It was in the media recently that an entity is trying to set up a Bitcoin bitcoin nonsense in Jamaica. I am astounded that any Jamaican authority would even shake hands with any proposer of this idiocy.
Cash Plus — flawed as it was — had more merits than Bitcoin. And the fact that Bitcoin is being recognised is a reflection of the intellectual inadequacies that now rule countries and the globe. It is currency plain and simple. Any country that allows a private citizen to create currency has lost its mind. What will the authorities do when Mary Jane decides to reintroduce shark teeth as currency?
Will the authority say that Bitcoin is computer-generated so therefore it has validity? The issuing of currency is and ought to remain the sole prerogative of one central authority. Money supply must be heavily regulated and tightly controlled. Money is a medium of exchange used to circulate goods and services.
Money has to be in proper proportions to the amount of goods and services that is to be circulated. If there is more money than goods and services hyperinflation can occur. But it is significant to note that if an oversupply of money does not cause inflation it can nevertheless blow up the economy. It was an oversupply of money caused by the then Government’s unrelenting tax cuts, and its refusal to spend, which led to the blowing up of the American economy and that of the globe in 1929. 2 trillion of tax cuts in 2003. In short, money can be too much!
And when any Tom, Dick or Harriet is allowed to create currency that is a recipe for financial and economic madness! A spin-off of Bitcoin is Caricoin. The report stated that Caricoin has a development office in Kingston and a spokesperson for Caricoin said: “It is focused on delivering a secure, user-friendly, and less costly way of storing wealth and moving it around. This is 1636 all over again and the tulip bulbs are coming. Soon it will be tulip mania once more. Such thinking must be killed in its infancy! Governments need to understand where they can allow innovation and where no innovation should be permitted when dealing with money.