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Harvard paper to central banks: Buy Bitcoin
- cs702 4y agoDirect links to author's research and working paper: https://sites.google.com/view/matthewferranti/research https://sites.google.com/view/matthewferranti/research https://drive.google.com/file/d/1HBbv5GWIOzzhHdmqAW2MNKHzfFmsLzrX/view https://drive.google.com/file/d/1HBbv5GWIOzzhHdmqAW2MNKHzfFm... In principle, I can understand Bitcoin's appeal as a reserve asset to central banks, especially those seeking to reduce their reliance on currencies issued by the central banks of other countries. Like gold, which historically has been used as a reserve asset, Bitcoin does not depend on the "full faith and credit" of any government. It depends only a distributed network executing a consensus algorithm.
- lupire 4y agoBitcoin depends on the full faith and credit of people who choose tonacccept Bitcoin. Who are they?
- pipodeclown 4y agoThe reason for having reserves in another currencies is for your country to be able to buy stuff with that other currency from other countries, it is therefore an enabler of international trade. You seem to be seeing reserve currency as some sort of external piggy bank/store of wealth for central banks, which it is not. The only way what you are proposing makes any sense is when every country starts accepting bitcoin as the defacto currency for payment in international trade, which would never happen. If for example Japan wants to buy stuff from America, they'll need dollars, so they buy dollars with yen on currency as markets, why would anybody first want to buy a volatile crypto to, after which they still would need to buy dollars to actually purchase the American goods? Or should we replace all national currencies with bitcoin or something? What are you proposing? This has been the recurring problem with cryptofanatics, you understand nothing of basic aconomics and just spout this kind of nonsense which after a first uninformed look seems vaguely credible and you start convincing yourself that crypto's have any real use
- jmpman 4y agoBuy Bitcoin, but Gold is better. The problem with Bitcoin is that the US could make it illegal for Bitcoin to be converted into US currency. That would drive Bitcoin prices down. The US doesn’t have as many ways to manipulate gold prices.
- thoughtstheseus 4y agoThe U.S. can also make it illegal to own gold… FDR banned gold ownership in 1933 and that lasted 40 years.
- jmpman 4y agoWould be interesting for the paper’s author to address that point. After FTX “lobbying” officials comes to light, crypto is going to turn onto a political third rail. Expect regulation and outright bans if its detrimental to Russia/Iran/China.
- deleted 4y ago[deleted]
- lupire 4y agoTitle should cite the author. "Harvard" does not have opinions like this; it's a loose affiliation of individuals.
- ElfinTrousers 4y agoMore accurate title: "One particular grad student at Harvard: Buy Bitcoin".
- rdtwo 4y agoBad idea. You are probably better off making your own side chain of the same proven tech. That way you don’t enrich existing Bitcoin holders
- tromp 4y agoOr use an existing chain that doesn't confer any advantage to early miners/adopters. Perhaps one with a pure linear emission (fixed block subsidy).