Post
Topic
Board Economics
Re: Unrestricted Banking and Problem Banking
by
minor-transgression
on 08/07/2017, 21:02:03 UTC
Joke: A man walks into a grocer's shop and tries to buy a kilo of tomatoes.
The Shopkeeper: "That will cost you $2.00" The man replies "That's a ripoff.
The shop across the road has a notice in the window - tomatoes @ $1.00 per
Kilo!" "Aha," says the shopkeeper, "But he has no tomatoes. If I had no tomatoes
I could sell them for $1.00 per kilo too"
cue laughter.

The point I make here is that the economics of monopoly pricing is often ignored.
It applies to the price of money just as much as tomatoes. The reason Central
Banks have their knickers in a twist over bitcoin is that they could potentially
lose monopoly pricing of fiat money.
What they can do to gold, they can also do to bitcoin. So, bitcoin is unlikely
to go much higher, and more probably will fall in price ... until Central Banks
have monopoly pricing power over bitcoin. 

Think it can't happen ...?