Quote from: HeRetiK on December 04, 2018, 04:00:16 PM

Quote from: fxsurfer on December 04, 2018, 02:52:50 PM

Of course, but the bottom line is this. "Spreadsheet entries" in the form of Dollar or Euro are created for the borrowing of goods and services from the general population and returning them back later. On the other hand, "spreadsheet entries" in the form of Bitcoin and Crypto are created for extracting goods and services from the general population without returning them back later. And that's the difference between a legitimate business and a scam.

If you are referring to the circular flow of income -- that applies to Bitcoin as well, not just fiat currencies.

You can get paid in Bitcoin for goods and services and you can in turn use Bitcoin to pay for goods and services yourself. You can buy mining hardware using Bitcoin, pay your electricty bill using bitcoins you mined and spend the remaining bitcoins on Pizzas or whatever else you need. Granted, there's friction with the classical banking system (ie. when converting to fiat) but if you stay within a closed circuit of crypto it's rather frictionless, especially globally speaking (anyone who ever sent money abroad will know, as well as anyone who ever ran a small online business with international customers).

No, I am referring to the fact that for every dollar that is in circulation, there is a borrower who was issued a loan and used loan created dollars to get(borrow) goods and services from the general population. For that reason he is legally obligated - by the loan contract (backed by collateral), to return dollars back to the issuer (bank), and in the process have less purchasing power for goods and services. That is how he "returns" borrowed goods and services back to the general population. On the other hand, bitcoin miner used bitcoins to extract dollars, goods and services from the general population, but unlike borrower, he has no obligation to return goods and services back to the general population. Thus, unlike Dollar, Bitcoin is not debt instrument that reduces purchasing power of borrowers through the banking system. Hence, in the first instance we have: 'borrowing goods and services from the general population - returning goods and services back to the general population', which is legitimate. In the second instance we have "extracting goods and services from the general population", which is a scam.