[cryptography] Bitcoin, was Nirvana

James A. Donald jamesd at echeque.com
Mon Sep 26 00:10:11 EDT 2011

On 2011-09-26 11:20 AM, John Levine wrote:
> It was that, being a metal-based currency there was no central bank
> (other than, perhaps, JP Morgan) to provide liquidity in a crunch.

The crunch resulted from bankers borrowing other people's money to make 
risky bets:  Heads the bankers won, tails someone else loses.  One day 
the bankers lost, and a "liquidity" crisis ensued.

Sounds familiar?

Having a government apparatus to fix liquidity crises is not a solution. 
  I recommend instead bankruptcy, and indentured servitude to for those 
bankrupts whose lenders were misled.

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