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For me the real benefit of bitcoin is how easy it makes it to send money on the internet. If society at large treated bitcoin like a currency (i.e. suitable for

For me the real benefit of bitcoin is how easy it makes it to send money on the internet. If society at large treated bitcoin like a currency (i.e. suitable for settling all debts, whether public or private), the ease with which it can be sent online without intermediaries, anywhere in the world is what's really great about it. Internet money, true international internet money. That's what I like about it. If you just ever care about USD and everything you do in your life is in USD and you live in the US, there's little value in bitcoins. When I got started getting paid for IRC math tutoring, from people I had never met, whose identity I didn't know and didn't care about, but who could send me money if I just gave them a bitcoin address; that's when I really started to like bitcoins. I think bitcoin's utility is a separate question from regulations and taxes. Unlike most other bitcoin proponents, I like regulations and taxes, and I would be happy for whatever laws society thinks we need around bitcoins. I've paid sales tax with bitcoins when I've bought stuff with bitcoins from online retailers who accept them. The problem I have with banks is that I just think that they are awfully inefficient. Their security features are awfully inconvenient and theatrical. I mean stuff like password requirements and website design, not stuff like being able to roll back incorrect or fraudulent transactions (which, btw, didn't work for me; the one time I had my debit card skimmed the bank didn't do me a whit of good in getting my money back). Sending Bitcoins is as easy as sending email. Some banks in parts of the world let you do almost that, but it's just not as easy and convenient, and it's certainly not international.

rubatuga 9y ago
Wait? Inefficient? But how about the millions of dollars spent on electricity to mine bitcoins? I’m sure you could reach a level of trust at a fraction of that cost!
- lapphi 9y ago
  At least it's nonviolent, compared to some fiat currencies.
_nalply 9y ago
It's illuminative that you didn't mention the trustlessness of blockchain. After all that was the original idea: Anybody can verify transactions without asking a central authority. But this is mostly not happening. Why? It's too difficult. To really trust blockchain on your own you have to understand game theory, cryptography and networks. You have to read source code and compile your clients yourself. Almost nobody does that. So what's the point? People are mostly in it for gambling or because they don't have a choice, for example illegal transactions. A honest answer whether they trust bitcoin would be a resounding no! And the banks? They see a way to reduce costs. Then the customers will trust the bank telling them to use it (or not). It's quite a perversion. I predict: Blockchain will succeed not because of its trustless nature but because it helps reducing transaction costs. Poor Satoshi Nakamoto would roll over in his grave (if he is dead).

rubatuga 9y ago

Wait? Inefficient? But how about the millions of dollars spent on electricity to mine bitcoins? I’m sure you could reach a level of trust at a fraction of that cost!

lapphi 9y ago
At least it's nonviolent, compared to some fiat currencies.

_nalply 9y ago

It's illuminative that you didn't mention the trustlessness of blockchain. After all that was the original idea: Anybody can verify transactions without asking a central authority. But this is mostly not happening. Why? It's too difficult. To really trust blockchain on your own you have to understand game theory, cryptography and networks. You have to read source code and compile your clients yourself. Almost nobody does that. So what's the point? People are mostly in it for gambling or because they don't have a choice, for example illegal transactions. A honest answer whether they trust bitcoin would be a resounding no! And the banks? They see a way to reduce costs. Then the customers will trust the bank telling them to use it (or not). It's quite a perversion. I predict: Blockchain will succeed not because of its trustless nature but because it helps reducing transaction costs. Poor Satoshi Nakamoto would roll over in his grave (if he is dead).