Bitcoin “Could Undermine Central Banks.” Woo hoo!

7487bitcoin 530x400 Bitcoin Could Undermine Central Banks. Woo hoo!

Today on

Bloomberg, this is the lede of a
story about the rise of Bitcoin, the peer-to-peer virtual
currency: 
An increase in the value of bitcoin, the world’s largest online
currency, may fuel concerns that virtual money could undermine the
role of central banks.
Well duh. That’s sort of the point.Here’s the deal: 
Greater demand for virtual currencies could have a negative
impact on the reputation of central banks, according to a report
published by the European
Central Bank in October last year. Since the report was
released, bitcoin has risen more than 55 percent against the dollar
and use of the currency has surged.
Bitpay Inc., a bitcoin payment processing company that recently
raised $510,000 in an investment round, this month announced that
the number of companies using its services has increased almost 50
percent to more than 2,000 since November, when blog management
firm WordPress.com said it would accept the digital currency.
“I think the ECB obviously is concerned, and it’s not
reputational,” said Steve Hanke, a
professor at Johns
Hopkins University in Baltimore who helped to establish
new currency regimes in countries such as Argentina
and Bulgaria. “I think it’s
a competitive threat. Maybe virtual currencies will be so
convenient that they will pose a threat because of their ease of
use.”
Here’s me
talking Bitcoin on Stossel:And here’s an explainer from Reason TV about
Bitcoin and the end of state-controlled money:

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Bitcoin “Could Undermine Central Banks.” Woo hoo!

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