User talk:Atheros: Difference between revisions

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PeterSurda (talk | contribs)
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Additional sources and explanation
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FRB does require substitutes. It is logically impossible to conduct FRB without substitutes.
== [[wxBitcoin]] ==


With fiat dollars, the base money are the reserves the commercial banks have with the central bank, and the substitutes are the account balances that the commercial banks provide to their customers. Only the central bank can create the reserves.
No, wxBitcoin is the older wxWidgets client that used to be for download on bitcoin.org; someone probably needs to make a proper wiki page for it (it shouldn't redirect to Bitcoind) --[[User:Luke-jr|Luke-jr]] 03:28, 8 December 2011 (GMT)


With gold, banks take in gold bullion or coins, and provide either bank notes, account balances or cheques as substitutes. The banks in case of gold money cannot create more gold any more than in case of fiat money commercial banks cannot create more reserves.
== Bitcoin Addresses version 2 ==


It all boils down to substitutes, which are necessary with gold/fiat, but not necessary with Bitcoin.
Version 2 addresses is the so-called "OP_EVAL" extension that recently went live, and expected to reach widespread relay/miner support in Q1 2012. After updating the articles, I have brought attention to the problem of how user-unfriendly version 2 is, and we (developers) are now planning to do a fast switch out for version 5 (which always begins with '3') before making it user-visible. I will update the articles accordingly. --[[User:Luke-jr|Luke-jr]] 22:27, 12 December 2011 (GMT)
 
For an explanation on how FRB works, please consult Selgin's Theory of Free Banking: http://files.libertyfund.org/files/2307/Selgin_1544_EBk_v5.1.pdf
 
Please reconsider putting my edit back.
 
[[User:PeterSurda|PeterSurda]] 09:59, 7 November 2011 (GMT)
 
Let me also quote from the [http://en.wikipedia.org/wiki/Fractional-reserve_banking|Wikipedia article you reference]:
<blockquote>As most bank deposits are treated as money in their own right, fractional reserve banking increases the money supply, and banks are said to create money.</blockquote>
 
This quote explains that because the substitutes (deposits) are handled as if they were money (reserves), this increases the money supply. This phenomenon is absent with Bitcoin. A Bitcoin "deposit" is still Bitcoin, it is not a substitute, and neither are Bitbills, Casascius coins or wallets you have on your computer. The only way to do FRB is to present an alternative, a substitute, which of course is incompatible with Bitcoin, and for which there is no demand.
 
[[User:PeterSurda|PeterSurda]] 11:39, 7 November 2011 (GMT)

Latest revision as of 22:27, 12 December 2011

wxBitcoin

No, wxBitcoin is the older wxWidgets client that used to be for download on bitcoin.org; someone probably needs to make a proper wiki page for it (it shouldn't redirect to Bitcoind) --Luke-jr 03:28, 8 December 2011 (GMT)

Bitcoin Addresses version 2

Version 2 addresses is the so-called "OP_EVAL" extension that recently went live, and expected to reach widespread relay/miner support in Q1 2012. After updating the articles, I have brought attention to the problem of how user-unfriendly version 2 is, and we (developers) are now planning to do a fast switch out for version 5 (which always begins with '3') before making it user-visible. I will update the articles accordingly. --Luke-jr 22:27, 12 December 2011 (GMT)

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