The Federal Reserve Publishes Another Paper on Bitcoin

By  Carlo Caraluzzo

The Federal Reserve Bank in Washington, D.C. has issued a report entitled Bitcoin: Technical Background and Data Analysis. The recently released report, dated October 7, is a technical analysis of Bitcoin and the Bitcoin protocol. While mostly accurate, it contains a number of assumptions and self-serving statements suggesting that, despite a great deal of empirical research and terabytes of data, the Federal Reserve lacks a fundamental understanding of Bitcoin.

Lack of Understanding

One of the first indications of their lack of understanding can be found in section two, entitled “Bitcoin: an Overview,” by researchers Anton Badev and Matthew Chen. In defining Bitcoin, they say:

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