Bitcoin: Threat to Central Banking. Government bans of Bitcoin will fail miserably!

This is more of wrapper blog post, around another excellent blog post from Forbes I found. It has to do with Bitcoin.

What exactly is Bitcoin, you ask? Well, if you're not yet caught up with the burgeoning field of P2P digital currency and cryptography of Bitcoin, I would suggest you to do so strongly and urgently. It promises to be the future, especially due to uncertainities of massive sovereign debts being accumulated by big and corrupt governments.

Go here:

About Bitcoin

and here:

What is Bitcoin?

Even a mainstream airline like Emirates has a dedicated article talking about the Bitcoin effect in their latest in-flight magazine of February 2013. Check from page 70 (in the actual PDF file, page no. 72) in following PDF file:

The Bitcoin Effect in Emirates In-Flight February 2013 magazine

A much older article in Wired magazine from 2011 discussing early adoption issues with Bitcoin: [The title of the article itself is reactionary, considering late 2011 was very early to already declare "Fall of Bitcoin".]

The Rise and Fall of Bitcoin

To summarize very quickly: Bitcoin is a MASSIVE threat to the monopolistic hegemony of Central Banking systems all over the planet. Bitcoin is the ultimate free market monetary system. Bitcoin poses threat to the crony "Politburo" system of Central Banking which can:

• Arbitrarily fix interest rates by having a meeting of bureaucrats sitting in a conference room.
• Arbitrarily print more and more fiat money out of thin air, diluting value of funds for those who've already saved "money".
• In an extreme scenario, create hyperinflation and plunge societies into catastrophic instability.

As stated above, I would urge you to investigate more on Bitcoin at above links and elsewhere. Go on, knock yourself out. I expect myself to be blogging more about developments in the field of Bitcoin in the future.

Not surprisingly, seeing what a big threat Bitcoin can be to the Fiat Currency model, big governments of the world will not take it easily lying down to it at first. There are murmurs developing of government bans on this wildly crazy idea of free market digital currency. Free market, who would have ever thought of that?

Following is the excellent article from Forbes I found, which claims that such attempts to ban Bitcoin by big governments will fail miserably.

Government Ban On Bitcoin Would Fail Miserably

Here is the best bit:

I maintain that a government ban on bitcoin would be about as effective as alcohol prohibition was in the 1920s. Government prohibition doesn’t even do a good job of keeping drugs out of prisons.

The best strategy for corrupt governments of the world with runaway debts is to hope Bitcoin goes away or becomes irrelevant. Unless there is a single coordinated plan with the force of gun to kill Bitcoin, it isn't going away.

The genie is out of the bottle!