3 ms·
You are correct that the activity that led to all financial crises will not be mitigated in the domain of national currencies. It will be avoided in decentrali
by buckthundaz 9y ago
You are correct that the activity that led to all financial crises will not be mitigated in the domain of national currencies. It will be avoided in decentralized money that is uncorrelated, like gold.
Your concept of decentralization is off. The purpose of it is this: How many points of failure are there? How many of these points can break before the cards all fall? If this happens, who pays for it?
This illustrates that the USD is not decentralized.
Cryptocurrency is an exit from this, much like gold or real estate or other investment vehicles. Cryptocurrency is available to anyone with a phone and internet access -- that cannot be said for any other investment vehicle.
This will take the wind out of the sails of financial institutions as there is another option for people.
- shawn 9y agoPossibly, but the space requirements for crypto shouldn't be underestimated. I think Satoshi kept 1MB blocks because he realized it would quickly become untenable for most people to run full nodes. ETH has similar problems. What does the end game for this situation look like? Will people just create Bitcoin Zero, which is identical to Bitcoin but preallocates the existing coins starting from the genesis block? (A manual GC, as it were.) Otherwise it seems like crypto will be around 100 years from now, but probably not BTC. At least not in a form where non-miners can participate.
- jhwang5 9y agoSwitching to cryptocurrency actually makes the problems worse, because instead of regulated entities calling the shots, we have an oligarchy of ASIC-armed miners calling the shots. Between the two evils, any sane person would rather trust a regulated business than some folks who prefer to hide in the shadows.