Yes, #bitcoin has a central bank

The bitcoin concept has been blowing up social media over the past couple of days.  This online currency created out of nothing reminds me of how the Federal Reserve manages the nation’s monetary policy, by making an accounting entry and creating cash.  It just seems like this is the wrong direction to go, cyberspace or not.

I won’t harp on it much more, but in a capitalist nation where a significant number of its citizens have little in real capital to leverage for a living, this cyberspace disturbance can be a distraction from real economic issues.

Lastly, let’s not fool ourselves.  Commenters describe the economic ecosystem that bitcoin moves through as having no central bank.  Bullshit, I say.  Whoever is collecting the cash for each bitcoin issued is the central bank.  They just haven’t figured out how to organize it yet …

About Alton Drew

Alton Drew brings a straight forward and insightful brand of political market intelligence. Alton Drew graduated from the Florida State University with a Bachelor of Science in economics and political science (1984); a Master of Public Administration (1993); and a Juris Doctor (1999). You can also follow Alton Drew on Twitter @altondrew.
This entry was posted in bitcoin, e-commerce, Internet and tagged . Bookmark the permalink.

2 Responses to Yes, #bitcoin has a central bank

  1. Bit says:

    “Whoever is collecting the cash for each bitcoin issued…”
    Sir you should look into bitcoin a bit more before you bash something you clearly don’t understand.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s