and which will, in time, bring down the corrupt power structures of our world to create a freer, fairer society for all of us.
And so we see what you'd really like to see happen: destroy the riches of the current superwealthy and replace them with a different group that you like more - Bitcoin early adopters.
Bitcoin is a fascinating development, and it blazed an important first trail in the modernization of money and commerce, but from a technical standpoint it is totally inadequate to serve as the currency of the internet, or the currency of the world. Transaction fees, energy usage due to mining, validation waits, Wallet protection, and exchange with existing monetary infrastructure - all of these things are lacking in fundamental, unfixable ways. The world needs something that has a lot in common with Bitcoin, but it also needs to have a lot of things that are quite different. Sitting around and telling each other that the establishment just "Doesn't get us, man" is fucking delusional. There are people that don't understand cryptocurrency, but this is not the only or even the main reason that Bitcoin falls into criticism. It is being criticized because it has real, legitimate, unsustainable, deal-breaker problems. When you write this kind of BS that 'the establishment is just trying to protect the status quo', you sound like a lunatic conspiracy theorist who things that GM knows how to make cars run on water but won't tell us because of the oil cartel. It just doesn't make any fucking sense. If Bitcoin was a digital pantheon of economic exchange that was going to usher in the modern era of banking, then you know who would be all over that shit? BANKS. It's not a cabal of evil capitalists trying to crush the revolution. It's a few uninformed people, and a bunch of people who have genuine grievances based on their understanding of monetary policy and finance. Maybe in some cases they're too stuck in their old ways of thinking, but anybody assuming that finance and banking professionals have no wisdom to impart here is gravely mistaken.
The shorthand for all of this is to ask yourself: if you could wake up tomorrow to a world that had replaced all existing monetary infrastructure, would you REALLY want to? Millions of truck drivers with unsecured wallets, policeman's pensions sitting on the blockchain, Starbucks waiting 5 minutes to confirm that your $5 coffee (+ $5 settlement fee) can be handed over? 3 transactions per second for the entire world?
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CRYPTOCURRENCY BITCOIN

CRYPTOCURRENCY BITCOIN
Bitcoin Table of contents expand: 1. What is Bitcoin? 2. Understanding Bitcoin 3. How Bitcoin Works 4. What's a Bitcoin Worth? 5. How Bitcoin Began 6. Who Invented Bitcoin? 7. Before Satoshi 8. Why Is Satoshi Anonymous? 9. The Suspects 10. Can Satoshi's Identity Be Proven? 11. Receiving Bitcoins As Payment 12. Working For Bitcoins 13. Bitcoin From Interest Payments 14. Bitcoins From Gambling 15. Investing in Bitcoins 16. Risks of Bitcoin Investing 17. Bitcoin Regulatory Risk 18. Security Risk of Bitcoins 19. Insurance Risk 20. Risk of Bitcoin Fraud 21. Market Risk 22. Bitcoin's Tax Risk What is Bitcoin?
Bitcoin is a digital currency created in January 2009. It follows the ideas set out in a white paper by the mysterious Satoshi Nakamoto, whose true identity is yet to be verified. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.
There are no physical bitcoins, only balances kept on a public ledger in the cloud, that – along with all Bitcoin transactions – is verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Despite it not being legal tender, Bitcoin charts high on popularity, and has triggered the launch of other virtual currencies collectively referred to as Altcoins.
Understanding Bitcoin Bitcoin is a type of cryptocurrency: Balances are kept using public and private "keys," which are long strings of numbers and letters linked through the mathematical encryption algorithm that was used to create them. The public key (comparable to a bank account number) serves as the address which is published to the world and to which others may send bitcoins. The private key (comparable to an ATM PIN) is meant to be a guarded secret and only used to authorize Bitcoin transmissions. Style notes: According to the official Bitcoin Foundation, the word "Bitcoin" is capitalized in the context of referring to the entity or concept, whereas "bitcoin" is written in the lower case when referring to a quantity of the currency (e.g. "I traded 20 bitcoin") or the units themselves. The plural form can be either "bitcoin" or "bitcoins."
How Bitcoin Works Bitcoin is one of the first digital currencies to use peer-to-peer technology to facilitate instant payments. The independent individuals and companies who own the governing computing power and participate in the Bitcoin network, also known as "miners," are motivated by rewards (the release of new bitcoin) and transaction fees paid in bitcoin. These miners can be thought of as the decentralized authority enforcing the credibility of the Bitcoin network. New bitcoin is being released to the miners at a fixed, but periodically declining rate, such that the total supply of bitcoins approaches 21 million. One bitcoin is divisible to eight decimal places (100 millionths of one bitcoin), and this smallest unit is referred to as a Satoshi. If necessary, and if the participating miners accept the change, Bitcoin could eventually be made divisible to even more decimal places. Bitcoin mining is the process through which bitcoins are released to come into circulation. Basically, it involves solving a computationally difficult puzzle to discover a new block, which is added to the blockchain and receiving a reward in the form of a few bitcoins. The block reward was 50 new bitcoins in 2009; it decreases every four years. As more and more bitcoins are created, the difficulty of the mining process – that is, the amount of computing power involved – increases. The mining difficulty began at 1.0 with Bitcoin's debut back in 2009; at the end of the year, it was only 1.18. As of February 2019, the mining difficulty is over 6.06 billion. Once, an ordinary desktop computer sufficed for the mining process; now, to combat the difficulty level, miners must use faster hardware like Application-Specific Integrated Circuits (ASIC), more advanced processing units like Graphic Processing Units (GPUs), etc.
What's a Bitcoin Worth? In 2017 alone, the price of Bitcoin rose from a little under $1,000 at the beginning of the year to close to $19,000, ending the year more than 1,400% higher. Bitcoin's price is also quite dependent on the size of its mining network since the larger the network is, the more difficult – and thus more costly – it is to produce new bitcoins. As a result, the price of bitcoin has to increase as its cost of production also rises. The Bitcoin mining network's aggregate power has more than tripled over the past twelve months.
How Bitcoin Began
Aug. 18, 2008: The domain name bitcoin.org is registered. Today, at least, this domain is "WhoisGuard Protected," meaning the identity of the person who registered it is not public information.
Oct. 31, 2008: Someone using the name Satoshi Nakamoto makes an announcement on The Cryptography Mailing list at metzdowd.com: "I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. The paper is available at http://www.bitcoin.org/bitcoin.pdf." This link leads to the now-famous white paper published on bitcoin.org entitled "Bitcoin: A Peer-to-Peer Electronic Cash System." This paper would become the Magna Carta for how Bitcoin operates today.
Jan. 3, 2009: The first Bitcoin block is mined, Block 0. This is also known as the "genesis block" and contains the text: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks," perhaps as proof that the block was mined on or after that date, and perhaps also as relevant political commentary.
Jan. 8, 2009: The first version of the Bitcoin software is announced on The Cryptography Mailing list.
Jan. 9, 2009: Block 1 is mined, and Bitcoin mining commences in earnest.
Who Invented Bitcoin?
No one knows. Not conclusively, at any rate. Satoshi Nakamoto is the name associated with the person or group of people who released the original Bitcoin white paper in 2008 and worked on the original Bitcoin software that was released in 2009. The Bitcoin protocol requires users to enter a birthday upon signup, and we know that an individual named Satoshi Nakamoto registered and put down April 5 as a birth date. And that's about it.
Before Satoshi
Though it is tempting to believe the media's spin that Satoshi Nakamoto is a solitary, quixotic genius who created Bitcoin out of thin air, such innovations do not happen in a vacuum. All major scientific discoveries, no matter how original-seeming, were built on previously existing research. There are precursors to Bitcoin: Adam Back’s Hashcash, invented in 1997, and subsequently Wei Dai’s b-money, Nick Szabo’s bit gold and Hal Finney’s Reusable Proof of Work. The Bitcoin white paper itself cites Hashcash and b-money, as well as various other works spanning several research fields.
Why Is Satoshi Anonymous?
There are two primary motivations for keeping Bitcoin's inventor keeping his or her or their identity secret. One is privacy. As Bitcoin has gained in popularity – becoming something of a worldwide phenomenon – Satoshi Nakamoto would likely garner a lot of attention from the media and from governments.
The other reason is safety. Looking at 2009 alone, 32,489 blocks were mined; at the then-reward rate of 50 BTC per block, the total payout in 2009 was 1,624,500 BTC, which at today’s prices is over $900 million. One may conclude that only Satoshi and perhaps a few other people were mining through 2009 and that they possess a majority of that $900 million worth of BTC. Someone in possession of that much BTC could become a target of criminals, especially since bitcoins are less like stocks and more like cash, where the private keys needed to authorize spending could be printed out and literally kept under a mattress. While it's likely the inventor of Bitcoin would take precautions to make any extortion-induced transfers traceable, remaining anonymous is a good way for Satoshi to limit exposure.
The Suspects
Numerous people have been suggested as possible Satoshi Nakamoto by major media outlets. Oct. 10, 2011, The New Yorker published an article speculating that Nakamoto might be Irish cryptography student Michael Clear or economic sociologist Vili Lehdonvirta. A day later, Fast Company suggested that Nakamoto could be a group of three people – Neal King, Vladimir Oksman and Charles Bry – who together appear on a patent related to secure communications that were filed two months before bitcoin.org was registered. A Vice article published in May 2013 added more suspects to the list, including Gavin Andresen, the Bitcoin project’s lead developer; Jed McCaleb, co-founder of now-defunct Bitcoin exchange Mt. Gox; and famed Japanese mathematician Shinichi Mochizuki.
In December 2013, Techcrunch published an interview with researcher Skye Grey who claimed textual analysis of published writings shows a link between Satoshi and bit-gold creator Nick Szabo. And perhaps most famously, in March 2014, Newsweek ran a cover article claiming that Satoshi is actually an individual named Satoshi Nakamoto – a 64-year-old Japanese-American engineer living in California. The list of suspects is long, and all the individuals deny being Satoshi.
Can Satoshi's Identity Be Proven?
It would seem even early collaborators on the project don’t have verifiable proof of Satoshi’s identity. To reveal conclusively who Satoshi Nakamoto is, a definitive link would need to be made between his/her activity with Bitcoin and his/her identity. That could come in the form of linking the party behind the domain registration of bitcoin.org, email and forum accounts used by Satoshi Nakamoto, or ownership of some portion of the earliest mined bitcoins. Even though the bitcoins Satoshi likely possesses are traceable on the blockchain, it seems he/she has yet to cash them out in a way that reveals his/her identity. If Satoshi were to move his/her bitcoins to an exchange today, this might attract attention, but it seems unlikely that a well-funded and successful exchange would betray a customer's privacy.
Receiving Bitcoins As Payment
Bitcoins can be accepted as a means of payment for products sold or services provided. If you have a brick and mortar store, just display a sign saying “Bitcoin Accepted Here” and many of your customers may well take you up on it; the transactions can be handled with the requisite hardware terminal or wallet address through QR codes and touch screen apps. An online business can easily accept bitcoins by just adding this payment option to the others it offers, like credit cards, PayPal, etc. Online payments will require a Bitcoin merchant tool (an external processor like Coinbase or BitPay).
Working For Bitcoins
Those who are self-employed can get paid for a job in bitcoins. There are several websites/job boards which are dedicated to the digital currency:
Work For Bitcoin brings together work seekers and prospective employers through its websiteCoinality features jobs – freelance, part-time and full-time – that offer payment in bitcoins, as well as Dogecoin and LitecoinJobs4Bitcoins, part of reddit.comBitGigs
Bitcoin From Interest Payments
Another interesting way (literally) to earn bitcoins is by lending them out and being repaid in the currency. Lending can take three forms – direct lending to someone you know; through a website which facilitates peer-to-peer transactions, pairing borrowers and lenders; or depositing bitcoins in a virtual bank that offers a certain interest rate for Bitcoin accounts. Some such sites are Bitbond, BitLendingClub, and BTCjam. Obviously, you should do due diligence on any third-party site.
Bitcoins From Gambling
It’s possible to play at casinos that cater to Bitcoin aficionados, with options like online lotteries, jackpots, spread betting, and other games. Of course, the pros and cons and risks that apply to any sort of gambling and betting endeavors are in force here too.
Investing in Bitcoins
There are many Bitcoin supporters who believe that digital currency is the future. Those who endorse it are of the view that it facilitates a much faster, no-fee payment system for transactions across the globe. Although it is not itself any backed by any government or central bank, bitcoin can be exchanged for traditional currencies; in fact, its exchange rate against the dollar attracts potential investors and traders interested in currency plays. Indeed, one of the primary reasons for the growth of digital currencies like Bitcoin is that they can act as an alternative to national fiat money and traditional commodities like gold.
In March 2014, the IRS stated that all virtual currencies, including bitcoins, would be taxed as property rather than currency. Gains or losses from bitcoins held as capital will be realized as capital gains or losses, while bitcoins held as inventory will incur ordinary gains or losses.
Like any other asset, the principle of buying low and selling high applies to bitcoins. The most popular way of amassing the currency is through buying on a Bitcoin exchange, but there are many other ways to earn and own bitcoins. Here are a few options which Bitcoin enthusiasts can explore.
Risks of Bitcoin Investing
Though Bitcoin was not designed as a normal equity investment (no shares have been issued), some speculative investors were drawn to the digital money after it appreciated rapidly in May 2011 and again in November 2013. Thus, many people purchase bitcoin for its investment value rather than as a medium of exchange.
However, their lack of guaranteed value and digital nature means the purchase and use of bitcoins carries several inherent risks. Many investor alerts have been issued by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Consumer Financial Protection Bureau (CFPB), and other agencies.
The concept of a virtual currency is still novel and, compared to traditional investments, Bitcoin doesn't have much of a long-term track record or history of credibility to back it. With their increasing use, bitcoins are becoming less experimental every day, of course; still, after eight years, they (like all digital currencies) remain in a development phase, still evolving. "It is pretty much the highest-risk, highest-return investment that you can possibly make,” says Barry Silbert, CEO of Digital Currency Group, which builds and invests in Bitcoin and blockchain companies.
Bitcoin Regulatory Risk
Investing money into Bitcoin in any of its many guises is not for the risk-averse. Bitcoins are a rival to government currency and may be used for black market transactions, money laundering, illegal activities or tax evasion. As a result, governments may seek to regulate, restrict or ban the use and sale of bitcoins, and some already have. Others are coming up with various rules. For example, in 2015, the New York State Department of Financial Services finalized regulations that would require companies dealing with the buy, sell, transfer or storage of bitcoins to record the identity of customers, have a compliance officer and maintain capital reserves. The transactions worth $10,000 or more will have to be recorded and reported.
Although more agencies will follow suit, issuing rules and guidelines, the lack of uniform regulations about bitcoins (and other virtual currency) raises questions over their longevity, liquidity, and universality.
Security Risk of Bitcoins
Bitcoin exchanges are entirely digital and, as with any virtual system, are at risk from hackers, malware and operational glitches. If a thief gains access to a Bitcoin owner's computer hard drive and steals his private encryption key, he could transfer the stolen Bitcoins to another account. (Users can prevent this only if bitcoins are stored on a computer which is not connected to the internet, or else by choosing to use a paper wallet – printing out the Bitcoin private keys and addresses, and not keeping them on a computer at all.) Hackers can also target Bitcoin exchanges, gaining access to thousands of accounts and digital wallets where bitcoins are stored. One especially notorious hacking incident took place in 2014, when Mt. Gox, a Bitcoin exchange in Japan, was forced to close down after millions of dollars worth of bitcoins were stolen.
This is particularly problematic once you remember that all Bitcoin transactions are permanent and irreversible. It's like dealing with cash: Any transaction carried out with bitcoins can only be reversed if the person who has received them refunds them. There is no third party or a payment processor, as in the case of a debit or credit card – hence, no source of protection or appeal if there is a problem.
Insurance Risk
Some investments are insured through the Securities Investor Protection Corporation. Normal bank accounts are insured through the Federal Deposit Insurance Corporation (FDIC) up to a certain amount depending on the jurisdiction. Bitcoin exchanges and Bitcoin accounts are not insured by any type of federal or government program.
Risk of Bitcoin Fraud
While Bitcoin uses private key encryption to verify owners and register transactions, fraudsters and scammers may attempt to sell false bitcoins. For instance, in July 2013, the SEC brought legal action against an operator of a Bitcoin-related Ponzi scheme.
Market Risk
Like with any investment, Bitcoin values can fluctuate. Indeed, the value of the currency has seen wild swings in price over its short existence. Subject to high volume buying and selling on exchanges, it has a high sensitivity to “news." According to the CFPB, the price of bitcoins fell by 61% in a single day in 2013, while the one-day price drop in 2014 has been as big as 80%.
If fewer people begin to accept Bitcoin as a currency, these digital units may lose value and could become worthless. There is already plenty of competition, and though Bitcoin has a huge lead over the other 100-odd digital currencies that have sprung up, thanks to its brand recognition and venture capital money, a technological break-through in the form of a better virtual coin is always a threat.
Bitcoin's Tax Risk
As bitcoin is ineligible to be included in any tax-advantaged retirement accounts, there are no good, legal options to shield investments from taxation.
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Related Terms
Satoshi
The satoshi is the smallest unit of the bitcoin cryptocurrency. It is named after Satoshi Nakamoto, the creator of the protocol used in block chains and the bitcoin cryptocurrency.
Chartalism Chartalism is a non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Satoshi Nakamoto The name used by the unknown creator of the protocol used in the bitcoin cryptocurrency. Satoshi Nakamoto is closely-associated with blockchain technology.
Bitcoin Mining, Explained Breaking down everything you need to know about Bitcoin Mining, from Blockchain and Block Rewards to Proof-of-Work and Mining Pools.
Understanding Bitcoin Unlimited Bitcoin Unlimited is a proposed upgrade to Bitcoin Core that allows larger block sizes. The upgrade is designed to improve transaction speed through scale.
Blockchain Explained
A guide to help you understand what blockchain is and how it can be used by industries. You've probably encountered a definition like this: “blockchain is a distributed, decentralized, public ledger." But blockchain is easier to understand than it sounds.
Top 6 Books to Learn About Bitcoin About UsAdvertiseContactPrivacy PolicyTerms of UseCareers Investopedia is part of the Dotdash publishing family.The Balance Lifewire TripSavvy The Spruceand more
By Satoshi Nakamoto
Read it once, go read other crypto stuff, read it again… keep doing this until the whole document makes sense. It’ll take a while, but you’ll get there. This is the original whitepaper introducing and explaining Bitcoin, and there’s really nothing better out there to understand on the subject.
“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party

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Chartalism: Competing Currencies Question

So, according to the Chartalist theory of money " that fiat currency has value in exchange because of sovereign power to levy taxes on economic activity payable in the currency they issue." https://en.wikipedia.org/wiki/Chartalism
Thus, according to this theory, a monetarily-sovereign nation's currency will still have some value even if there are alternative currencies for exchange (e.g. Gold, bitcoin, foreign currency, etc.) that become popular. Of course, one's currency may lose "value" but so long as the capacity to levy taxes in that currency is there, then there is some value in said-currency. So, these alternative crypto-currencies, for instance, are not real competitors to the national currency, so long as taxes our levied in the form of the national currency, right? However, doesn't this also mean that if a nation would accept tax payments in alternative currencies that they are not in control of, these alternative currencies could be a threat that leads to the erosion of the national currency?
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The Disturbing Rise of Modern Monetary Theory

This is the best tl;dr I could make, original reduced by 93%. (I'm a bot)
It could be that with the election of Alexandra Ocasio-Cortez to congress, MMT's star will rise with hers as she is reportedly an adherent and possibly views MMT as a means to fund her Green New Deal.
As we see below, MMT has been around for some time, having come out of the Chartalism school in the first half of the 1900's and was made into MMT in the early 90's by Warren Mosler, apparently after a "Long steam" with Donny Rumsfeld, who then referred him to Art Laffer.
To the casual onlooker, MMT may sound a lot like standard-issue Keynesianism, the idea that the Government can and should run deficits to smooth out the business cycle.
At its core, Modern Monetary Theory is an argument that would be wonderfully familiar to every sovereign since the invention of debt.
MMT says debt can expand perpetually and inflation will not occur provided it doesn't expand faster than the value in the private economy and any excess liquidity is drained off via taxation.
Under MMT there is no more pretence that the currency has any intrinsic value - it's an economic scorecard and nothing more.
Summary Source | FAQ | Feedback | Top keywords: MMT#1 debt#2 currency#3 Government#4 more#5
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NOTICE: This thread is for discussing the submission topic. Please do not discuss the concept of the autotldr bot here.
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Marshall Auerback: Understand the Money Government Creates Ep. 444: GND Plus MMT Equals a Marriage Made in Hell Modern Money Team MMT Team Building Bernard Lietaer: Modern Monetary Theory is right Bernard Lietaer, The Paradigm of Money

Virtuelle Währungen wie Bitcoin werden auf einem freien und offenen Markt ausgegeben, haben keine Verbindung zu einer Regierung und dennoch einen Wert zwischen der wachsenden Anzahl von Menschen, die mit ihnen handeln. Die Kryptowährungsbewegung steht im Gegensatz zu nationalen und Bankgeldsystemen sowie zum Konzept des Kreditgeldes. Die zunehmende Popularität lässt darauf schließen, dass ... Chartalism is an economic theory initiated by the German Georg Friedrich Knapp. Georg Friedrich Knapp (1842-1926) studied a rare combination of physics, chemistry and economics. His father was a chemist as well as his wife’s brother, the famous Justus von Liebig. As a result of his scientific background Knapp had good mathematical skills. He was a professor of both economics and statistics ... use the following search parameters to narrow your results: subreddit:subreddit find submissions in "subreddit" author:username find submissions by "username" site:example.com find submissions from "example.com" Read about Chartalism for more information. A currency, the manifestation of money, is valuable when it does a good job of transferring the aforementioned data by being: easy to use and understand by everyone. tamperproof such that it resists corruption of the original signal . neglegible in overhead costs. You're listing this out like it's out of a textbook or something, but it's just 3 ... Bitcoin ist eine digitale Währung, die im Januar 2009 gegründet wurde. Sie folgt den Ideen eines White Papers des mysteriösen Satoshi Nakamoto, dessen wahre Identität noch verifiziert werden muss. mehr Definition von Hartgeld Hartgeld ist ein fortlaufender Finanzierungsstrom im Vergleich zu einer einmaligen Zuschusszahlung und kann sich auch auf eine Währung beziehen, die durch einen ...

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Marshall Auerback: Understand the Money Government Creates

Bitconnect DO NOT MISS This Life Changing Opportunity! Bitcoin Investment https://www.youtube.com/watch?v=k-Ze1Y5gHaE Hashflare Most Trusted Cloud Mining - B... Live Bitcoin Trading With Trading Robot DeriBot on Deribit DeriBot Backup 310 watching Live now Bernard Lietaer on Modern Monetary Theory (MMT) AKA Chartalism - Duration: 1:31. "Academically [MMT] has not been challenged. And from what I study on it, they are right!" The New Paradigm of Money: Monetary blind spots and structural solutions Bernard A. Lietaer, Research ... Bernard Lietaer, author of The Future of Money, is an international expert in the design and implementation of currency systems. http://www.lietaer.com/ Key ... The title of this panel is a variation on John Dewey’s 1927 book “The Public and Its Problems” in order to direct attention to the political turmoil that is connected to the logic of ...

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