[2014-08-25] Why There Should Be A Bitcoin Central Bank

[bitbouillion]

Yes it does it is the first time in history that you can see the availble number of "gold" availble in the system!
at this time https://blockchain.info/charts
is never done before , so this DOES change underlying economics.

I completely agree.

What I meant by "technical concept" is fractional reserve banking, and that doesn't change those economics.

The concept is simply not applicable to Bitcoin, due to it's highly deflationary nature.

[notthematrix]

Yes it does it is the first time in history that you can see the availble number of "gold" availble in the system!
at this time https://blockchain.info/charts
is never done before , so this DOES change underlying economics.

I completely agree.

What I meant by "technical concept" is fractional reserve banking, and that doesn't change those economics.

The concept is simply not applicable to Bitcoin, due to it's highly deflationary nature.

the real skeleton in the closet is explained here https://www.youtube.com/watch?v=iFDe5kUUyT0&t=12m30s
Inflationairy currency's need to grow to keep in exesistence but this is not possible against earth resource's that are finite.
So we need a Deflationary system that does not need growth so we can go to a resource based economy , we can not spend more resource's then this planet has , it can not grow endlessly as we try's to do now.
When Bitcoin is in place a inflationary system can safely fail , without  the changes of ending in world war over the last resources.

[Wekkel]

The fun part: Bitcoin does not care about someone's wish for a central authority.

[bitbouillion]

Inflationairy currency's need to grow to keep in exesistence but this is not possible against earth resource's that are finite.
So we need a Deflationary system that does not need growth so we can go to a resource based economy , we can not spend more resource's then this planet has , it can not grow endlessly as we try's to do now.
When Bitcoin is in place a inflationary system can safely fail , without  the changes of ending in world war over the last resources.

I completely agree with you.

Economic growth and second law of thermodynamics causes planet destruction in less than 500 years even if we used only clean sources of energy. I hope that Bitcoin can stop that insanity. Fractional Reserve Banking would be counterproductive, but it won't work with Bitcoin anyway.

I like the similarity: