Like Ruble, Like Shitcoin — Only Bitcoin Gets Its Value Organically Today


This is an opinion editorial by Joakim Book, a Research Fellow at the American Institute for Economic Research, and writer on all things money and financial history.

All (fiat) monies struggle with getting their users to hold the liabilities of their issuer. Put differently, only issuers with some degree of trust or credibility manage to “monetize” some part of their debts, by literally having others carry it for them for free. In the extreme, it means that the issuer gets a perpetual, non-redeemable, interest-free loan with which it can finance a portfolio of assets — the profits of which they may spend as it pleases. The most well-known instance of this is the Federal Reserve Board, and its seigniorage profits are remitted back to the U.S. Treasury.

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