Dear Steemit diary - Swiss Money Referendum and the Impact on Bitcoin and crypto Economy - My analysis and thoughts

The Swiss government will be holding a Referendum on Swiss Sovereign Money on June 10 2018, after a public petition generated more than 100,000 votes, required as per Swiss law, to hold such referendums.
I am not an expert, and the issue is complex and may be a little bit complicated for people unfamiliar with the concepts and dynamics of govt. Issued tender vs bank generated money, to understand, so I will try to break it down in simple terms to the best of my understanding.

There are two kinds of money in circulation in any Economy –
Govt. Issued legal tender i.e. the coins and paper currency notes.

In addition the commercial banks are allowed to generate so called electronic money through their debt system.

For example when we take a we take a loan from a bank , as against certain TANGIBLE COLLATERALS , the bank merely creates a loan account for us and deposits the loan amount into this account.

However this is just some digits entered on an excel(or something similar) sheet on a computer. The bank does not actually back this loan with reserves. (they don’t actually deposit legal tender notes into your a/c nor physically give you, govt. Issued legal tender notes against your loan)

We have to repay these loans,with interest, based on just this DATA entered into a computer !!. Moreover, if we fail to repay the so called ‘laon’ , the coomercial banks will attach real tangible assets pegged as collateral... all on just the DATA entered in the computer of the bank !!!

A yes on this Referendum will prevent commercial banks from generating these kind of ‘money’ through debt system. In other words the Swiss National Bank (the central bank so to speak) will be the only institution with the authority to bring ‘money’ into the economy and the commercial banks can only act as intermediaries for this ‘money’. Also, the commercial banks will able to loan out only this real money as received from the govt. / SNB or from the deposits of other clients.

Thus the loans will always be genuinely backed by ‘real money.’

This is one of the paramount reason why Bitcoin and cryptocurrencies were created, accepted and has such high value today; because they cannot be artificially generated by commercial banks and their total supply is determined by Math.

So,if and if the Referendum is successful and adopted in other countries as well, will it engender a lowering of the value of Bitcoin/cryptos.. since the commercial banks will no longer be able to manipulate the amount of money in the economy?

In my opinion.. No! .. Bitcoin / cryptos will get even higher INTRINSIC value because the amount of ‘Artificially generated and circulated money’ will be weeded out from the world economy and what will remain is real money with real value. (legal tender notes or cryptos)