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Bitcoin Misinformation


               
2020 Nov 10, 10:01am   165,541 views  2,209 comments

by Onvacation   follow (4)  



In my opinion, it’s a colossal pump-and-dump scheme, the likes of which the world has never seen. In a pump-and-dump game, promoters “pump” up the price of a security creating a speculative frenzy, then “dump” some of their holdings at artificially high prices. And some cryptocurrencies are pure frauds. Ernst & Young estimates that 10 percent of the money raised for initial coin offerings has been stolen.

The losers are ill-informed buyers caught up in the spiral of greed. The result is a massive transfer of wealth from ordinary families to internet promoters. And “massive” is a massive understatement — 1,500 different cryptocurrencies now register over $300 billion of “value.”

https://www.vox.com/2018/4/24/17275202/bitcoin-scam-cryptocurrency-mining-pump-dump-fraud-ico-value

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2208   Onvacation   2025 Oct 11, 7:12am  

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.
2209   Patrick   2025 Oct 11, 3:28pm  

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".

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