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1  Bitcoin / Bitcoin Discussion / Re: Do we Need Central Banks? on: December 08, 2018, 05:17:51 PM
Shifting from Central Planning to a Decentralised Economy: Do we Need Central Banks?
by Professor Richard A. Werner, D.Phil. (Oxon)

I. The Central Bank Narrative

For more than the past four decades, public policy discourse, especially when touching on macroeconomic and monetary policy, has been dominated by the views held and actively sponsored by the central banks, particularly in Europe and North-America, as well as Japan.

Their policy narrative has been consistent over time and virtually identical between central banks, which is why I shall refer to it collectively as the ‘central bank narrative’. It has been mirrored in the type of economics that central bankers have supported and that has indeed subsequently become dominant in academia and among the economists selected as the experts of choice in the major newspapers and television channels: the theoreticians advancing neo-classical economics.

This central bank narrative (and hence also the dominant neo-classical economics, also known as ‘mainstream economics’) has at least five major pillars, which I shall list briefly:

The truth of the matter is: We don’t need central banks. Since 97% of the money supply is created by banks, the importance of central banks is far smaller than generally envisaged. Moreover, the kind of money that commercial banks create is not privileged at law. Legally, our money supply is simply private company credit, which can be created by any company, with or without banking license.

Eurozone countries, having given up the right to their own currencies, can still create money and reflate the economy: the government, for instance in Spain, simply needs to stop the issuance of government bonds, and fund the entire public sector borrowing requirement from the domestic banks that create it out of nothing – and can do so at more competitive rates as the bond markets: this policy of Enhanced Debt Management (Werner, 2014b) not only would make it obvious that Spain does not need the ECB, but it would also put the national debt profiteers – the bond underwriting firms such as Goldman Sachs and Morgan Stanley – out of business.

This reality of private money creation also means that we can, without legal obstacles, create a decentralized system of local currencies, without central bank involvement.

The key principle of such decentralization is local autonomy, self-determination, self-responsibility and self-administration. These are in fact the fundamental principles of the co-operative movement, as championed by Hermann Schultze-Delitzsch and Wilhelm Raiffeisen over 150 years ago. This co-operative movement early on realized that a crucial role for co-operatives is in the creation of co-operative banks controlled by the local communities. Sadly, in the UK credit unions are not banks, since they are not allowed to lend to firms in meaningful amounts, and don’t have a banking license. Thus we need to create true community banks.

Lord Action pointed out:


“It is easier to find people fit to govern themselves than people fit to govern others”.


“Towns were the nursery of freedom.”


The German banking system is dominated by 1,500 community banks, which are also the majority of banks in the entire EU. This means that 80% of German banks are not-for-profit, which has strengthened the German economy for the past 200 years. A banking system consisting of many small banks is also far less prone to boom-bust cycles and it creates more jobs per given amount of loan than large banks. Thus community banks also result in a more equal income and wealth distribution.

Local banking is highly popular in Germany, because SMEs get access to finance that would not be serviced by large banks. The community banks provide their services at competitive rates and support their customers also during recessions. With community banks, the wider community gets a bank whose goals are aligned with theirs, banks that pay taxes, banks that support local growth and jobs. At the same time community banks offer customers a place to put their money where it can benefit the local community, not far-flung projects or speculators.

Can we tackle this challenge?

Until the 1970s, there has been much optimism in economics and there have been high expectations that many of the problems of mankind would soon be solved.

Was this a reasonable expectation?

While it has not come true, it was a reasonable expectation. This is because


“Our problems are man-made, therefore they may be solved by man. And man can be as big as he wants. No problem of human destiny is beyond human beings”

John F. Kennedy
I think if this problem is regarding to the financial condition of a country, of course we need a central banks, because we need at least one institutions that can rule and make the law regarding to the financial system in order to make it equal and fair. But, if this case is for bitcoin i think we don't need a central banks. Because the initial goal of bitcoin is to make a decentralized system that based on freedom.

I agree with the comment from 135cc. In my opinion, the central bank has an important role in a country. Meanwhile in the other hand, bitcoin is not. Then in some countries, there are still many people unfamiliar to the cryptocurrency, especially bitcoin. To make people believe will take time too. Also most people don't even want to learn it. For now, fiat still occupies a position for transaction needs.
2  Bitcoin / Bitcoin Discussion / Re: Why most people believe bitcoin to be worthless? on: December 08, 2018, 05:17:07 PM
Because not everyone likes change and not everyone invests their money into something more valid. They also like easy money and obtain everything instantly. Whereas, there is no instant success. Even if they seek further information, they know the truth. Rather than paying attention on mainstream news where critics are paid for it.
3  Economy / Economics / Re: Is the Market Stabilizing? on: December 08, 2018, 05:14:54 PM
Rise so high and fall so low I think it’s a natural condition for bitcoins, we cannot know when it will rise so high and fall so low. It won’t last long if the price is stable so don't be afraid if bitcoin prices dropped so low, the price will rise high again. Never be surprised and panic you have to keep up for a long term until there will be the right time to take advantage when the price rise.
4  Bitcoin / Bitcoin Discussion / Re: How do you promote Bitcoin? on: December 08, 2018, 10:33:12 AM
For me, I will play the video on YouTube. Make presentations of blockchain, cryptocurrency, about the advantages and disadvantages of investing in bitcoin. Share with friends or family. If they are interested and ask more details, I will explain clearly the risks and the benefits of investing in cryptocurrencies. Not recommend to look at prices every day. Then explain what panic selling is.
5  Bitcoin / Bitcoin Discussion / Re: Make Bitcoin Great Again on: December 08, 2018, 10:32:47 AM
People always comment negatively about bitcoin. Whereas, it’s already very good, both in the system and price. When someone is introduced to bitcoin, blockchain and cryptocurrency, they don't look for market information that can be seen on the internet. People need education about cryptocurrencies. At least that’s what I think.
6  Bitcoin / Bitcoin Discussion / Re: Bitcoin Destroyed me at all. on: December 08, 2018, 10:31:59 AM
Chill out. The first thing you have to do is think positive and wait for the price to soar high again. Don’t check the prices every day. Forget and assume the money you invested has lost. 5-10 years later you will smile seeing the price of bitcoin is 5 even 10 times higher the current price. Cryptocurrencies are proceeding towards the mainstream. The key is to be patient.
7  Bitcoin / Bitcoin Discussion / Re: Does it even matter if governments and banks accept cryptocurrency? on: December 08, 2018, 10:31:06 AM
Yes, it does matter. Many positive effects if the government begins to accept cryptocurrencies. The first one is the increase in foreign exchange. Singapore for example, they set their tax laws apart. Lots of people will invest their money in bitcoin. I personally think it would be better for many countries to legalize cryptocurrencies. The blockchain itself is the safest system at the moment. How fast the economic growth will be when foreign investors transacting using bitcoin in a country.
8  Bitcoin / Bitcoin Discussion / Re: Is crypto capable of making the world go digital? on: December 08, 2018, 10:30:11 AM
Based on the industrial revolution 4.0, all equipment is already using digital system. Want to travel? Use Expedia, or Skyscanner. Want to go somewhere? Use Uber. Hotel? Trivago. Now people are more comfortable buying goods online than walking and waste their time. So is bitcoin, people know more about cryptocurrencies. But I don't know if fiat can replace cryptocurrencies. At least bitcoin has been processing. There are no transactions as safe and as fast as blockchain. Blockchain is the latest technology at the moment.
9  Bitcoin / Bitcoin Discussion / Re: 10 Real places where you can spend your Bitcoins today on: December 02, 2018, 01:43:02 PM
What a time to be alive. Slow but sure, more traders using bitcoin as a tool of exchange. I think it's quite a relief if a few years later every shop in each country sells goods using cryptocurrencies. We can hope that will happen. Maybe everything will be more practical.
10  Bitcoin / Bitcoin Discussion / Re: Is it Game Over for Bitcoin? on: December 02, 2018, 01:41:33 PM
Bitcoin is having ups and downs. Like last year, it always survives in many fields. This is an annual topic raised with different packaging. This doesn't change anything. People have a low level of patience so they make decisions not using their logic. In fact the new game will begin in this winter. The game is on!
11  Bitcoin / Bitcoin Discussion / Re: Bitcoin great idea bad execution on: December 02, 2018, 01:40:02 PM
1- Whales control big percentage of the 21 M Bitcoin  
Unfortunately until now we haven’t reached the "21 M". If we look at coinmarketcap, the number of coins currently in the circulation are only 17.3 M.

2-they can manipulate the price

Right, but not just in Bitcoin, I think every market is like that and until now there is no solution for this.
3- they did created new coin each time they disagree LTC BCH BITCOIN GOLD ...etc
This is because of a fundamental problem that they don't agree with, if you are in their position I'm sure you will do the same thing like they did. This has two sides, on a hand Bitcoin lost its big players and on the other hand this enlivened the crypto market and the spread would be wider because they would fight harder to save their money.
4- if you have a bitcoin you will not used as a money you will always want to keep either to sell it higher price or waiting till it reach you buying price to recover your loss
For now I personally see Bitcoin as an investment asset, indeed sometimes I use it for transaction but it’s so rare, especially if it compared to using FIAT.
12  Bitcoin / Bitcoin Discussion / Re: Ohio accepts Bitcoin! on: December 02, 2018, 01:37:33 PM
Hi guys,
I saw this article:
which is about payments allowed in the US state, Ohio, that allows tax payments with bitcoin.
It's really cool that everyday more and more states/countries are starting to allow cypto payments. There is a real potential here i guess.

I think that in the future we might or we should have also some sort of marketplace that allows buying/selling from bananas to cars with cryptocurrencies. Won't that be cool?
This is an excellent news when a state in a world power accepts Bitcoin as a form of payment. I believe everything is back and this damn market can stop. I hope that useful information will be released to help the market recover.
This is a good step and other states may follow this, the potential tax obtained from the crypto industry is quite large and it’s so wrong if they don’t take the opportunity, and especially considering US is one of the big players in the crypto field.

I doubt that news like this has a significant impact on the market, especially this is just one state. No need to rush, man.
13  Bitcoin / Bitcoin Discussion / Re: Do we still believe in Bitcoin? on: December 02, 2018, 01:36:25 PM
Truly there is nothing more annoying than being patient and waiting. But patience will always bring sweet results. This applies to cryptocurrencies, no exceptions. There are millions of people who regret for not investing their money into bitcoin a few years ago. Cryptocurrencies is a long-term investment with fantastic profits. Don’t let us be one of them. Bitcoin will grow and will develop more. At least that's what I believe the most.
14  Bitcoin / Bitcoin Discussion / Re: A Billion People Will Be Using Cryptocurrency in 5 Years: Brian Armstrong on: December 01, 2018, 02:41:53 PM
As quoted by Brian Armstrong in Business Insider (,
“It can be scary the first time you see it, but to us who have been in the industry for many years, it feels like old news,”
So this statement isn’t surprising if a few years later people will use bitcoin. More people are investing money to bitcoin every day. This shows a positive balance in the implementing the idea that cryptocurrency is normal.
15  Economy / Service Announcements / Re: Buy in Amazon with Bitcoins. on: December 01, 2018, 02:41:07 PM
Will help when we have a problem buying goods on Amazon like the items received defect physically or don't arrive at the destination? If does then it will be easier for us to buy using on Amazon plus we will get a purchase discount. and if does not then it will harm us where we will have difficulty to complain items that have physical defects/not reaching the destination we bought from Amazon using, because we don’t but directly from Amazon using our Amazon account but we use a 3rd party services to buy on our behalf to deal directly with Amazon.
So in my opinion we’d better buy using our Amazon account to buy from Amazon so it will be safer with Amazon policies. Not difficult to exchange bitcoins we have into fiat to spend on Amazon without using just because of discounts.
16  Bitcoin / Bitcoin Discussion / Re: The Lower The Price Of Bitcoin Gets, The Better. This Will Lead Us To Salvation on: December 01, 2018, 02:39:04 PM
It seems that you consumed too much drugs like a religion fanatic and the funny thing is your opinion about wanting the price of Bitcoin become cheap and become an international currency are so wrong and contradicting against each other. How long have you been in the crypto field? Do you understand the market concept? Did you mean Bitcoin must have a fixed value like USDT or do you just want to make profit as much as possible? If you want to make a profit, you can invest your money in the ICO.
17  Other / Off-topic / Re: If BTC is not the best way to save money, What you think is the best ? on: December 01, 2018, 02:38:11 PM
If BTC is not the best way to save money, What you think is the best ?

If you want to save your money put it on a bank or on your wallet.
by only saving your money in the bank, the money will only lose value gradually due to inflation and bank fees.
I would rather suggest that you invest your money in the real estate sector and bank deposits if you want to invest safely but surely.
18  Bitcoin / Bitcoin Discussion / Re: bitcoin bankruptcy on: November 29, 2018, 09:23:54 PM
Bitcoin is very risky so investing in bitcoin is not arbitrary and must have a broad knowledge in order to get a big long-term profit, maybe for now bitcoin price is dropping but we never know when bitcoin will rise again. Bitcoin is unstable and very difficult to predict its price at the future.
19  Economy / Economics / Re: Cryptocurrency news on: November 29, 2018, 09:23:30 PM
This is a good news to encourage other countries to use bitcoin. Because of this news, maybe several countries will look at and follow Bulgaria’s steps that using cryptocurrency to ease and speed up transactions and the country's economy
20  Bitcoin / Bitcoin Discussion / Re: Bitcoin does not have limited supply on: November 29, 2018, 09:22:42 PM
Actually it’s a basic knowledge, every bitcoin fork is actually not bitcoin but it’s a new altcoin created. And that's why bitcoin have limited supply that we already know the supply is 21 million, but from the bitcoin fork it’s altcoin that has a lot of supply or arguably unlimited.
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