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Saifedean Ammous: The Fiat Standard & The Reversal of Civilization

The Bitcoin Matrix

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Is Bitcoin a Relic of a Decentralized System?

Fiat money is created when a debt is issued, and then money is printed to turn some of that debt into physical form. A more than 90 % of fiat money is digital money; it gets created when new debt is issued. When you take out a $1 million loan from your house, they don't take a million dollars, say, but one million dollars. They make new million dollars every time you make out the loan. Your bank is mining fia for purchase. That's what is happening with bitcoin. I think this framework was quite useful as a way of understanding how this thing works.

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