@Phoenix32890,
Bitcoin is a private blockchain – based currency system which amounts to a cybernetic replica of an honest gold-based monetary system, down to the detail of a computer simulation of the economy of mining and producing gold. The real technology in the picture and the thing which you need to understand more than any one particular crypto currency such as Bitcoin is block-chain technology, which has uses and applications beyond the question of private monetary systems.
The biggest political issue in the world, now even as it was 300 years ago, is the question of the nature of money itself, who has the right to coin it, produce it, what if anything it is supposed to be backed by were based on etc. etc. In theory, in the United States, only the federal government is supposed to have such rights. The present system in which the Federal Reserve creates money and the government borrows money into existence with us paying interest on it amounts to a usurpation as per Ellen Brown's "Web of Debt". That usurpation took the form of the Federal Reserve being created in 1913 along with the income tax. The idea was to use federal debt as a primary basis for money, allow the income taxed to pay interest on the debt, and more or less roll the principal over in perpetuity. At best that was a fragile system, at worst a time bomb with a 100 year fuse. Outside of the illuminati or whatever you care to call them, just about nobody is happy with this present system
And so a bunch of guys with no particular license to do so get together and create their own money system...
What could possibly go wrong?? For starters, governments could shut the whole thing down anytime they feel like it, either directly by legislative action or indirectly via manipulation of their own currency; in either case, people holding crypto currencies would be left holding the bag.
Another major problem is that the coin mining feature of Bitcoin is basically harebrained, regressive, and inflationary.-
A very reasonable system based along similar lines could be adapted by individual states: the idea would be for a states to create its own state bank similar to the bank of North Dakota and its own crypto currency of the same time and, rather than using any kind of a coin mining scheme to increase the money supply (as is the case with Bitcoin), use the creation of credit for infrastructure and credit worthy business applications as a main system for increasing the money supply (which would not be inflationary).
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