Apr 7, 2021
Matthew Mežinskis, creator of the Crypto Voices Global Monetary Base project joins the show to discuss how Bitcoin stacks up against sovereign currencies. In this episode:
- The difference between base money and broad money
- Why Bitcoin should be compared to base money and not the broad money supply
- How exchanges are serving as proto free banks – and why they might end up becoming transparent fractional reserve institutions
- How free banking actually worked
- Why unrestricted banking activity tends to equilibrate with single digit reserve ratios
- How the Scottish free banking system was stable despite fractional reserve
- How Bitcoin improves upon gold in a free banking system
- The role of Proof of Reserve in a neo free banking system
- The bankruptcy of the Ayr Bank and what it tells us about the Scottish banking system
- Why 'free banking' in the US wasn't really free
- Bitcoin passes the Swiss Franc
- Where Bitcoin stacks up relative to all the major sovereign base monies
Follow Matthew on Twitter and check out the Monetary Base project.
Sponsor notes:
Copper is transforming how institutional investors engage with digital assets by developing award-winning custody and next-gen trading infrastructure. Headquartered in London, the firm is scaling rapidly across Asia and North America to bring its suite of products to a wider pool of institutional investors. To learn more visit copper.co or reach out on Twitter, @CopperHQ
Aave is a decentralized, open source, and non-custodial protocol where users can deposits and borrow digital assets, and earn interest on those assets. Head over to aave.com to experience and learn more about DeFi.