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The ultimate use case is control and tracking beyond any form created thus far. Paper currency that may be in your pocket has serial numbers printed on it. Tho
by miscreanity 9y ago
The ultimate use case is control and tracking beyond any form created thus far.
Paper currency that may be in your pocket has serial numbers printed on it. Those numbers cannot be readily associated with an individual. Bitcoin and all other blockchain systems can be connected to a user directly or through alternative methods. This is ideal for government and is the direction most are taking - control over blockchain systems and therefore control over the system's users.
Pointing to credit or debit cards is a poor comparison since those require significant hurdles for participation. Cryptocurrency requires only a smartphone or some kind of computer and a rudimentary internet connection. The infrastructure for the entire system is already in place, unlike growth of the early internet needing computers and modems. Transactions work now and have been for years; higher level functions such as decentralized exchanges, asset registration and such are gradually being tested and implemented.
Meanwhile, users are voluntarily joining. Government needs do little other than take some corrective actions and dictate rules for usage of cryptocurrency that can be enforced within borders. It's a control-freak's dream come true.
- v64 9y agoThis is a great point that I don't see a lot of people making. The US government would love nothing more than having a USDCoin that allows them to see exactly how money flows from person to person and institution to institution, as well as having a way to revoke your coins at will. The draconian implications of this technology, like many others, concern me greatly. Thanks for providing this perspective.
- miscreanity 9y agoI would argue that Bitcoin is the coin, not a national cryptocoin. Russia world not trust a US coin, the US would not want to use a Chinese coin, etc. Bitcoin is effectively neutral territory but is effectively controlled through centralized mining operations that can certainly be collectively monopolized by the largest sovereign nations. It would be the modern version of mutually assured destruction. Bitcoin is already a reserve currency in crypto thanks to longevity and stability of the protocol. Another may become the primary transactional currency and there may well be national variants for local trade, but reserve is effectively established.
- tehlike 9y agoNot if you use coins like monero, zcash and thr likes.
- miscreanity 9y agoI don't have the link offhand but all privacy coins can be unmasked by large enough organizations. Monero is currently the most resilient to direct analysis. Keep in mind that enough data points from outside the system can be used to associate an identity with an address.