Bitcoin experts refuted the Fed’s Haq not bitcoin price instability cannot trust
Since April 4th the United States Bloomberg, Philadelphia Federal Reserve (fed Philadelphia branch) chairman Patrick Haq published an article on the digital currency.
In the article, he bitcoin, bitcoin price volatility and block chain technology in the bank’s future, and the block chain established by the “trust” expressed their views.
Bitcoin experts argue the Fed Haq: not bitcoin price instability cannot trust
Philadelphia Fed President Patrick Haq believes bitcoin price instability, and therefore cannot be trusted as legal tender
Huck said in the article, and other digital currency bitcoin will not replace the bank.
In the foreseeable future, digital currency will not overthrow the traditional financial institutions, approved by the government, will not replace the role as the core of traditional financial institutions. “
Haq believes that the digital currency does not make banking financial services and banking system become more modern structure. This paper stressed that a dollar is a dollar, people know that the US dollar, and know that the dollar will maintain its value. Haq believes that the value of digital currency due to excessive volatility, therefore does not like the dollar has the same level of trust.
“In the United States, the central bank issued currency stability in the economy is very useful, because we believe it. A dollar is a dollar, not many things can destroy this belief. Although we will experience inflation, but not often appear such dramatic changes.”
A feature which you see from other digital currency bitcoin is the currency value, the degree of fluctuations is very severe. We can not help thinking, is there a digital currency price is stable enough, as the legal tender issued by a government as widely trust and use.
But Huck said, is not to say that private capital digital price instability will never trust. Haq said that if the market demand increases enough, then the digital currency can be stabilized.
Economists explain, if the current is not “trust” is a digital currency, bitcoin and other encryption currency because of the lack of use and the emergence of sharp price movements. This means that the digital currency is still in price discovery economists usually call “stage”. In other words, in fact, coins and other digital currency in the market is not too much liquidity, so its price always fluctuates.
According to the bitcoin expert DanielKrawisz said, even if the encrypted currency price is not stable, but they can still trust. Krawisz has published an article said, bitcoin can be used as a legitimate currency cannot be eliminated “. At the same time in the universe is not what is inherent in “stable”.
The so-called “stability and eternal youth, love potion or perpetual motion as” reality. “. But it is not in some parts of the universe have been found, but for some people, let people believe things like that can exist. So we should stop looking for ‘bearing stability’ and accept the price, like the world, unstable reality. Otherwise, the price could not help people to coordinate the allocation of scarce resources.”
Krawisz’s remarks represent the typical bitcoin supporters view, they think the Philadelphia Fed President Haq’s “currency stability” can only deceive the ignorant masses, politicians are always trying to control everything, “stable”. Even if the monetary stability is proposed by Haq, only politicians by artificial means of adjustment. In fact, the currency is in changing process.
Bitcoin proponents have refuted Huck’s view, saying that if people continue to use other digital currency bitcoin, these emerging currencies will inevitably take the road instead of legal tender. Other supporters stressed that monetary “stable” does not mean “trust”.