Discussion on question by Gaurav Bhattacharya: Credibility of Central Banks

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20:01

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How can someone not trust the Central Bank of his/her country? What if it is corrupt? The question may be very silly, but I was told that the Bitcoin system was built to 'not rely on trust'. The system aims at removing centralized financial power. But, why would that even be needed? Are Central B...

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zeta-band

What do you think the function of the central bank is?

RonJohn

It wouldn't surprise me that some central banks are corrupt. But how many local vendors take bitcoin? (I'm betting "not many".)

Gaurav Bhattacharya

@zeta-band, a lot of functions, including, minting currency, regulating supply of money, prices of various commodities, foreign exchange reserves, etc

Pete B.

You are correct, the question is very silly.

Gaurav Bhattacharya

@RonJohn True that. But, what's the point of Bitcoin then?

@RonJohn why's it getting so much attention?

@PeteB. Curiosity always takes a part of my honor as payment

zeta-band

20:01

@GauravBhattacharya I've never heard of a central bank directly regulating commodity prices. Interest rate changes and more/less liquidity can influence the prices, but it is pretty indirect.

Gaurav Bhattacharya

@zeta-band Specifically, it controls the inflation rate by controlling the supply of money in the economy

@Grade'Eh'Bacon What is the purpose behind bitcoin then? The real purpose?

@Grade'Eh'Bacon I agree. Then. What's the point of using bitcoin? What do you think the founder thought when he made bitcoin? 'Central Banks can be corrupt, so I must solve the problem?' and I also agree that Bitcoin isn't free of fraud

@Grade'Eh'Bacon Umm...I'm no expert. Still in high school. Would you mind simplifying your statements?

@Grade'Eh'Bacon What about making a system that 'doesn't rely on trust'?

@Grade'Eh'Bacon I'm new to SE as well as BitCoin. Being a novice sucks

RonJohn

@GauravBhattacharya did you google "why was bitcoin created" before asking SE?

Gaurav Bhattacharya

@RonJohn I did. But there were too many reasons. Satoshi Nakamoto, however says that he wanted to make a system that doesn't rely on trust

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