The discussion on the 2008 financial crisis happening again given we have a digitalised currency was great and I thank you for all who gave their views.
But what do you think the central bank ability is to reduce the effect of the 2008 financial crisis given bitcoin was the main currency?
The point of Bitcoin is that it cannot be controlled by any central authority, a central bank would do nothing.
The reason of that, and any bubbles, is due to fractional reserve banking, promoted by the Chicago school of economy (growth by debt). The Austrian school of economy want to do away with fractional reserve banking, therefore no central bank, but also no bubbles to pop up later. It is a boring, but firm growth by saving (actual accumulation) of money that actually exists somewhere.
So in short, switch to Austrian economics, and adopt Bitcoin, and/or use gold as fiat which is what they actually wanted.
You don't need a central bank or a federal reserve because the sole reason that exists is to bail out banks in case of a run. And runs can only exist under fractional reserve banking. The fact that in some countries the central bank also manipulates the fiat, only exacerbates the problem.
If your country had adopted what the "Austrians" (Mises, etc.) proposed a century ago, bubbles like these would never happen. Stop bubbles from forming, so you never have to deal with them later.
