4 ms·

Can someone enlighten me in what way disparate digital currencies, like EstCoin, UsCoin, SwissCoin, ChinaCoin, etc etc would be an improvement compared to statu

Can someone enlighten me in what way disparate digital currencies, like EstCoin, UsCoin, SwissCoin, ChinaCoin, etc etc would be an improvement compared to status quo?

diego_moita 9y ago
Trust. It is hard to sell a bread or chewing gum in a coin that you can't be sure will cost 10 times more tomorrow or will be worth nothing. This is why Steam and WrapBootstrap (among many others) gave up on Bitcoin. Most current currencies have this volatility and instability because: a) it is hard for them to technically adapt to scale (e.g: allowing more transactions, changing algorithms,...) b) the supply of money must respond to price oscillations. This is basic monetary policy and is how Central Banks assure that fiat currencies remain stable and reliable (well, at least is what they should do).
- mastax 9y ago
  So then what does UsCoin get you over USD?
  - diego_moita 9y ago
    I am not American and don't trust the American government to control my money or to keep it away from Putin or Bulgarian criminals, so it gains nothing. But if it was implemented by a reputable government that respects privacy and implements the convenience of most crypto-currencies than I would take it, for sure.
    - mastax 9y ago
      To ask more specifically: what benefit does a cryptocurrency give you if you still need to trust a central entity? Some guesses of mine: - Could be easier to trade than forex (though I don't think this is currently the case with crypto) - A centralized ledger may reduce the information that individual financial institutions need to store - Blockchains are generally tamper-resistant databases - Blockchain's may be easier to police for e.g. fraud As a consumer, most of those are 'not my problem'. What benefit do you anticipate?
  - krrrh 9y ago
    Imagine a single database controlled by the government that contained a record of every transaction every citizen or non-citizen made with the official state currency. Run a query with no warrants, and no subpoenas. Now imagine a boot stamping on a human face — forever.

Can someone enlighten me in what way disparate digital currencies, like EstCoin, UsCoin, SwissCoin, ChinaCoin, etc etc would be an improvement compared to status quo?

diego_moita 9y ago

Trust. It is hard to sell a bread or chewing gum in a coin that you can't be sure will cost 10 times more tomorrow or will be worth nothing. This is why Steam and WrapBootstrap (among many others) gave up on Bitcoin. Most current currencies have this volatility and instability because: a) it is hard for them to technically adapt to scale (e.g: allowing more transactions, changing algorithms,...) b) the supply of money must respond to price oscillations. This is basic monetary policy and is how Central Banks assure that fiat currencies remain stable and reliable (well, at least is what they should do).

mastax 9y ago
So then what does UsCoin get you over USD?
- diego_moita 9y ago
  I am not American and don't trust the American government to control my money or to keep it away from Putin or Bulgarian criminals, so it gains nothing. But if it was implemented by a reputable government that respects privacy and implements the convenience of most crypto-currencies than I would take it, for sure.
  - mastax 9y ago
    To ask more specifically: what benefit does a cryptocurrency give you if you still need to trust a central entity? Some guesses of mine: - Could be easier to trade than forex (though I don't think this is currently the case with crypto) - A centralized ledger may reduce the information that individual financial institutions need to store - Blockchains are generally tamper-resistant databases - Blockchain's may be easier to police for e.g. fraud As a consumer, most of those are 'not my problem'. What benefit do you anticipate?
- krrrh 9y ago
  Imagine a single database controlled by the government that contained a record of every transaction every citizen or non-citizen made with the official state currency. Run a query with no warrants, and no subpoenas. Now imagine a boot stamping on a human face — forever.