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Bitcoin’s Decentralized Reserves
How THE HODL Will Lead To Sound Commercial Banking
In the wake of the Crypto World exchange/banking debacle, it is time to revisit two old sages and personal mentors, Edward C. Harwood and Richard Timberlake.
A generation ago E. C. Harwood described in layman's terms The Lost Art of Commercial Banking.
Just before his passing Richard Timberlake concluded his epic work Gold, The Real Bills Doctrine, and The Fed with Thomas M. Humphrey explaining how fixed gold reserves led to the deepening of The Great Depression.
My goal here is to briefly describe to the average layman how decentralized personal HODLS will develop sound commercial banking in local market communities from the bottom up rather than the top down, for it is through the non-banking laymen that sound banking will be relearned one exchange at a time.
The significance of these combined works by Harwood and Timberlake is neither a commodity standard (physical gold or digital bitcoin) nor the Real Bills Doctrine function as stand-alone sound money banking.
Self-liquidating commercial paper is sound only when the creation of…
