Despite some ups and downs, bitcoin has shown a refusal give up. It has earned backing by some of the largest corporations in the world, and its popularity seems to grow with time.
The U.S. government has shown both interest and intimidation when it comes to the digital currency. It has seized it, sold it and taxed it, and now an economics professor at Georgetown University, James Angel, is suggesting that the government side with it. In other words, they should create what he’s calling the “bitdollar,” a digital currency similar to bitcoin that’s also backed by the U.S. dollar.
Angel states:
“A ‘bitdollar’ would help bring the idea of an open payment network to ‘maturity’ … I think Janet Yellen (new head of The Federal Reserve) ought to get out in front of this, to put some competition into the payment space.”
Much like bitcoin, bitdollars would use technology similar to the blockchain, and all transactions would be recorded online, but the main difference is that users would not just be paid in minted bitdollars, but would also receive a small cut of every transaction on the network.
Furthermore, Angel also believes that bitdollars would have a huge edge when trying to gather everyday users:
“The main benefit is that you’ve got the network advantage of the US dollar. You basically would provide instant legitimacy.”
We’ve all heard the old phrase, “If you can’t beat them, join them.” Perhaps, when ready, bitcoin and government will finally (and fully) join hands to create a solid, financial future for all.
Nick 
kinetiktrader 
votingmachine 
JOIN HANDS? Are you effing kidding me? With psychopathic tyrants disguised as mere greedy oligarchs? No thank you. The object of this long-game is to depart completely from debt-based rags, ultimately shattering the viperous economic chokehold over populations by inherently, and necessarily violent institutions whose very existence is perfectly unjustified. Not to “join hands” and sing a perverted, statist version of cumbaya with civilization’s sinister oppressors! Ultra facepalm @ “A solid financial future for all”. Yeah, we see what a fantastic job snot-paper has done thus far with that… A more likely scenario, is that Bitcoin will do to dollars, what the Internet did to the fax-machine.
The government can create and issue centralized bitchdollars if they want. They’ll be the only one using them, on a lonely-ass bitchdollar blockchain.. “Instant legitimacy”… Phssst.
Thank you both for your comments. As I’ve mentioned in my other articles, I am always open to hearing elaborations on these boards. It is always interesting to have topics that start fresh debates.
How can someone be so smart and no streetwise cred at all.
You serious? A digital currency maintained by the same thieves BitCoin takes us away from.
If they can’t cheat the ledger they’ll evolve to something else.
There is no reason for a government action. Bitcoins main value is as a transaction process. The dollar has a LOT of those: credit cards, banks, traveler’s checks, money orders, checks, payday loan sharks, etc. Dollar transactions can get better. But that is not a government role. The government has created and maintained the dollar as a currency. The rest will get done by 3rd parties.
People love the way other businesses are using the bitcoin in unexpected ways. The same thing happens with the dollar. A better electronic transaction using dollars will succeed if people like it. Apple-Pay, PayPal, etc. If some transaction mechanism is better … more secure, simpler, lower fees, etc, then people will use it.
Bitcoin is not a long term transaction medium. It will eventually be useless and valueless. Better payment systems using dollars will be available, but from independent companies, not from the government.