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The long-term value will be in the ability to send censorship-proof funds anywhere there's an internet connection. The Lightning Network (yet to be deployed in
by theseatoms 9y ago
The long-term value will be in the ability to send censorship-proof funds anywhere there's an internet connection. The Lightning Network (yet to be deployed in production) is supposedly going to reduce transaction fees and confirmation times.
>but isn't centralized wallets/exchanges like coinbase defeating the entire purpose of crypto currency
This is true. This is my biggest problem with the current ecosystem. If history is any guide, they'll eventually suffer from some sort of scandal and/or run that drives customers to a superior competitor. This only kicks the can, I realize, and is far from the original vision. But at least each centralized service learns from the costly mistakes of previous ones.
- schmidty 9y agoThere are 100 lightning nodes running in production currently.
- just_one_time_ 9y agoIt is not a usable system. If you think it is read up some more on the traveling salesman problem.
- theseatoms 9y agoI stand corrected.
- just_one_time_ 9y agoCoinbase is best thought of as an on ramp. Best case, one can deposit funds, trade to BTC and withdraw to a personal wallet in a matter of days. There is no reason to keep funds on a website and it is advised against in the community.
- phpnode 9y agoI see this argument about censorship resistance a lot but I don't really understand it. If the main purpose of the technology is to evade law enforcement is this not a massive reason for governments to ban cryptocurrencies? The user of the technology is presumably committing a crime.
- theseatoms 9y agoI'm certainly not an expert in this domain, but how exactly would a government ban bitcoin? Is it possible to do without banning the Internet? Governments can eliminate centralized services like Coinbase. But that only makes Bitcoin stronger as OP indicated.
- michaelt 9y agoYou can't 100% eliminate speeding or child poverty or drugs or car accidents or corruption or gambling or unsafe working conditions or prostitution - but that doesn't stop governments trying for a reduction.
- theseatoms 9y agoOh, I'm pretty sure that governments will try to ban bitcoin, given that it gets more traction as an actual medium of exchange. I'm trying to assess if they'll succeed, and if so, "how?"
- hndamien 9y agoBan Bitcoin, but leave the futures exchange and taxes. OK.
- skymt 9y agoStep 1: eliminate centralized services. This would only make Bitcoin stronger if it's already a functioning economy that doesn't depend on connections to the existing financial system. If you can't buy and sell Bitcoin with traditional currency, it becomes far less practical. Step 2: make use of Bitcoin illegal. You know, "ban" it. It's a plaintext P2P protocol, not exactly magic. If you control the network, you can identify Bitcoin nodes and charge their owners, exactly how law enforcement can enforce laws against other illicit P2P traffic. This would drive any remaining die-hard users to services like Tor. Step 3: if Bitcoin is somehow still popular enough to be considered a problem, block Tor.
- 9y ago
- slivym 9y agoI don't understand how this holds true though, because to actually send someone money you need to actually... get them the money. A great counter-example of this is that the exchanges in Zimbabwe were trading at a 100% premium when you actually wanted to settle a transaction in cash. So whilst you can transfer money censorship free, you and the recipient need to then handle the transfer into and out of crypto which seems to be in many cases more difficult than actually transferring money other ways. Not to mention the fact that that purpose is an astonishingly niche thing to want to do - at least in first world countries. Are you suggesting crypto has no long-term value in the west?
- theseatoms 9y agoDoes purchasing goods or services directly with bitcoin count as "handl[ing] the transfer into and out of crypto"? Doesn't "crypto" then simply become "money"? Don't get me wrong. That vision of the future isn't here yet. Far too few vendors accept bitcoin today for it to be a viable closed loop system.
- Daishiman 9y agoNobody's going to be using crypto for direct purchases when you still have to pay taxes in local currency and the friction to get cash from crypto is just as high as today's friction in interbanking transfers or worse.
- s73ver_ 9y ago"The long-term value will be in the ability to send censorship-proof funds anywhere there's an internet connection." So, how does this work if I'm, say, trying to support the protests in Iran, who just shuts the internet off?