Topic: Philladelphia Fed Chief: Bitcoin has yet to be tested in bad times (Read 194 times)

I wonder what he means, does this guy have enough knowledge about Bitcoin to understand in what ways the federal reserve could actually get involved.
Sometimes I think some of these reps believe they or the gov or any entity can just take over bitcoin when they want.

"When things really go bad, where do Americans turn?" he asked "Well, they're going to come back to the government. That's the history of the country."

If – and, according to Harker, when – things go wrong, the Federal Reserve and other state agencies will likely be asked to get involved anyway.

he went so far as to contend that bitcoin has yet to be tested by a real catastrophe, but that when one happens, people will be more likely to flock to government-backed money.

Harker went on to acknowledge that while citizens have put varying degrees of trust in what he called the "sovereign states" that stand behind currencies today, other currency models might be possible. This includes, he said, ways in which trust might come from another "large player," or as in the case of bitcoin, an algorithm.

But his most pertinent critique was perhaps that cryptocurrencies have not been significantly tested enough to ensure confidence.

Despite issues such as the collapse of Mt. Gox, once the bitcoin's network's largest exchange, or the ongoing bitcoin scaling debate, Harker argued that cryptocurrency has been largely insulated from "bad times."

"Everything can work in good times," he added.

This leads to the second reason Harker said he's not concerned about cryptocurrency hamstringing the Fed's monetary influence: If – and, according to Harker, when – things go wrong, the Federal Reserve and other state agencies will likely be asked to get involved anyway.

"When things really go bad, where do Americans turn?" he asked "Well, they're going to come back to the government. That's the history of the country."