Federal Reserve St Louis branch: Bitcoin is not backed by anything, just like real money

St Louis Federal Reserve branch has published a peculiar post on its website. In the unusual material, they provide three reasons why Bitcoin is actually not so far from the real money. The authenticity of website is confirmed by multiple sources and the post would have been deleted by now if it was the hackers’ work.

Firstly, both Bitcoin and modern money have no intrinsic value, because the United States is not using the gold standard anymore. This corresponds with the opinion of the father of Vitalik Buterin - Dmitry Buterin, too, thinks that talks about cryptocurrencies not being backed by anything were absolutely pointless.

Secondly, both dollar and Bitcoin have limited supply, and scarcity is one of the main features of any viable currency, tells the Federal Reserve Bank of St. Louis. Contrary opinion: one of the members of the University of Sydney thinks that the limited supply actually made Bitcoin less of a currency and more of an asset.

Thirdly, cash does not require any middleman, just like Bitcoin and other cryptocurrencies. Note that some observers are noting that the popular concept of blockchain systems eliminating a middleman might be overestimated.

Overall, the post looks like a clever attempt to play on the hype of Bitcoin and attract more visitors so that they could read about what the job of the U.S. Federal Reserve. Meanwhile, other branches and the central leadership of this organization are much more skeptical towards digital currencies. One can read older reports to see their views.

Image courtesy of Nonprofit Quarterly