@tomot said:
The interesting thing about Bitcoin is that it’s made everybody start to talk about what money is, and why money has any value. If you think about it, since 1971, when the US came off the gold standard, the dollar hasn’t been linked to gold, it hasn’t been linked to anything. You have a piece of paper which says ‘In God we trust’, it does not say 'In Government we trust'. That piece of paper is absolutely meaningless. You’re putting your trust into banks and central authorities. The Federal Reserve which prints the dollar has nothing to do with anything Federal. Its simply a private banking corporation, which has the authority to print the dollar for the Federal Government. The Fed is also very busy these days printing more paper.
Bitcoin is a whole new idea about what money is, money is basically regulated by network and by the people.
Recently Central banks around the world are looking at the development of Bitcoin with a lot of fear, and not just central banks, but the traditional banking system as a whole. Bitcoin has been around since 2008. Regulators didn’t pay any attention to it, they dismissed it as some sort of monopoly money. But things are changing for Bitcoin.
Funny thing is, the dollar you use daily, no longer supported by gold, is also monopoly money, ... is it not?
Speaking of Gold; Germany recently wanted to repatriate their gold stored in US vaults
http://nsnbc.me/2013/04/18/federal-reserve-refuses-to-submit-to-an-audit-of-germanys-gold-held-in-u-s-vaults-2/
Which raises the question where is the Gold? ...is paper backed by nothing, nothing more than the ultimate Ponzi scheme?....do you care?.
I would hardly call U.S. money absolutely meaningless. If you truly feel that way, you're more than welcome mail me all your money, and I'll take care of that meaningless paper for you.
Contrary to popular belief, the Federal Reserve does not print money. U.S. currency is printed and minted by the Bureau of Engraving and Printing (BEP) under the Department of the Treasury.
"In God We Trust" is just a logo. Paper money also has the words "THIS NOTE IS LEGAL TENDER FOR ALL DEBTS PUBLIC AND PRIVATE" and is signed by both the Treasurer of the United States and the Secretary of the Treasury. The value of U.S. currency is backed by the full faith and credit of the United States.
Your assertion that the Federal Reserve is a private banking corporation or that it has nothing to do with anything Federal is wrong. The Federal Reserve System (aka the Federal Reserve, the Fed), the central banking system of the U.S., derives it's authority through The Federal Reserve Act of 1923 and subsequent congressional statutes, and is subject to congressional oversight. The U.S. Congress established three key objectives for monetary policy in the Federal Reserve Act: Maximum employment, stable prices, and moderate long-term interest rates. Its duties have expanded over the years, and today, according to official Federal Reserve documentation, include conducting the nation's monetary policy, supervising and regulating banking institutions, maintaining the stability of the financial system and providing financial services to depository institutions, the U.S. government, and foreign official institutions.
