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ECB: "Roots of Bitcoin Can Be Found In The Austrian School Of Economics"

The ECB (European Central Bank) has produced the first official central bank study of the decentralized cryptographic money known as bitcoin, Virtual Currency Schemes. Ignoring for a moment the ECB’s condescending and derogatory use of the virtual currency phrase and scheme phrase, the study produced at least one landmark achievement.

In claiming that “The theoretical roots of Bitcoin can be found in the Austrian school of economics,” the ECB forever linked Bitcoin to the proud economic heritage of Menger, Mises, and Hayek as well as to Austrian business cycle theory. This recognition is also a direct testament to the monetary theory work of Friedrich von Hayek who inspired many with his 1976 landmark publication of Denationalisation of Money.

Bitcoin fully embodies the spirit of denationalized money as it seeks no authority for its continued existence and it recognizes no political borders for its circulation. Indeed according to the report, proponents see Bitcoin as “a good starting point to end the monopoly central banks have in the issuance of money” and “inspired by the former gold standard.”

DOWNLOAD: http://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyscheme...

http://www.forbes.com/sites/jonmatonis/2012/11/03/ecb-roots-...



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C_T_CZ's picture

About Bitcoin...

My summary: Bitcoin is virtual and therefore you don't have anything physical. But what you do have is something that is recognized by the entire bitcoin community that you can easily exchange for physical goods and services, and the whole transaction is extremely secure for all parties as well as completely outside of FRNs, gubn't inspection, gubn't taxaction, and any gubn't control whatsoever. And it's peer to peer, so it's decentralized and basically impossible for any one person or group (or government) to control.

For Technical Details, here's Wikipedia:
Bitcoin has no central issuer; instead, the peer-to-peer network regulates Bitcoins' balances, transactions and issuance according to consensus in network software. Bitcoins are issued to various nodes that verify transactions through computing power; it is established that there will be a limited and scheduled release of no more than 21 million coins, which will be fully issued by the year 2140.

Bitcoin is administered through a decentralized peer-to-peer network.[1] Cryptographic technologies and the peer-to-peer network of computing power enables users to make and verify irreversible, instant online Bitcoin payments, without an obligation to trust and use centralized banking institutions and authorities. Dispute resolution services are not made directly available. Instead it is left to the users to verify and trust the parties they are sending money to through their choice of methods.
Bitcoins are issued according to rules agreed to by the majority of the computing power within the Bitcoin network. The core rules describing the predictable issuance of Bitcoins to its verifying servers, a voluntary and competitive transaction fee system and the hard limit of no more than 21 million Bitcoins issued in total.[1]
Bitcoin does not require a central bank, state,[31] or corporate-backer.

Proclaim LIBERTY throughout all the land unto all the inhabitants thereof

Bit(ch) Coin; when turds become gold

"Bitcoin is virtual and therefore you don't have anything physical."

Yes, Virtual money backed up by nothing and created out of thin air; something that you want to be exchangeable for everything you covet. I get it now... Bit(ch) Coin is for covetous people.

Dog turds would be a more reliable form of currency. At least they actually have value.

C_T_CZ's picture

Hold'em for Bitcoins....

FYI - I make my bitcoins playing hold'em on Seals With Clubs https://sealswithclubs.eu/ since the federal gubn't dictated to me that I can't play poker online using FRNs at pokerstars.

Proclaim LIBERTY throughout all the land unto all the inhabitants thereof

Bitcoin is nice but it cannot

Bitcoin is nice but it cannot be held in your hand.

Southern Agrarian

C_T_CZ's picture

I beg to differ....

You can put your eWallet onto an encrypted USB stick, and hold that in your hand :)

Proclaim LIBERTY throughout all the land unto all the inhabitants thereof

I’m the one that posted the

I’m the one that posted the article and your absolutely correct their has been breakdowns in the cryptology of Bit-coin but more on the user side then of Bit-coin itself. Now between the 2 they resolve an issue that they both hold today that will never be able to be resolved.

(1) Transportation across state and government borders (Bit-coin resolves this Gold issue and yes there are ways to get around this issue e.g. Gold debit cards but that still doesn’t prevent confiscation or the restriction of movement)
(2) In the event of a systematic breakdown where claims will come forward and a bottom will be found (Gold as money will always reign supreme because unlike Bit-coin Gold itself sets a bottom because it is the bottom and can be claimed in the event of a breakdown of trust)

There both great and far better then what we have now but they still have their structural flaws.

I'm sorry if anyone finds this ignorant, but

I still do not trust this stuff. Period. I'll take gold/silver over bitcoin any day.

P.S.- Take notice of my user name.

I’m the one that posted the

I’m the one that posted the article and your absolutely correct their has been breakdowns in the cryptology of Bit-coin but more on the user side then of Bit-coin itself. Now between the 2 they resolve an issue that they both hold today that will never be able to be resolved.

(1) Transportation across state and government borders (Bit-coin resolves this Gold issue and yes there are ways to get around this issue e.g. Gold debit cards but that still doesn’t prevent confiscation or the restriction of movement)
(2) In the event of a systematic breakdown where claims will come forward and a bottom will be found (Gold as money will always reign supreme because unlike Bit-coin Gold itself sets a bottom because it is the bottom and can be claimed in the event of a breakdown of trust)

There both great and far better then what we have now but they still have their structural flaws.

I’m the one that posted the

I’m the one that posted the article and your absolutely correct their has been breakdowns in the cryptology of Bit-coin but more on the user side then of Bit-coin itself. Now between the 2 they resolve an issue that they both hold today that will never be able to be resolved.

(1) Transportation across state and government borders (Bit-coin resolves this Gold issue and yes there are ways to get around this issue e.g. Gold debit cards but that still doesn’t prevent confiscation or the restriction of movement)
(2) In the event of a systematic breakdown where claims will come forward and a bottom will be found (Gold as money will always reign supreme because unlike Bit-coin Gold itself sets a bottom because it is the bottom and can be claimed in the event of a breakdown of trust)

There both great and far better then what we have now but they still have their structural flaws.