Saturday, June 21, 2014

Bitcoin as US currency warfare

Still noodling around with bitcoin and learning more about the phenomenon. One of the puzzlers that a number of people are scratching their head about is the cautious support that bitcoin seems to be getting in the US. Why would an inherently deflationary currency attract support from a government that seems so strongly committed to inflating its currency into a creeping devaluation. 

The answer came in an hour long talk with Andreas Antonopoulos that was up on youtube. He forthrightly predicted that bitcoin was eroding all currencies but that the dollar would be the last to fall. In the 'devil take the hindmost' currency world we inhabit, that makes bitcoin an ally of the Fed for now. 

Things do seem to be playing out that way as China subsequently made moves against bitcoin even as it also made moves to work with Russia to supplant the dollar.