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.
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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.

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