Fiat monetary aggregates are pure chaos. Move a bank demand deposit into a term deposit and M1 falls suddenly, even though no money has been repaid or destroyed.
But the fiat bank has merely renamed one of its liabilities!
With Bitcoin and Bitcredit, sound money, banks can neither create base money M0 nor add credit money M1. A term deposit requires an actual transfer of Bitcoin, which continues to exist and is simply held by the honest bank.
==> So, M2 rises while M1 stays unaffected and true.
Perfect money.
But the fiat bank has merely renamed one of its liabilities!
With Bitcoin and Bitcredit, sound money, banks can neither create base money M0 nor add credit money M1. A term deposit requires an actual transfer of Bitcoin, which continues to exist and is simply held by the honest bank.
==> So, M2 rises while M1 stays unaffected and true.
Perfect money.
❤️2