Bitcoin is Venice: Difference between revisions

As mentioned, this is also true of fiat currency. But here the prevailing paradigm, which currency plays a fundamental part, makes a difference. Within the “[[degenerate fiat currency]]” [[power structure]], fiat currency operates as a lawful means of discharging debts denominated in that currency. It necessarily has that value. If this feels circular, that’s because it is: the power structure defines both question and answer. By accepting The leap of faith has been made and completed: the economy works on the strength of promises calibrated by reference to that metaphor. to the government. Bitcoin only discharges debts denominated in bitcoin.

That an artefact with no intrinsic worth can nonetheless keep one is not an impossible scenario: that is, near enough, the trick that fiat currency has pulled off. Bitcoiners do not tire of reminding us of this. Currencies generate their own momentum and when enough systematically important institutions have enough vested interest in maintaining the currency as a viable thing — if they are making enough money out of it — the currency will generally carry on. Bitcoin seems now to have this: brokers, exchanges, exchange -traded funds and their authorized participants and clearers and market makers. This is another importance of intermediation: these intermediaries all take their skim and preserving that income compels them to support the narrative.