> Despite Libertarians' dislike of central banking, stable currency
> value derives from central banking.
Only if you can trust the central bank ... I'm not sure given the
performance of some central banks with regard to stability and the
obvious political influence/bias on the largest central banks today
(monetizing record government deficits) that one can necessarily
trust them to prevent very significant inflation going forward.
I certainly would not trust central banks in Russia, Brazil,
Argentina, Venezuela, Mexico, etc. given their track records of
the last 20 years.
73,
... Joe, W4TV
On 2014-09-19 1:36 PM, Hal Kennedy wrote:
My thought exactly. USD are backed by the USG. Bitcoin is backed by
nobody. Which is deal breaker #1 for me. #2 is there is no central
bank. Despite Libertarians' dislike of central banking, stable currency
value derives from central banking. There is, of course, no Bitcoin
central bank.
I admit to not paying close attention to Bitcoin valuation, but I think
I remember Bitcoin peaking at $1,400 USD and being down around $1 USD. I
am risk averse enough to not buy Bitcoins at $1,400 for my IRA and
401K. It just doesn't feel right.....
73,
Hal
N4GG
On 9/19/2014 12:29 PM, k2qmf@juno.com wrote:
I don't know about you but my bank
has FDIC insurance!!!
Go figure!
K2QMF
On Fri, 19 Sep 2014 15:30:45 +0000 "Wayne, W5XD" <w5xd@writelog.com>
writes:
Bitcoins sound a little bit sketchy to me...
http://www.bloomberg.com/news/2014-02-28/mt-gox-exchange-files-for-bankr
uptcy.html
<http://www.bloomberg.com/news/2014-02-28/mt-gox-exchange-files-for-bankr
uptcy.html>
Yes, it does sound sketchy. Here are some facts to ponder:
mt-gox is (was) a bitcoin exchange where "exchange" is an important
word to understand.
It was "like" a bank in the sense that bitcoin owners entrusted
their private keys to
a third party (mt-gox) who treated them in an insecure way (i.e. the
private keys were
stolen). This is analogous to taking a pile of cash to a bank, who
put it in a safe, but
the cash disappeared from the safe. The keeper of the safe declared
bankruptcy because
he didn't have the resources to pay back the depositors.
Would we allow ourselves to say cash is "sketchy" and we should not
use it? Every
individual has to make a choice, but the underlying choice is one of
trust: do
you trust (a) the technology behind the "cash" or the "digital
currency"? (b) the
keepers of the keys to lock to the safe? (c) that the "cash" is
itself not counterfeit?
or (d) the cash won't be inflated to zero value by the time you want
it back?
My understanding of bitcoin, based on my own technical expertise, is
that its technology
meets basic standards of trustworthiness. But there is no absolute
standard of
trustworthiness. Each of us has to make a relative judgement of
whether one choice is
more trustworthy ("secure") than another. In this case, the choice
is between bitcoin
and the US dollar. Each offers a very different set of technical
tradeoffs, and a very
different set of human judgement tradeoffs (that is, you have to
predict the future
behavior of people in order to make a decision about who to trust.)
Wayne, W5XD
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http://thirdpartyoffers.juno.com/TGL3141/541c5a692619a5a680b34st01vuc
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