Wednesday, May 28, 2014

Bitcoin Will Become an Evil Tool of Government: Rogoff Calls for Abolishment of Physical Currency

SunFan2 emails:
See interesting item in FT (a pub. of record for the establishment) by Kenneth Rogoff on getting rid of paper money for digital.  The Bitcoin crowd is (in many cases unknowingly) doing work for the state that would have taken years or never been done.  They are proving that digital is traceable, and govt. will do what they always do, some high profile prosecutions to scare the masses to not use anonymizer services, etc.  Plus even with the mixing, multi-sig, the user will never know with certainty that
their activity is truly anonymous.

Rogoff is laying the case here to co-opt it:

Paper Money Is Unfit For A World Of High Crime And Low Inflation
By Kenneth Rogoff
The Financial Times
May 28, 2014 2:44 pm
Abolishing physical currency would achieve two valuable objectives, writes Kenneth Rogoff

Read the story here.


  1. By far the most important anti-government function of bitcoin is that it's a non-inflatable currency. This means if the pool of savings escapes dollars and enters bitcoins the USG won't be able to inflate to fund its operations. You keep on harping on anonymity as if people using bitcoin to buy cocaine is the primary reason it's an incredibly powerful tool for liberty. This shows a deep misunderstanding of the importance of bitcoin. But then that's par for the course on this blog

    1. The USG can impose legal tender rules to digital payment systems/currencies. They could create FedDollar and make laws that all debts public-private must be paid in it. The masses will obediently do so.
      Interesting discussion about Bitcoin supply could have the potential to be changed. Implies that it takes a simple majority of nodes (51 %) to change the code (and by extension supply).
      bankerfrombtc: "The total supply of bitcoin can be increased with a single variable in the code. Likewise the bitcoin community wants it to be a mainstream currancy but somehow thinks that even when the current community is a tiny minority and billions of people use bitcoin that the mainstream will not apply mainstream economics to bitcoin and raise the cap.”
      permalink:"The total number of bitcoin can be increased. Right now libertarians are the majority of bitcoiners and of course that is basically unthinkable for the group of people that right now control bitcoin. The goal of bitcoin though is to spread to everyone, and in that case it seems like walmart shoppers and teen girls and bankers and whoever else will be the vast majority and the original bitcoin users will be 750,000 people trying to have their will imposed on 750,000,000 people and will likely fail to control the economy just like they have failed to control the economy we already have."
      MeTHoDx: "The change to the code would have to be accepted by 51% of the nodes, else it will fork. So no this is not likely possible."

    2. And if the "majority" votes for an inflationary currency the libertarian users will simply fork it. So much FUD in this Blog.

  2. High crime? He's referring to the Fed counterfeiting operation correct?

  3. Replies
    1. Yet you're here. Actions speak louder than words, friend.