Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
toknormal
on 14/06/2018, 14:17:39 UTC
⭐ Merited by Tyr808 (1)
How is producing 10 times the amount of money you have...not printing money out of thin air?

If not out of thin air, where does the new money come from?

It is underwritten by 3rd party debt - either sovereign, corporate or person debt.

A bank cannot simply create money "out of thin air".. They need to get an economically productive entity to underwrite it / "back" it with a promise of future productivity.