Why Bitcoin will not Save Us

Bitcoin, and the new and upcoming Z-cash, will not solve the economic problems of the world. In fact, embedded within their structures are many, if not more, of the problems they claim to solve.

One should not misunderstand me. I am aware of the present currency degeneration endemic to the economies of the planet. I am also aware that many would claim the problem is our fractional reserve banking systems, which create loans — and concurrently debt from those loans — with money the bankers do not have. 

In theory, a banker with $100 in his vault can make loans up to $1000 or whatever multiple his country sets as the standard. This is allowed because in practice the depositors will not all cash out at once, and so the ruse is safe. Bankers are allowed to create cash and, more importantly, debt, out of nothing. 

Critics counter that, in our theoretical situation, $1000 of debt has been created, when only $100 exists, making ultimate repayment impossible. More loans and more debt have to be created to repay earlier loans in order to keep the system running. On a larger scale, every dollar — or whatever fiat currency is used — is backed by the

Read more ... source: TheBitcoinNews

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