Bitcoins is known as a peer-to-peer digital currency that currently operates with no inter-mediation of a central authority. This digital currency thus has no nation or government protecting it nor giving it any any value or trust. The Bitcoin process is fully digital and no paper money has ever been issued under its name. So the question is, should Bitcoins be allowed to operate and can they be trusted?
The digital currency
This Bitcoin currency not only operates in the U.S but at an international level as well. Thousands if not millions have said to have used this digital currency. The value of the Bitcoins themselves has been issued directly by the people. The problem is that, if no government authority is protecting the digital currency, then how can you know it’s valuable? Is the power of the people sufficient?
If we think about this in more detail we can conclude that a currency, whether it be digital or physical, should have some type of protection, value, and trust issued by someone or something. If we do not believe that the people have the power to give value to a currency, then why do we let the Federal Reserve do it? The Federal Reserve is what gives our money it’s power, but what is it backed by? Why are they so secretive? How are they any different than Bitcoins?, see pic below.
President Kennedy, in the video link below, was the first president to give a speech challenging the Federal Reserve and demanded answers. Since the Fed would not comply or share its secrecy, President Kennedy issued Executive order 11110, “which delegated to the Secretary of the Treasury the President’s authority to issue silver certificates under the Thomas Amendment of the Agricultural Adjustment Act, as amended by the Gold Reserve Act”. The order would have allowed the Secretary to issue silver certificates without permission of the Federal Reserve. This would have worked by allowing us to know what exactly gave our currency its value, instead of us having not idea at all, but sadly he was killed 6 moths later.
-To understand the Federal Reserve better, please watch the video link below, and yes the above 5 dollar bill above does not say the Federal Reserve anywhere on it because this 5 dollar bill is backed by actual gold or silver versus thin air like the Fed’s 5 dollar bills-
So should we trust the Federal Reserve? If you believe we should, then why should we not trust Bitcoins?