Topic: Money is a too important matter to be managed by the State governments (Read 147 times)

I thought I read Op somewhere saying what of if banks forbid the use of...

Here, I quote "What if banks one day forbid all crytocurrencies transactions?"

I wanted to ask which bank 
And then, suggest to him maybe he needs to do an editting on that. At least, as I know now, banks only deal with fiat and I don't think they will deal with crypto in the future and if they do; they won't have the monopoly like they already have with cash.

I know that people can really well explain traditional financial cycles, and while I may be oversimplifying and leaving out information that makes the statement incorrect as a whole, I'd claim that cycles happen because everything is reactionary. As much as we'd love to have financial policy that'll just always work for all times, in reality, you don't find out something is broken until it breaks, and things don't break until they are strained. Of course influence from public authorities can affect whether necessary changes are made in a timely manner if at all, but I'd argue that no matter who is in charge of currency, we will continue to have problems.

I do believe that Bitcoin solves a few problems that fiat systems introduce and brings up some of its own. Whether we use fiat, bitcoin, or shells, I don't believe that healthy currency can exist. Its just a medium of exchange that people agree to recognize as having value. Currency is just like technology, and humans have proven over thousands of years that there will always be someone to ruin a good thing at the expense of others.

TLDR: I don't think the fiat system is evil, just flawed in some places. Some of those flaws are necessary, some not. Bitcoin shares a similar sentiment with me. Its great that its an alternative option, but people should be careful lauding it as a surefire fix.  

The State does not control the money supply, it is controlled by the bankers. This is why the world is in such a mess at the moment. We can't recover until control is returned to sovereign states. In the meantime we have Bitcoin and other cryptos to help us avoid the predations of the bankers.

Hi folks!
My brother wrote his thesis about Hayek, an economist from Austria. Took him like 5 years to write it. Last time I was discussing with him about Bitcoin, and my brother found this quote from his thesis: "I do not believe in the return of a healthy currency until we take the currency away from the hands of the State".
That's an interesting point of view. Not a point of view we often hear in the media (if at all!). But we know how many currency disasters happened since last century, and it clearly shows that contrary to popular belief, money is too important of a thing to be managed by the State!!
 
Basically Hayek was saying that economic cycles are essentially created by the monetary manipulation of public authorities, leading to catastrophic social and economic consequences. Pretty much since the 70s fiat currencies have no legit reason to exist, other than being the mandatory currencies decided by governments.
And since 2008 expansionary monetary policies have created new risks and still raise doubts about the ability of government currencies to play their role as healthy money. This quote from Hayek is from 1984 (big brother ) "I do not believe in the return of a healthy currency until we take the currency away from the hands of the State, it cannot be done with violence, but all we can do is by some indirect and cunning means, to introduce something that cannot be stopped.

I was speechless when I read this quote from 1984. This is exactly what Bitcoin is about.
Now the "non violence thing" still raises a question, I think there needs to be a revolution at some point. What if banks one day forbid all crytocurrencies transactions? I hope it will never happen. But State governments are tough motherfuckers.   that's my biggest fear. One the other hands, why wasn't it be done earlier? This question still remains unanswered for me.
Anyway, Bitcoin is an incredible revolution, hopefully one day it can become mainstream and accepted by most countries.
Any constructive opinion welcome