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Originally Posted by Canadianman
What a well written response. Unfortunately, it has absolutely nothing to do with why allowing one party to wholly control a currency is a terrible idea and it wrong in almost every single aspect.
I can borrow against my crypto right now, and the defi market is in its infancy.
Do you think that government control over currency began sometime after your grandparents couldn't get a mortgage? Government control was the reason why mortgages were harder to get before, not the solution that solved it. Governments control their currency to control their economy. They use it to manage inflation and the borrowing power of the nation.
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Government control of currency as we know it began only when the west gave up the Gold Standard, which was a gradual process throughout the 20th century and finally abandoned in 1971 by Nixon.
The reason you can borrow against crypto is purely because your bank knows it has Government insurance, without Government backing, either implicit or implied, you would'nt be able to raise a red cent, the underpinning of our whole system of debt which is used to control the economy is the government printing money, if the Government cant print money there is no Covid relief and the last 2 year would be a tale of desperate 1930's like poverty.