Friday, October 16, 2015

Ben Bernanke on Bitcoin

While in San Francisco at  the Commonwealth Club of California earlier this week, former Federal Reserve chairman Ben Bernanke was asked about Bitcoin and he made a brief comment.

He said it was technologically very sophisticated and that the technology will be very useful. However, he said he did not see it becoming a major means of exchange.

Then he added, "It will run into trouble because its aim is to be anonymous and it will cause a lot of government attention."



  1. Bitcoin isn’t going anywhere.

    Bitcoin will sustain itself as long as there is a demand for anonymous currency, and that demand is now heavily facilitated by the need for black market commerce, aka the new “dark net” market. Dark net markets have been popping up at a tremendous rate since the collapse of the first dark net market two years ago, the Silk Road. With as expansive as the shipping industry is throughout the US and the world, patrons of dark net markets can buy anything from illegal recreational drugs to legitimate prescription-only medication that is only available upon a doctor’s visit, and have it shipped to their home address. Yes, there’s a risk, but is it worth risking not getting a needed medication for yourself or a loved one? Think about this – need a prescription-only asthma inhaler, only available after a $100-200 doctor’s visit? These items are available on the Dark net markets for a fraction of the price. With healthcare costs in the US continuing to rise and the Feds continuing to fight marijuana (and other illicit drug) users, dark net markets will thrive, and in turn, Bitcoin.

  2. I would say this is telling to his position on Gold as well...