Wednesday, November 20, 2013
Tuesday, November 19, 2013
Bitcoin, The Federal Reserve, The Dollar's Status As The International Reserve Currency And The Revenge Of The WinkleVoss Twins
At the end of October, I signed up on the Bitcoin website, one Bitcoin was around $200.00 then. Now, three weeks later it is worth $700.00. China is investing in Bitcoin, the Chinese Goverment is encouraging its citizens to buy Bitcoin. In April 2013, the Winklevoss twins (of Facebook fame), invested 11 million dollars in Bitcoin. That investment is now worth $55 million.
An then this happened yesterday:
The virtual currency bitcoin took a big step toward the mainstream on Monday as federal authorities signaled their willingness to accept it as a legitimate payment alternative.
A number of federal officials told a Senate hearing that such financial networks offered real benefits for the financial system even as they acknowledged that new forms of digital money had provided avenues for money laundering and illegal activity.
The Fed and politicians know that they can use Bitcoin to move vast amounts of untraceable money. So Bitcoin will serve their purpose for now...
So, It seems the me that the central bankers must be a bit worried about this new currency that is growing by leaps and bounds. I have to believe that they will soon flex their muscle and will either buy Bitcoin or find a way to shut them down.
I am no economist but I ponder the possibility that Bitcoin may one day threaten the dollar as the International Reserve Currency and what that means to the U.S. economy: Instant Greece with transfer payment recipient rioting... note to self: buy more hoppes oil.
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