digital blockchain behind the digital Bitcoin this proposal: Bank of England Economist Proposes National Digital Currency is based upon,
prevents new Bitcions from being issued unless an increasingly difficult
set of mathematical queries based on previous transaction are answered quickly enough. Already, only
wealthy players with custom made computers can afford to become Bitcoin
"miners." Now who does that sound like? If you answered JP Morgan,
Goldman Sachs and the like, you're right, as this related article points
out: JPMorgan CEO Issues Cautious Remarks on Blockchain Tech (Hint: Jamie Dimon is not THAT cautious).
why would the Bank Of England be willing to gamble on such an unstable thing?
Maybe they think having the Central Bank somehow behind a digital
currency would stabilize it by making it legal tender, but more likely
it is part of the escalating war on cash implied in the article first
cited. Central banks can't go below Zero Interest Rate Policy (ZIRP) effectively as long as there
is a cash alternative that is effectively at ZIRP already - or less only
if that form of cash ceases to be printed, much like United States Notes have been, which now sell for 3 to 5 times face value on eBay
(it used to be just 2X a few years ago; U.S. Notes are a good
digital currency then, is yet another way for the rentiers to extract
wealth from the rest of us, by effectively imposing a tax on unspent
money and forcing us to consume with it instead and then "buy" more
digital money with our labor. It is a way around ZIRP and a way for the rich banks to make yet more money.
Although Bitcoin and similar digital currencies were born of anarchist rebellion against the bank-issued currency monopoly, this is now beginning to backfire, as these experienced elites figure out how to monopolize such a currency for their own ends.
This will end very badly for the 99% if the 1% elites get their way on this.
The only true alternative for the 99% is money not issued by banks, including the Central Bank - e.g. United States Notes.