[quote=“whywescalp, post:4666, topic:35612, full:true”]
If Bitcoin or any other crypto currency takes over or creates the foundation of alternate global currency then how will USA keep printing money to float free debt for it’s balance sheets? [/quote]
I think the answer to that question might lie in a “central bank cryptocurrency”, not yet issued, but being studied by the U.S. Federal Reserve System. The concept is a cryptodollar circulating alongside U.S. cash and central bank reserves. The cryptodollar would be pegged to the U.S. dollar, eliminating bitcoin-style volatility.
In some respects, the proposed cryptodollar would function just like bitcoin, notably in its distributed ledger (blockchain) accounting basis. However, it would not entail third-party anonymity, which is a key feature of bitcoin.
The little that I understand about central bank cryptocurrencies I learned just yesterday from an article published in the September 2017 BIS Quarterly Review. Here’s a link to the Quarterly Review in .pdf format. The article, Central bank cryptocurrencies, by Morton Bech and Rodney Garratt, begins in page 55.
The Quarterly Review article does not use the term “cryptodollar” – that’s my term for a cryptocurrency pegged 1:1 to the U.S. dollar, as described in the article.
Being highly suspicious of government, I can easily imagine a time in the not-too-distant future when the U.S. government will outlaw all cryptocurrencies except the official, Federal Reserve-issued cryptodollar. Of course, the justification given for that will be the need to crack down on rampant tax evasion and money laundering carried on in the non-government cryptocurrencies.
When the federal government establishes itself as the central clearing point for all cryptocurrency transactions into, out of, or within, the United States, they will have re-established their total control over the money supply.
Maybe I’m paranoid.
But, just because I’m paranoid, that doesn’t mean that they’re not out to get me.