BITCOIN revisited.

My post in Quora.com

Bit coin- my journey

I had raised some doubts in my last post. Curious, I am, wanted to know more about bit coin and why it is being debated constantly. In a group in Linked in there was a reference to a paper published by the FED RESERVE US.

Page on linkedin.com

The publication was simple and provides a fundamental view on bit coin.

My reaction is that Bitcoin can only be speculative money and can never replace today's currencies. One interesting fact I observed is that the number of bitcoins that can be mined is limited. If that is true, then the value of  bit coin will become phenomenal, of course, with increasing demand of bit coins. Natural corollary is that the original creators of bitcoin will become the wealthiest persons. In fact they will become the rulers of the world if the entire world population is prepared to accept bit coin as the money. Human mind , will not permit such single ruler or group of individuals.  Human mind accepts the GOD because they can not identify him. Religious belief is based on this simple human psychology. We will, as a society,never accept another living individual as GOD. Having said that I do not expect this world to accept an universal currency whose value can be volatile and is purely a function of demand and supply. The trust will cease to exist.

Rightly the Bank of England has to come to the conclusion that Bit coins can never replace the existing currency.

Here’s What the Bank of England Thinks of Bitcoin