Second premise is that Bitcoins must be used as a currency in its own right.

Most people using Bitcoins actually dont use it for any kind of transactions like buying and selling of goods.

The trading that goes on is based on speculation rather then market forces.

Article image

And this is the situation that the authors of this report warn about.

Once this happens, the United States Federal Reserve will have little say over the economy.

Right now the Fed controls the US monetary policy through a mix of fiscal policy measures.

Article image

This measures include tightening the availability of the US dollars to the US citizens as per the monetary policy.

Any policy move by the Fed would render their saving to be wiped out within months.

US Congressional Report indicts BITCOIN; Report Warns of Potential Bitcoin Threat to US Dollar

spot_img

source: www.techworm.net