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1. Which single entity is this paragraph referring to?

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Added on  2020-11-30

1. Which single entity is this paragraph referring to?

   Added on 2020-11-30

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1. Which single entity is this paragraph referring to? Which are the intermediaries? The paragraph is referring to central bank as the single entity, since is the one in charge of printing money. Therefore, the paragraph is criticising the central bank for creating the economic instabilities of history, such as when hyperinflation was created in Germany after WWI. Furthermore, it refers to the fact that the central bank buys bonds from the government (intermediary) in order to create money. 2. To what extent can the current bitcoin system be referred to as truly decentralized andfree of intermediaries? When Bitcoin became famous or known in society, what surprised people was the fact that it is a decentralized currency, which has no central control, no central repository of information, no central management, and no central point of failure. However, some people think that bitcoin is still centralized, although it is out of the powers of central banks and governments. This is because, they are still created by certain people, in certain places, with specific computers. Furthermore, you need to use Coin Base to buy and store bitcoins.However, bitcoin is truly decentralized because unlike dollars or any other state currency, you can create money. If you create euros in your house, you will face legal liability, but this would not be the case with bitcoins. Furthermore, yes a bitcoin exchange or web wallet is centralized, but you can also trade coins with friends directly over the block chain, without the approval of third parties.3. Which parties in the bitcoin community are having diverging views over the future ofthe cryptocurrency? In which aspect in particular they have colliding views? There has been different views between the miners of bitcoin, which create the bitcoins and the users. This is because one of the main principles of bitcoin is that it is the limitation in the number of bitcoins, in order to stop inflation from happening. In this case, users want no more bitcoins to be produced, while, miners want more bitcoins to be created.4. What motivation these parties may have for their particular view on the future of bitcoin? So miners, corporations and intermediaries want the creation of more bitcoins since they can profit from it. While some users of bitcoin are contrary to the views of miners because they invested in bitcoin around the idea that it was going to be a currency with completely different characteristics to those of states, such as the dollar. Therefore, their views go against those of the miners.5. What feature the bitcoin system lacks (but current financial system indeed has) that could be critical in managing convertibility (liquidity) of the bitcoin in situations of distress?Bitcoin lacks of acceptance by citizens in day-to-day transactions. This is principally because the value of bitcoin is very unstable and therefore most of the people is not willing to risk their money.
1. Which single entity is this paragraph referring to?_1

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