The monetary base represents the total amount of a currency in circulation, including physical currency and commercial banks’ reserves held at the central bank. It forms the foundation upon which the broader money supply is built. In traditional finance, central banks control the monetary base to influence economic activity. This quantity is a key indicator of a nation’s money supply.
Context
The concept of the monetary base frequently appears in crypto news when discussing the deflationary or fixed-supply characteristics of cryptocurrencies like Bitcoin, contrasting them with fiat currencies. Bitcoin’s predetermined supply schedule represents a departure from central bank control over the monetary base. This distinction is central to arguments for cryptocurrencies as a superior form of money, particularly regarding inflation concerns.
This research introduces Proof-of-Transit Timestamping, a novel cryptographic primitive enabling tamper-evident audit trails for Bitcoin across high-latency, intermittently-connected interplanetary links.
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