Bitcoin’s lien problemPart of the BitcoinMania series
http://ftalphaville.ft.com/2015/03/24/2122678/bitcoins-lien-problem/At cryptocurrency and fintech conferences, FT Alphaville often hears Bitcoin enthusiasts make the assertion that Bitcoin is superior to fiat currency because it eliminates debt from the monetary system.
But this, of course, is a fallacy.
Bitcoin may have the potential to create a fully-funded reserve system, but it certainly doesn’t eliminate debt from any system.
At best, Bitcoin’s public ledger records a transfer of digital access rights in the eyes of the clearing network. It does not, however, record or see the terms and conditions of that transfer...