11 votes

Federal Reserve Bank of Chicago Publishes: "Bitcoin: A Primer"

Bitcoin: A primer
by François R. Velde, senior economist

Bitcoin is a digital currency that was launched in 2009, and it has attracted much
attention recently. This article reviews the mechanics of the currency and offers some
thoughts on its characteristics.

The publication is a PDF, four pages long, which can be found here:

http://www.chicagofed.org/digital_as...er2013_317.pdf




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Diamond Dog's picture

Senate to "Study" Bitcoin.

Senate Committee on Homeland Security to Discuss Bitcoin, Nov. 18

The hearing, titled “Beyond Silk Road: Potential Risks, Threats, and Promises of Virtual Currencies,” will invite witnesses to testify about the challenges facing law enforcement and regulatory agencies, and include views from “non-governmental entities who can discuss the promises of virtual currency for the American and global economies.”

The Diamond Dog is a real cool cat. | Reporting on the world from an altitude of 420.

So... Let me get this straight: "To be, or not to be?"

Whether tis nobler... to suffer the slings & arrows of outrageous fortune... Dollars...

Or to take arms against a sea of troubles... Bitcoins...

        HAMLET

To be, or not to be: that is the question:
Whether 'tis nobler in the mind to suffer
The slings and arrows of outrageous fortune
Or to take arms against a sea of troubles
And by opposing end them?
To die: to sleep;
No more; and by a sleep to say we end
The heart-ache and the thousand natural shocks
That flesh is heir to, 'tis a consummation
Devoutly to be wish'd. To die, to sleep;
To sleep: perchance to dream: ay, there's the rub;
For in that sleep of death what dreams may come
When we have shuffled off this mortal coil
Must give us pause: there's the respect
That makes calamity of so long life;
For who would bear the whips and scorns of time

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

There are a few things about

There are a few things about Bitcoin that are important to note.

- While exchanges and legality of use can be regulated, Bitcoin itself cannot.

- If you properly secure your Bitcoins, no one under any circumstances can steal them from you.

- Bitcoin has ZERO inherent value. It is as worthless/valuable as any other currency.

- The only thing that gives Bitcoin, dollars, gold, or other mediums of exchange any value is the properties they possess that make them attractive to anyone that conducts business that needs a medium of exchange. Today most everyone uses some medium of exchange daily. The reason Bitcoin has value is because it fulfills many of the most desirable aspects of a good medium of exchange and does not have many of the negatives. The fact that no single entity; person, business, or government controls its issue is very attractive to many. This stability of process that will not be changed on arbitrary events like economic depressions, changes in administration, population change, etc is another thing that gives it value.

- Time will only tell what happens with Bitcoin. It is important to note that Bitcoin is only in year 5 of a 150 year production period.

link is redirectedd and does

link is redirectedd and does not work

Future RFID

money!!!

NOSHEEPLE

Request for Fresh New Monetary System, by Mark Twain, et al

20 Mule Team Clean. Let us request for bit a monetary system with: real money; no monolithic monopoly

Cast out the Monopoly Boyz!

Let us seek bids for real honest money to be returned to our daily business.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

I Do Not Get Bitcoin

I am a mega computer geek. I spend my days with certificates and authentication algorithms and single use tickets.

I do not get Bitcoin.

It does not pencil for me.

I think some people at the Fed got together and said "How do we fool them again for another hundred years." And they came up with Bitcoin.

I had to share this quote

Money is a medium of exchange—
something that is accepted in exchange
for a valuable good or service, not for
itself but to be exchanged later for
another good or service. For thousands
of years that medium has taken the form
of a physical object whose supply is scarce,
either naturally (precious metals) or
artificially (a token issued by a monopolist)

Ron brought the Liberty movement together, Rand is expanding the crap out of it! :)

Love it

And here's another gem -

"Although some of the enthusiasm for bitcoin is driven by a distrust of state-issued currency, it is hard to imagine a world where the main currency is based on an extremely complex code understood by only a few and controlled by even fewer, without accountability, arbitration, or recourse."

I find that like the pot calling the kettle black. What nerve!

Mostly, I love the irony they dance around by saying:

"Bitcoin is indeed free from government (so far) [a bit telling] but has turned out unlike anything Hayek imagined. It is not issued by a private enterprise operating in a competitive environment, disciplined by the market to maintain the stable value of its currency. The bitcoin network is an automaton, issuing currency at a predictable rate, perfectly incapable of providing "good money" in Hayek's sense, i.e., a currency of stable value. It has, moreover, a status of quasi-monopoly in the realm of digital currencies by virtue of its first-mover advantage, and Hayek did not address whether currency is a natural monopoly."

Like theirs is any better for us. Personally, I'd rather have a stable economy with some resultant volatility in the monetary value than visa-versa.

Page not found

Please tell me you have a mirror or copy.
I want to read it SO BAD.

Remember the Road to Roota Theory?
I think they like to foreshadow what they do.

Ron brought the Liberty movement together, Rand is expanding the crap out of it! :)

found it

http://www.chicagofed.org/digital_assets/publications/chicag...

i linked there from
http://www.coindesk.com/federal-reserve-economist-says-bitco...

Ron brought the Liberty movement together, Rand is expanding the crap out of it! :)