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Topic: 2013-11-19 WashingtonPost: Bitcoin needs a central banker (Read 2184 times)
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The article is tongue-in-cheek. It immediately drew sarcastic retorts from a few in the libertarian-leaning bitcoin community.
You don't have to be a libertarian to make fun of this :
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There needs to be some kind of central institution. A bank of sorts. One with the bottomless ability to either pump extra Bitcoin into the market or suck it out, depending on what's needed to maintain stable prices.
It's the bitcoin protocol that forbids it per se.
Beside that it was a nice read.
How is the Fed supposed to manage the bitcoin supply? Buy up 30-50% of the coins that exist? Where will they get the money?? Supply and demand would set in big time and the amount of US dollars required to buy one bitcoin would skyrocket.
They can adjust the supply by changing the reserve requirement.
And that buying a large number of bitcoins to hold in reserve would be expensive is irrelevant when you can print as much money as you want. They already print more than 10 times the Bitcoin market cap every month.
How is the Fed supposed to manage the bitcoin supply? Buy up 30-50% of the coins that exist? Where will they get the money?? Supply and demand would set in big time and the amount of US dollars required to buy one bitcoin would skyrocket.
Actually, consider a dystopian future; U.S. (or Chinese) Government seizes a majority of the bitcoins and builds up significant hashing power. They accept taxes in Bitcoin, do whatever to bring them into their "strong hands". Would you keep using bitcoin? Assuming you can still send/receive as things work now.
Obviously the Washing Post is trolling the bitcoin community.
yep
Obviously the Washing Post is trolling the bitcoin community.
I hate to burst everyone's bubble ...
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
That would be the biggest fail of bitcoin so I will personally make sure that this will never happen.
I think you're all misreading what "managing" means.
The fed doesn't have to buy all the bitcoins, or process transactions to "manage" the supply. The fed will just need to decide what tools they have available. They could issue bitcoin bonds the same way they issue dollar bonds, cuz what's the fricken difference?
Just one random thought, but to say the fed is managing the bitcoin supply in 10 years shouldn't be written off as quickly as all the replies here have done.
I believe it's a longer discussion.
Or a shorter one.
That isn't Bitcoin.
Make an altcoin
The most intelligent reply I could come reading that title.
"No it doesn't".
After that , thinking of a central banking system for bitcoin I ended up burning all my neurons .
"No it doesn't".
After that , thinking of a central banking system for bitcoin I ended up burning all my neurons .
Are we forgetting that bitcoin is worldwide? Bernanke will not be running anything.
Try to collect these reserves from people like me, who don't need banks.
Good luck buying a house.
Wait a couple of years, you might be surprised.
no doubt, my money is (literally) on bitcoin outlasting the creature from Jekyll island
I hate to burst everyone's bubble ...
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
If you want to change PI in 3.15 you can make a law but it wont happen
, the same goes bitcoin and central bank.
Try to collect these reserves from people like me, who don't need banks.
Good luck buying a house.
Wait a couple of years, you might be surprised.
TL/DR version: The way to "fix" a decentralized currency is to centralize it.
Try to collect these reserves from people like me, who don't need banks.
Good luck buying a house.
I hate to burst everyone's bubble ...
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
That would be the biggest fail of bitcoin so I will personally make sure that this will never happen.
taking that $78,000 hit to assasinate bernanke are you?
[/not serious]
I hate to burst everyone's bubble ...
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
That would be the biggest fail of bitcoin so I will personally make sure that this will never happen. The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
The fed doesn't have to buy all the bitcoins, or process transactions to "manage" the supply. The fed will just need to decide what tools they have available. They could issue bitcoin bonds the same way they issue dollar bonds, cuz what's the fricken difference?
Just one random thought, but to say the fed is managing the bitcoin supply in 10 years shouldn't be written off as quickly as all the replies here have done.
I believe it's a longer discussion.
Without the 8000 tons of golds confiscated from the Americans, I doubt their bonds would have been worth so much.
The Federal Reserve can manipulate the bitcoin supply by changing the reserve requirement.
Try to collect these reserves from people like me, who don't need banks.
Without the banks, FDR is obsolete.
I hate to burst everyone's bubble ...
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
That would be the biggest fail of bitcoin so I will personally make sure that this will never happen. The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
The fed doesn't have to buy all the bitcoins, or process transactions to "manage" the supply. The fed will just need to decide what tools they have available. They could issue bitcoin bonds the same way they issue dollar bonds, cuz what's the fricken difference?
Just one random thought, but to say the fed is managing the bitcoin supply in 10 years shouldn't be written off as quickly as all the replies here have done.
I believe it's a longer discussion.
Without the 8000 tons of golds confiscated from the Americans, I doubt their bonds would have been worth so much.
The Federal Reserve can manipulate the bitcoin supply by changing the reserve requirement.
I hate to burst everyone's bubble ...
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
That would be the biggest fail of bitcoin so I will personally make sure that this will never happen.
I think you're all misreading what "managing" means.
The fed doesn't have to buy all the bitcoins, or process transactions to "manage" the supply. The fed will just need to decide what tools they have available. They could issue bitcoin bonds the same way they issue dollar bonds, cuz what's the fricken difference?
Just one random thought, but to say the fed is managing the bitcoin supply in 10 years shouldn't be written off as quickly as all the replies here have done.
I believe it's a longer discussion.
You are exactly confirming what they said up there.
Without the 8000 tons of golds confiscated from the Americans, I doubt their bonds would have been worth so much.
I hate to burst everyone's bubble ...
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
That would be the biggest fail of bitcoin so I will personally make sure that this will never happen.
I think you're all misreading what "managing" means.
The fed doesn't have to buy all the bitcoins, or process transactions to "manage" the supply. The fed will just need to decide what tools they have available. They could issue bitcoin bonds the same way they issue dollar bonds, cuz what's the fricken difference?
Just one random thought, but to say the fed is managing the bitcoin supply in 10 years shouldn't be written off as quickly as all the replies here have done.
I believe it's a longer discussion.
I hate to burst everyone's bubble ...
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
That would be the biggest fail of bitcoin so I will personally make sure that this will never happen.
yeah just cap bitcoin at $500 and distribute bits based on need rather than wanted purchases
LOL
LOL
I think articles like this are like the central banking and world financial institutions way of saying goodbye. Let's hope they don't think the goodbye options through in an Alex Jones type way.
"Somtime near the beginning of the 21st Century, mankind was united in celebration. That's when it happened. We don't know who struck first, but we know it was us that scorched the skies"
"Somtime near the beginning of the 21st Century, mankind was united in celebration. That's when it happened. We don't know who struck first, but we know it was us that scorched the skies"
I hate to burst everyone's bubble ...
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
...maybe Bitcoiners can give him [Ben Bernanke] a call [to run bitcoin].
This is probably the dumbest thing I've ever seen written about bitcoin.
This is probably the dumbest thing I've ever seen written about bitcoin.
I hate to burst everyone's bubble ...
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
Well...this assumes Bitcoin becomes centralized. And it assumes that the Fed is still around. And the Fed has destroyed the value of the dollar...
I hate to burst everyone's bubble ...
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
The Federal Reserve was created in 1913 to manage the U.S. money supply, and at this time, the U.S. was on a gold standard. Fractional reserve banking will make it possible for the Federal Reserve to manage the bitcoin money supply (with possibly limited success), but not in the way the author suggested.
I predict that the Federal Reserve will be managing the bitcoin money supply within 10 years.
I really wonder when the FED will realise that they CAN'T do that. 
that must be in the hall of fame for the worst bitcoin related titles ever 
Probably the deadline theory.
OK, OK - I know, but I couldn't resist reading this article - my first thought was it was picked up from the Onion, but, sadly, no. That title is classic!
http://www.washingtonpost.com/blogs/wonkblog/wp/2013/11/19/bitcoin-needs-a-central-banker/
To save you the time, don't bother reading it - nothing new here. Basically it's rehashing about the fluctuating value of a bitcoin and how that is terrible for a currency. The punchline?
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Fortunately, there is a possible solution for Bitcoin's volatility problem: There needs to be some kind of central institution. A bank of sorts. One with the bottomless ability to either pump extra Bitcoin into the market or suck it out, depending on what's needed to maintain stable prices. With all that power, measures need to be taken to ensure that this Bitcoin overseer is independent and credible.
Of course, you'll need somebody to run it. And if outgoing Federal Reserve Chairman Ben Bernanke doesn't get a job running a central bank for frequent flyer miles, as endorsed in this space a few weeks ago, maybe Bitcoiners can give him a call.
Of course, you'll need somebody to run it. And if outgoing Federal Reserve Chairman Ben Bernanke doesn't get a job running a central bank for frequent flyer miles, as endorsed in this space a few weeks ago, maybe Bitcoiners can give him a call.
ROTFLMAO
Either this is one of the most uninformed people about bitcoin, how it works, and the principles behind it, or someone was just trying to get an article written in 15 minutes to meet the deadline.
Wow...
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