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A tl;dr of "Why Central Banks Will Fail at Digital Currency"

by Kyluke McDougall on 23 February 20183 min read

Here are some bits and pieces pulled out of an excellent article posted on hackernoon.com

"These are the true origins of Bitcoin and everyone knows it. Bitcoin is a solution to the problem of the State having absolute control over the form and supply of money and the regulation of banks. That is why it is so powerful; it solves two difficult problems at once, and offers an unimaginable number of secondary uses that are tangential to the money use of Bitcoin."

"There is no place in the Bitcoin world for the Federal Reserve; Bitcoin was designed to destroy it. This is the real reason these institutions are testing new networks." (aka Ripple)

"there is no Blockchain without Bitcoin:"

"you will never again see people complaining that a bank where they had an account has shut off their access to their own money. All the artificial rules and restrictions of the central bank licenced banking system evaporate in Bitcoin."

"Bitcoin is not a simple transition to a new medium. It is a paradigm shift. Every assumption about what money is, how it is stored, who should control its production, how it is transmitted and managed is turned on its head in Bitcoin. This is not a simple matter of moving from Oracle to MySQL; this is the equivalent of computing without computers. Its something that is very hard to accept for people inured to the idea that the State should be the sole provider of money; "

"the idea that anyone should rely on a State issuer of an alt-coin for money is absurd."

"You do not need to “put an asset on the network”. All you need Bitcoin for is a means of accounting for something. Once again, this idea of “putting assets on the network” is an example of computer illiterates trying to find a use case for something designed to do a job that they do not believe needs to be done. None of these people believed that there was a need for Bitcoin before Bitcoin existed; they were all happy with the Federal Reserve and its fiat currency, inflating money supply and all the ills that were borne of it. They had no interest in cryptography, privacy and especially financial privacy, which they believed was inherently criminal and they still do."

"This is the explicit purpose of Bitcoin; to eradicate the central banks and put the money function out of reach of regulators permanently. People are asking the wrong questions about Bitcoin. One of these wrong questions is “What role should we (the state) play in the emerging digital asset economy?” The answer is you have no role to play. You are now nothing more than peers on the network at best. You will only be tolerated if you provide a useful service."