3 ms·

"Instant." I just need to wait for the transaction to be finalized in a block, and then wait for enough blocks to be reasonably sure there isn't a longer chain

"Instant." I just need to wait for the transaction to be finalized in a block, and then wait for enough blocks to be reasonably sure there isn't a longer chain elsewhere. I'm sure that won't take any time at all. /s Don't forget there is still counter-party risk on the side that is sending Bitcoin in exchange for goods as well.

pmorici 11y ago
You illustrate the misunderstanding a lot of people have. You are conflating the completion of payment between end users with the settlement. In Bitcoin they are one in the same. The issue is not whether the payment takes 1 minute or 20 minutes to complete it is whether settlement is incidental to the payment or deferred. Deferred settlement creates credit risk. The issue of risk of non delivery of goods is one that is a insurance service someone provides on top of a payment system and isn't particularly relevant to this discussion. Physical exchange of cash and Bitcoin are the only two payment systems that I've ever heard of that don't have counter party credit risk in some form.
- joosters 11y ago
  The OP is pointing out that bitcoin can take hours for your transaction to be included in a block. So it's far from 'instant' payment or settlement. You then have to wait for several block confirmations to be sure that your transfer took place. Currently, people are reporting three or more hours wait to get a transaction on to the blockchain, because bit-coin has a capacity problem.
- ryanjshaw 11y ago
  Cryptocurrencies reduce (but hardly eliminate) counterparty risk in exchange for an increase in systemic and personal risk. The dominant financial markets have exhibited a preference for reducing systemic risk over other forms of risk. I tend to think they have made the right trade-off. I have not seen a convincing argument for the alternative.

3 ms·

"Instant." I just need to wait for the transaction to be finalized in a block, and then wait for enough blocks to be reasonably sure there isn't a longer chain

by thinkmoore 11y ago

pmorici 11y ago
You illustrate the misunderstanding a lot of people have. You are conflating the completion of payment between end users with the settlement. In Bitcoin they are one in the same. The issue is not whether the payment takes 1 minute or 20 minutes to complete it is whether settlement is incidental to the payment or deferred. Deferred settlement creates credit risk. The issue of risk of non delivery of goods is one that is a insurance service someone provides on top of a payment system and isn't particularly relevant to this discussion. Physical exchange of cash and Bitcoin are the only two payment systems that I've ever heard of that don't have counter party credit risk in some form.
- joosters 11y ago
  The OP is pointing out that bitcoin can take hours for your transaction to be included in a block. So it's far from 'instant' payment or settlement. You then have to wait for several block confirmations to be sure that your transfer took place. Currently, people are reporting three or more hours wait to get a transaction on to the blockchain, because bit-coin has a capacity problem.
- ryanjshaw 11y ago
  Cryptocurrencies reduce (but hardly eliminate) counterparty risk in exchange for an increase in systemic and personal risk. The dominant financial markets have exhibited a preference for reducing systemic risk over other forms of risk. I tend to think they have made the right trade-off. I have not seen a convincing argument for the alternative.