patrick.net

seems like Bitcoin would track with M2 money supply

Onvacation says

My bitcoin is worth $50!!!

Up to $55

I have no problem understanding a 1oz silver coin. But I never understood Bitcoin. Is it a currency?
How so?

The_Deplorable says

I have no problem understanding a 1oz silver coin. But I never understood Bitcoin. Is it a currency?
How so?

People can trade it for goods and services. However, I have seen exactly the same number of people do so as I have seen people use a 1 oz silver coin for such things. That is zero.

Misc says

People can trade it for goods and services. However, I have seen exactly the same number of people do so as I have seen people use a 1 oz silver coin for such things. That is zero.

One big difference between silver/gold and btc is you can toss someone a silver quarter but you can't easily give someone a couple thousand Satoshis. If you can't hold it you don't own it. Bitcoin is not touchable.

Bitcoin as a currency is ridiculous. Silver and gold have been money almost since the concept of money started.

Onvacation says

Silver and gold have been money almost since the concept of money started.

They ain't money now. Try buying groceries with it.

In Arizona you can supposedly pay your State income tax with gold/silver, but I ain't gonna try it. Just a way to get audited for the rest of your life.

Misc says

They ain't money now. Try buying groceries with it.

Constitutionally, gold and silver are the only real money. Digital currency is the dystopian future.

Yes:

https://www.archives.gov/founding-docs/constitution-transcript

Section. 10.
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts

What happened with that? It's still in the Constitution, so how is it allowed that states are using Things which are not gold and silver in payment of debts.

Grok:

Article I, Section 10, Clause 1 of the U.S. Constitution states: “No State shall… make any Thing but gold and silver Coin a Tender in Payment of Debts.” This prohibits states from declaring anything other than gold and silver coins as legal tender (currency that must be accepted to settle debts).Why Non-Gold/Silver Currency is Used:Federal Legal Tender: The federal government, not bound by this restriction, has authority to issue currency under the Necessary and Proper Clause (Article I, Section 8, Clause 18) and other implied powers (see below). Congress passed the Legal Tender Acts (1862–1863), making U.S. paper currency (“greenbacks”) legal tender for all debts, public and private, nationwide. States must accept this federal currency because federal law supersedes state law under the Supremacy Clause (Article VI, Clause 2).

You’re correct that the Constitution doesn’t explicitly grant Congress the power to “coin Money” beyond gold and silver or to issue paper currency. Article I, Section 8, Clause 5 grants Congress the power to “coin Money, regulate the Value thereof, and of foreign Coin,” which historically referred to minting physical coins. So, how is federal paper/digital currency constitutional, and why isn’t currency reserved to the states?

The Supreme Court case McCulloch v. Maryland (1819) established that Congress has implied powers under the Necessary and Proper Clause to enact laws supporting its enumerated powers. Creating a national currency facilitates commerce (Article I, Section 8, Clause 3) and taxation/borrowing (Clauses 1–2).

In the Legal Tender Cases (1870–1884), the Supreme Court upheld the federal government’s authority to issue paper currency as legal tender. In Knox v. Lee (1871) and Juilliard v. Greenman (1884), the Court ruled that paper money was a “necessary and proper” means to fund the government, regulate commerce, and ensure economic stability, even though not explicitly listed in Article I, Section 8.

It seems contradictory to say it is "necessary and proper" for the federal government to violate the Constitution, which clearly says that the federal government "coin money", and not "print money".