Bank of England bit coin

Generali

Here is 850,000 reasons not to invest in Bitcoin:

http://money.cnn.com/2015/09/11/news/mt-gox-mark-karpeles-embezzlement/index.html?iid=EL

antrobus

MJ12 wrote: »

...There's a law for this
https://en.wikipedia.org/wiki/Gresham's_law

It would happen if a different currency is allowed to be used along side Bitcoin or crypto-pound, or whatever commodity money we happen to adopt.

That was my thinking. After all, significant amounts of paper money are used in the shadow economy. As in, drugs and prostitution. If paper money were to be replaced by an official crypto-currency, those active in such businesses would find something else to use. Dollars, bitcoin whatever.

HAMISH_MCTAVISH wrote: »

Money hoarding is probably more of an issue for the masses, who neither understand nor can appropriately manage FX risk and trading costs, capital flight is a concern for HNW individuals and corporates.

We've already seen the very wealthy and large financial institutions are prepared to accept zero or negative rates on a number of financial instruments globally provided in return they get to keep their money in a low risk environment.

If global circumstances ever warranted negative rates then it's likely all comparably low risk countries would adopt similar policies. So capital flight becomes less of an problem.

Yes. That's what I would be saying. Negative interest rates would obviously apply to the 96% of the money supply that is currently 'electronic'. People will do what they do in reaction to that development. Going crypto to include the other 4% seems rather pointless. At least, neither Sweden nor Switzerland who do have negative rates, appear to be concerned about that particular issue.

MJ12

Generali wrote: »

Here is 850,000 reasons not to invest in Bitcoin:

http://money.cnn.com/2015/09/11/news/mt-gox-mark-karpeles-embezzlement/index.html?iid=EL

This is like saying Lehman brothers were 700,000,000,000 reasons not to invest in shares and stocks.

MtGox was a failed exchange. Mark Karpeles is going to jail. No one went to jail at Lehman.

Generali

MJ12 wrote: »

This is like saying Lehman brothers were 700,000,000,000 reasons not to invest in shares and stocks.

MtGox was a failed exchange. Mark Karpeles is going to jail. No one went to jail at Lehman.

Not really. Mt Gox showed the inherent flaws in Bitcoin.

padington

Generali wrote: »

Not really. Mt Gox showed the inherent flaws in Bitcoin.

Forgive me if I'm wrong but as far as I understand the bit coin code has never been hacked.

A bank that stored it however was robbed.

Furthermore the Bank of England wouldn't use bit coin per se, just utilise the genius bit that is the revolutionary code that creates the 'block chain'. The very code that will soon be, I believe, the foundations of all capitalist endeavours.

MJ12

Generali wrote: »

Not really. Mt Gox showed the inherent flaws in Bitcoin.

What flaws are you referring to?

wotsthat

Not sure why the BoE would use the favoured currency of child abusers, druggies and terrorists to try and reduce cash use.

Why not just print less cash?

Everyone's pushing contactless now so it's happening anyway. Retailers must love it as the time people give to considering a purchase gets ever shorter.

padington

wotsthat wrote: »

Not sure why the BoE would use the favoured currency of child abusers, druggies and terrorists to try and reduce cash use.

Why not just print less cash?

Everyone's pushing contactless now so it's happening anyway. Retailers must love it as the time people give to considering a purchase gets ever shorter.

They won't I don't think, they will simply incorporate the block chain into the digital pound.

antrobus

wotsthat wrote: »

Not sure why the BoE would use the favoured currency of child abusers, druggies and terrorists to try and reduce cash use.....

The proposal is not to adopt Bitcoin assuch, but rather "to scrap cash and adopt a state-issued digital currency like Bitcoin".

wotsthat wrote: »

...Why not just print less cash?.....

Because cash is printed to meet demand.

wotsthat wrote: »

...Everyone's pushing contactless now so it's happening anyway. Retailers must love it as the time people give to considering a purchase gets ever shorter.

Paper money is likely to become less significant for that very reason. In the legitimate economt at least.

antrobus

padington wrote: »

They won't I don't think, they will simply incorporate the block chain into the digital pound.

And this digital pound is a replacement for cash. But over 96% of the money supply isn't cash. Thus it is of no real consequence.