I am researching some of the issues about currency, and taking one issue at a time.
Here is a false claim:
Quote:
https://steemit.com/cryptocurrency/@...itcoin-is-born
The second is even more mind blowing: American dollars are created by debt. In stark contrast, cryptocurrencies are created by work. If there was ever a scam at work in the world of currencies, creating new dollars out of debt would seem pretty high on my list. Mining Bitcoin or curating Steem? Not so much.
When a person buys a house and takes out a loan from the bank, the debt is backed by a physical asset. The house. The bank can ask the Reserve Bank for cash and use the debt/asset. The dollar cash is backed by an asset.
When a bitcoin is created, electricity is used which creates nothing but a number. That is not "work". It is the same as burning down a tree and getting nothing but smoke and carbon dioxide as proof or work.