I don't understand:
- If the wealth of a nation rises (because of its citizen's labour) shall there be a proportional increase in the amount of money (fiat currency) going around?
- If I ignore legality and focus only on ethics/morality, is the government printing extra currency and a forger printing paper money, equally immoral vis-a-vis stealing real stuff from producers?
- Why do some Americans (like Elon/Vivek) worry about their ever-increasing national debt? Is it just their morality? Or is there any repercussion they may face in their future? With the dollar being the world's reserve currency (due to military threats or otherwise), the US can simply print cash and steal from all the nations in the world.
- What was great about having a gold standard for money? After all, gold's worth is also an assumption of humanity. Gold, by itself, has very little use in everyday life. Gold is not rice.
- When the government prints/creates money, how does it send it into circulation? Paying government employee's salary? Repaying debt to creditors with the newly printed-out-of-thin-air money?
- Need confirmation: Bitcoin-mining is a different phenomenon from Bitcoin-usage. If I plan to use Bitcoin for buying/selling stuffs, I need not bother about knowing the details of Bitcoin-mining (as long as mining restrictions remain in place to maintain currency-scarcity).
- Need confirmation: In medieval times, Cowrie shells were effective currency in Bengal even though cowries were possibly abundant, lying on seashores, in Maldives. In Bengal, cowries were still effective because it took significant effort for any Bengali to gather a ship, sail to the Maldives and get the cowries back. This difficulty was necessary and created the condition for currency-scarcity. The increasing difficulty of crypto-mining is designed to mimic the difficulty similar to that involved in "sailing-from-Bengal-to-Maldives-for-cowries".
I understand:
- Destroying cash currency (by burning, or tearing it down) is a help to the government (the currency issuer). Satyanveshi Byomkesh Bakshi burnt bundles of cash in Aadim Ripu. Why does the government punish currency-destroyers then? Possibly in mock anger. Nobody in their right mind will destroy money(instead of buying stuff). And if people do destroy dome currency-notes, the government treasury should be very happy about it as they got rid of liability.
- Underlying trust in "currency issuers capability to deliver stuffs" against currency matters. Mr Jana (Jana-da in Bengali sambodhan) ran a stationery supply shop during my engineering years at Shibpur Bengal Engineering College. If Jana-da did not have change, he used to issue a handwritten paper piece with his signature/stamp and the amount outstanding written in his handwriting. Jana-da's notes were honoured widely because you could always get notebooks, pens, and stationery from his store which we students always needed. Students sometimes settled their transactions among themselves using Jana-da-notes. If I had issued handwritten notes, nobody would have bothered to accept it. I had no credibility in delivering 'stuffs' as opposed to Jana-da.
- Printing extra currency notes by the government amounts to stealing real stuff/wealth from the owners. Stuff/wealth owners are coerced (through legal force) into honouring the printed currency.
- Curiosity about something as important as money.
- To understand the concepts about cryptocurrency. My gut-feel is that crypto-currency is more 'ethical' than fiat currency issued by the government. But gut-feel is all I have, no deeper knowledge. I understand a little about the technology (concepts of distributed-ledger, proof-of-work, etc). But I understand almost nothing about the philosophy of money.
- I have a gut feel that the governments around the world are lying to their citizens. They ban cryptocurrencies under the pretext of criminal usage of these cryptocurrencies. But that is just a pretext. The real reason is that by allowing cryptocurrency they will forego their power to hide inefficiencies (and/or corruption) by printing money out of thin air. They do not want to let go of this unholy power.