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Bitcoin advocates have long suggested the virtual money would one day replace fiat currencies as a means of doing business That's not the case anymore either.

Bitcoin advocates have long suggested the virtual money would one day replace fiat currencies as a means of doing business That's not the case anymore either. We have few powerful miners than own more than 50%. Sure they separate entity per se, but if they talk and agree together, they can do whatever they want. They whole premise that crypto is free and decentralized and "banks cannot control it" is a good idea.. unless you quickly realize the flaw that biggest miners can get together and form a "crypto mob" if you will, and control currency future anyways.

lern_too_spel 8y ago
The whole system consists of flaws the authors would have forseen if they understood economic thinking. Instead, they pretended that all the tenets of economics magically go away if you apply a little cryptography. The flaw you're pointing out is that whoever has access to cheap electricity and scale will be able to control the system. There is not sufficient incentive for others to jump in to a money losing proposition.
- dnomad 8y ago
  I propose Bitcoin and most other extra-legal (ie non state supported) currencies are going to zero. That said we can be grateful that the experiment was done and data was gained.
BonesJustice 8y ago
Over time, power always consolidates amongst a privileged few. That’s pretty much a universal constant. It doesn’t really matter what the unit of power is, be it dollars, hash rate, or political capital.
- glup 8y ago
  Unless the privileged few choose to build institutions to limit the accumulation of capital or power, e.g. https://en.wikipedia.org/wiki/Fabian_Society https://en.wikipedia.org/wiki/Fabian_Society. To call it a universal constant is a convenient abdication of responsibility.
  - cortesoft 8y ago
    Right, but that group was formed well over 100 years ago, and power and wealth has still concentrated. The argument isn’t that every person will try to accumulate power, but that it will be accumulated by some group.

lern_too_spel 8y ago

The whole system consists of flaws the authors would have forseen if they understood economic thinking. Instead, they pretended that all the tenets of economics magically go away if you apply a little cryptography. The flaw you're pointing out is that whoever has access to cheap electricity and scale will be able to control the system. There is not sufficient incentive for others to jump in to a money losing proposition.

dnomad 8y ago
I propose Bitcoin and most other extra-legal (ie non state supported) currencies are going to zero. That said we can be grateful that the experiment was done and data was gained.

BonesJustice 8y ago

Over time, power always consolidates amongst a privileged few. That’s pretty much a universal constant. It doesn’t really matter what the unit of power is, be it dollars, hash rate, or political capital.

glup 8y ago
Unless the privileged few choose to build institutions to limit the accumulation of capital or power, e.g. https://en.wikipedia.org/wiki/Fabian_Society https://en.wikipedia.org/wiki/Fabian_Society. To call it a universal constant is a convenient abdication of responsibility.
- cortesoft 8y ago
  Right, but that group was formed well over 100 years ago, and power and wealth has still concentrated. The argument isn’t that every person will try to accumulate power, but that it will be accumulated by some group.