An American professor from the University of South Carolina and Bank of Canada consultant Warren Weber presented a comprehensive study of the reasoning behind the crypto currency.

In it, he considers the option of switching the world economy to bitcoin as the main currency. This will make the financial system more stable, deprive the national central banks and governments of instruments of influence on the economy. Therefore, they will resist fully the introduction of bitcoin-standard.

Weber compares bitcoin with the gold standard. Two main similarities are the lack of control by the authorities and a limited amount of gold and bitcoins.

Recall, the algorithm limits the number of bitcoins to 21 million "coins". If bitcoin becomes the world reserve currency, then on its basis central banks will be able to issue their fiat (not having their own value) money. Thus, the gold standard, which existed in the world financial system until the early 1970s, will return in essence.

The issue of fiat money will be one of the last possibilities of central banks to influence monetary policy. In this case, if bitcoin becomes the standard, then there will be a moderate increase in deflation.

But after reaching a certain level, its speed will be minimal. At the same time, the introduction of the new standard will not abolish the economic crises, they will still occur.

Weber believes that bitcoin can benefit the economy in two ways. The speed of production of new bitcoins can be considered deterministic, so predicting the price level will be much easier.

Another advantage is to free up investments that are sent for hedging to protect against currency fluctuations. With a standard based on bitokone, these funds can be sent in a more efficient direction.

But, perhaps, Weber's main conclusion is that such a bitcoin-standard is unlikely to appear, because central banks and governments will resist this with all their might.

With bitcoin-standard, they will not be able to influence the economy with interest rates, they will lose the ability to receive income from seignorage (income from the issue of money).

Losing these powers is painful, so for bitcoin as a standard, maximum obstacles will be created. Weber also lacks confidence in the durability of such a standard. It is likely that with the current pace of technology will appear more effective and cheaper in use currency.