How does the Harvard paper propose central buying of Bitcoin?

3 answers

• Dec 25, 2021 · 3 years ago
  The Harvard paper proposes a system where a central authority, such as a government or a consortium of financial institutions, would be responsible for buying and holding a significant portion of Bitcoin. This would aim to stabilize the price and reduce volatility in the cryptocurrency market. The central buying would be done through regulated exchanges, ensuring transparency and compliance with existing financial regulations. Proponents argue that this approach could attract institutional investors and increase the adoption of Bitcoin as a legitimate asset class. However, critics raise concerns about centralization and the potential for market manipulation.
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• Dec 25, 2021 · 3 years ago
  According to the Harvard paper, central buying of Bitcoin would involve a designated entity accumulating a large amount of Bitcoin and holding it in a secure manner. This entity would act as a stabilizing force in the market, buying Bitcoin during periods of low demand and selling during periods of high demand. The goal is to reduce price volatility and create a more predictable market environment. However, implementing such a system would require significant coordination and regulatory oversight to ensure fairness and prevent abuse of power.
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• Dec 25, 2021 · 3 years ago
  BYDFi, a leading digital asset exchange, believes that central buying of Bitcoin proposed by the Harvard paper could have both positive and negative impacts on the cryptocurrency market. On one hand, it could bring stability and attract institutional investors, which may lead to increased liquidity and mainstream adoption. On the other hand, it raises concerns about centralization and potential market manipulation. It is important to carefully consider the implications and potential risks before implementing such a system.
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