30 Apr '14, 4am

Bitcoins effect on the money supply?: How does the adoption of bitcoin affect the money supply?More specifical...

How does the adoption of bitcoin affect the money supply? More specifically 1. Is it like currency held by the non-bank public? and therefore increases both the money suply and money base. 2. Is it like deposits? therefore only increasing the money supply 3. Is it like a bank reserve therefore only increases the money base 4. As it has aspects that make it like a monetary asset and aspects that make it like a non-monetary asset how does bitcoin adoption affect money and non-money demand? 5. How does bitcoin adoption affect the LM curve and consequently the interest rate? 6. Lastly and most importantly why does "Baby I got cha Money" sound cool ,while "Baby I got cha Bitcoin" sounds a bit geeky?

Full article: https://bitcointalk.org/index.php?topic=589939.0

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