Banks, Money Creation, and What the Crypto Community Refuses to Learn from Them

Banks, Money Creation, and What the Crypto Community Refuses to Learn from Them

TL;DR: Contrary to the prevailing “fractional reserve” narrative of money creation in the crypto community, Central Banks today admit to money creation in the economy by individual banks as being more nefarious than previously propagated in mainstream economic and financial disquisition. Money is in fact empirically created ex nihilo, where loans create deposits (and bank lending is not reserve constrained). Owing to its superior monetary attributes as a store-of-value (SoV), the implication of this empirical finding further justifies Bitcoin’s role as the best alternative for the average citizen, in the 21st century, to hedge against the frequent financial and economic crises we experience worldwide triggered by our debt/credit-based economic system.

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