On 25/08/14 01:27, Tom Worthington wrote:
> On 21/08/14 23:57, Frank O'Connor wrote:
>
[]

>> And no government in their right mind is going to accord them the
>> status of a legal 'currency'. That power they will always prefer to
>> keep to themselves. ...
>
> Governments are not the only ones issuing currency. Private banks issue
> their own banknotes in Scotland and Northern Ireland:
> http://en.wikipedia.org/wiki/Banknotes_of_the_pound_sterling#Scotland_and_Northern_Ireland

Private banks have long played an important role in the issue of private 
currency.  However, when there's a run on them the whole system falls down.  
Government reserved to itself the power to issue "currency" partly to protect 
investors against failing banks.

I find the categorisation of Bitcoin as an asset a little odd. Barter systems 
typically rely on things of inherent use value. I'd be intrigued to know where 
they locate it - ie a number -  for tax purposes.


  

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