Examining the Crypt in Crypto
[This is a recap of a more expansive discussion of our monetary system including bitcoin. When the larger version is complete it will be posted here] Crypto currency appears to be a new development and a step beyond traditional banking as we know it. However, when you take a closer look it will be clear that this is not the case. In fact, crypto currency is in a way a full circle back to the day of gold and silver coins. In the olden days, coins were the medium of exchange, and a store of value as well as a unit of account. As the global population and economic activity grew shortages and practical issues ensued. As a result physical precious metals were replaced initially by receipts from the safekeepers, then by currency. Initially that currency was 100% backed by p recious m etals (“PM”s) then, over time less and less. The reason for this is not necessarily nefarious. If the quantity of currency is determined by the quantity of p recious m etals, the amount of gold/silver