OK, when you hear economists say something you immediately take the other side. BUT, these are Bank of Finland researchers AND they make the case that bitcoin can’t be regulated. Bitcoin is revolutionary and, they conclude, cannot be regulated and trying to do so is futile. Here is a really good read and although not officially branded by the Bank of Finland (it was a research paper) it makes sense. Why? Because I agree with it.
“In what is sure to be a well needed shot in the arm for Bitcoin after a tumultuous few weeks in the cryptocurrency market, economists at the central bank of Finland have released a paper that calls Bitcoin’s economic system “revolutionary.” With the currency operating on a blockchain, the researchers contend that a degree of protection exists to make the system safe from those who wish to manipulate it. The group finds that:
Bitcoin is a monopoly run by a protocol, not by a managing organization. Familiar monopolies are run by managing organizations with discretion to determine and then change prices, offerings and rules. Monopolies are often regulated to prevent or at least mitigate their abuse of power.
The researcher go even further to say that Bitcoin cannot be regulated. “There is no need to regulate it because as a system it is committed to the protocol as is and the transaction fees it charges the users are determined by the users independently of the miners’ efforts.”
It must be noted that the views expressed in this paper do not represent the official stance of the Bank of Finland…”
Full Story Thru Link Below at Futurism.com