The Chicago Fed responds to Bitcoin

[madfranks]

http://www.chicagofed.org/digital_assets/publications/chicago_fed_letter/2013/cfldecember2013_317.pdf

Here's a couple gems:


Should bitcoin become widely accepted, it is un-likely that it will remain free of government intervention, if only because the governance of the bitcoin code and network is opaque and vulnerable. That said, it represents a remarkable conceptual and technical achievement, which may well be used by existing financial institutions (which could issue their own bitcoins) or even by governments themselves.

The bitcoin code is "opaque and vulnerable"? I don't think they understand what open-source means. And LOL at them saying existing financial institutions and governments can issue their own bitcoins. HA!


Although some of the enthusiasm for bitcoin is driven by a distrust of state-issued currency, it is hard to imagine a world where the main currency is based on an extremely complex code understood by only a few and controlled by even fewer, without accountability, arbitration, or recourse.

Yes, the Federal Reserve really just said that. What chutzpah!

[Ares]

financial institutions and governments can issue their own bitcoins. HA!

I laughed my ass off when I read that. They really do not have a clue what Bitcoin is. If they truly understood it, they would be scared as it is in exact contrast to what they stand for.


it is hard to imagine a world where the main currency is based on an extremely complex code understood by only a few and controlled by even fewer, without accountability, arbitration, or recourse.

It's Open, yet it's controlled and understood by only a few... hmmm something just doesn't sound right with what he described.

That almost sounds like the Federal Reserve System itself. An extremely complex method for funding that only a few understand, control and profit from. It's a fucking joke when he mentioned accountability, arbitration, and recourse in the same sentence while the FED dumps trillions upon the open market. Yet is labeled a savior by Keynesian morons....

Bitcoin.... The free market alternative... It comes with a lot of risk, but you have full responsibility.