Quote from: cAPSLOCK on December 07, 2018, 02:39:35 PM

Quote from: pönde on December 06, 2018, 10:31:59 PM

I am not sure what mean "paper gold work"? But I know it works for the TPTB but not for the people.

Quote from: cAPSLOCK on December 06, 2018, 09:56:54 PM

If you HOLD YOUR PRIVATE KEYS. They can't make fake bitcoin out of them.

Thats hard for people to understand, until they want to buy something with the paper gold. Blockchain says no. So thats why we need real world BTC shopping.

Do those paper bitcoin all ready exitst? And if so, what is the effect on BTC price? And what about the BTC futures?

The way paper crypto would work is like this:

1. The institution holds 1 XMR
2. The institution gives you some sort of promise of ownership of the capital it is holding. This 1 XMR belongs to pönde.
3. But they still hold the keys.
4. They then use this same 1 XMR for further financial purposes, for example selling it short, or giving ANOTHER entity claims on it as well as you.

All of the above works fine until there is demand from multiple owners of the asset at the same time.

This was a huge part of the 2009 financial crisis. It is a form of fractional reserve. And poof Lehman Brothers is just a page in history...

And YES! Those "paper BTC" *do* already exist. Most, if not every exchange that holds the private keys for user's accounts is doing exactly this. In the end (because of theft) it was also the way GOX fell.

The ultimate remedy is unique to bitcoin as it is a digital bearer asset. All users have to do is either to hold their own private keys, take "physical delivery" of any contracts they purchase, or at the very least only do business with entities that keep BTC in segregated addresses for which the user KNOWS the public key, or address.

This is where it get's interesting, because never before has there been a financial instrument that has the bearer asset properties of cash, but all the advantages of digital money on top.

The WORLD is not anymore the way it used to be, mm mm mmm, Nuh Nuh NO!

Great post. - It clearly shows a system that is fundamentally flawed in its design. Allowing this kind of fractional reserve (banking) system is a downward spiral, something that can only be sustained as long as enough sheeple are either not knowing about the game that is being played or are hoping for someone else that will come after them and play along.
Deploying a similar system for Bitcoin and/or other cryptocurrencies such as Monero is just insanely stupid imho - it counterfeits most of their initial ideas that led to the creation of Bitcoin.