I'm up late... my mind is whirling. I'm trying to figure out what the feds are going to to about bitcoin. I've come to the conclusion that cryto currencies are here to stay.
The situation is this. Confidence in the world's reserve currency is rapidly waning. The IMF has been calling for a dollar alternative (http://www.boounce.com/search/?g=163&s=1449&q=IMF+calls+for+dollar+alternative), gold is more expensive than platinum, and the US dept is over $16 trillion. The dollar has big problems.
I keep thinking about a point my old economics prof made about the the government being reluctant to change the physical characteristics (color) of the dollar. The dollar represents ultimate stability. Changing it might affect that. Bitcoin is such a minuscule part of the economy. The last thing the feds want to do is highlight fear and weakness in the dollar by labeling bitcoin as a threat. Additionally, all they would do is create iterative competitors. Their only recourse is to embrace and regulate it, or go after it covertly.
