Bitcoin and Tulips
- Through creating an algorithmic puzzle which has a known number of unknown solutions (crypto-coins are the hard-to-find solutions to these algorithmic puzzles) cryptos subject the issue of currency to a hard top limit. Bitcoin has a hard top limit issue of 22 million coins.
- Because the solutions can be found by anyone who throws sufficient computing power at the puzzle Bitcoin takes the power to create 'money' away from government, and places it back in the hands of any citizens who are prepared to make the effort.
- Physical paper and coin currency in circulation
- Bank reserves held by the central bank (the monetary base)
- Demand deposits
- Money market funds
- Savings deposits
- Large, long term deposits