This brings me to Bitcoin. I think that Bitcoin could be the world's next great safe asset. At least, it certainly seems to have all the properties that are desired in a safe asset.
Importantly, it is a "simple" asset. It's simple in the sense that it's a pure fiat object--the monetary objects (called bitcoin) constitute no legal claim against anything of intrinsic value. Bitcoin is simply a record-keeping technology (and economists have known for a long time that money is memory). It pays no interest. Possession corresponds to ownership (unless counterparties are involved). The ledger has proven itself secure (not a guarantee that is can never be compromised, of course)
Importantly, it is a "simple" asset. It's simple in the sense that it's a pure fiat object--the monetary objects (called bitcoin) constitute no legal claim against anything of intrinsic value. Bitcoin is simply a record-keeping technology (and economists have known for a long time that money is memory). It pays no interest. Possession corresponds to ownership (unless counterparties are involved). The ledger has proven itself secure (not a guarantee that is can never be compromised, of course)
The fact that he refers to Bitcoin as a record-keeping technology that represents no legal claim against anything of intrinsic value shows he has a deep understanding of Bitcoin, at least from a financial standpoint - and I'm starting to realise that most central bankers have this exact same view, which is a great thing in my books.
To me, it shows that central bankers have known the potential of bitcoin from the very beginning - and could, perhaps, be more involved with the technology than they publicly let on
I think the central bankers are looking forward to the next financial crisis. They had to bail out the banks in 2008 because no alternative payment processor existed (bitcoin hadn't yet been invented) and they were worried about employers being able to pay employees, pay suppliers and so on. Now that an alternative exists, do they need to bail out banks, or do they simply switch people to a blockchain and commerce carries on regardless of the banks.
