St. Louis Fed Vice President David Andolfatto has outed himself as the central bank official most bullish on Bitcoin.
In a new presentation, Andolfatto calls Bitcoin “a stroke of genius” and says the digital currency’s technology is causing existing financial institutions will have to “adapt or die.”
And he says central banks — including the Fed itself — should welcome the challenge Bitcoin has posed. Hence the image above.
Besides his enthusiasm, his presentation provides a really clean, simple snapshot of what Bitcoin is for anyone who may still be fuzzy on what it is.
Check it out.
In the real world the Fed manages the money supply. In Bitcoin, there is no Fed equivalent -- it's managed by the Bitcoin network.
In exchange for creating more Bitcoin, they work to approve transactions. Their work must be confirmed by other miners.
You may have heard about problems at the MtGox exchange. These were not the result of Bitcoin itself.
Bitcoin is no more inherently prone to facilitating crime than any other currency, Andolfatto argues.
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