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Which country is that supposed to be? "However, the rest are long term scammers who build up reputation and than cheat over us." Well you have that in the res

by dualogy 16y ago

Which country is that supposed to be? "However, the rest are long term scammers who build up reputation and than cheat over us." Well you have that in the rest of the world too -- only they go by nobler-sounding titles of government agents, bureaucrats, commissioners... "Reputation is VERY IMPORTANT in an economy with no court and police." What's the problem here -- reputation can be earned, through quality, and should. The stronger it is, the less it can be shattered by drive-by morons who haven't built it for themselves yet (and if they had, they wouldn't need to). "They also cause bank runs as people transfer their worthless money into something more valuable." The corrective invisible hand at work, it sounds to me. Again, what's the issue? "Contracts are entirely based on reputation and trust. Nobody want to go to a state court and waste lot of money on lawyer." I think the western world will be moving to that direction as public services keep increasing prices and decreasing quality, as every coercive monopoly must, especially a high-deficit one. Contracts in the end are always primarily based on reputation and trust, aren't they? And shouldn't they?

kiba 16y ago
Which country is that supposed to be? There is no country in the world that is at the very least quasi-anarcho-capitalist. This economy deal entirely on the internet and with bitcoins as its currency. I think the western world will be moving to that direction as public services keep increasing prices and decreasing quality, as every coercive monopoly must, especially a high-deficit one. Contracts in the end are always primarily based on reputation and trust, aren't they? And shouldn't they? Keep in mind, these are lessons, not a critique. I am not criticizing the reputation based nature of a cryptoeconomy. Rather it is lessons in how the cryptoeconomy really works.
- dualogy 16y ago
  This is pretty interesting. Do they ever convert BitCoins back to fiat money or precious metals at some point? Well I guess I can research this myself, I did come across BitCoins before. Fancy idea of backing currency by CPU power rather than a tangible, durable, universally accepted store-of-value but it's a step forward from fiat currency that is backed by the decree of Heli Ben and the gunned power of a state to tax future production... I did not mean to imply you were criticizing. Your lessons are valid examples of a quasi-anarchic situation. People policing themselves, organizing networks of trust and reputation and self-protection. Sounds like there is a market in there for mutually-trusted middlemen acting as, well, "trustees" or escrow services? Or is that built into BitCoin already. Of course if the scam only materializes after the transaction was already completed to mutual consent, that's a different matter. But what kinds of fraud are happening there?
  - kiba 16y ago
    This is pretty interesting. Do they ever convert BitCoins back to fiat money or precious metals at some point? Well I guess I can research this myself, I did come across BitCoins before. Fancy idea of backing currency by CPU power rather than a tangible, durable, universally accepted store-of-value but it's a step forward from fiat currency that is backed by the decree of Heli Ben and the gunned power of a state to tax future production... The notion of bitcoin being backed by CPU mining or even GPU mining is a fallacious notion. CPU and GPU are used to mine bitcoins and create bitcoin blocks, nothing more. Every currency will probably have an exchange market. Bitcoin is no different. People have brought pecious metals with bitcoins, as well USD. However, USD are usually prefixed with a service such as Paypal USD and MtGox USD, and so on because of additional monetary property that the service provider imbues to it. Thus, Paypal accounts are considered risky because of chargeback. Sounds like there is a market in there for mutually-trusted middlemen acting as, well, "trustees" or escrow services? Or is that built into BitCoin already. Of course if the scam only materializes after the transaction was already completed to mutual consent, that's a different matter. But what kinds of fraud are happening there? The trust network is mostly around the bitcoin forum. There has been talk of creating reputation systems of some kind but nothing of substance come out yet. Most frauds are usually the drive-by scams type of frauds. However, the other concerns is when escrow failed to do their job or simply disappear. There may be no intent of fraud involved, but people lose their money all the same.

by dualogy 16y ago

kiba 16y ago

Which country is that supposed to be? There is no country in the world that is at the very least quasi-anarcho-capitalist. This economy deal entirely on the internet and with bitcoins as its currency. I think the western world will be moving to that direction as public services keep increasing prices and decreasing quality, as every coercive monopoly must, especially a high-deficit one. Contracts in the end are always primarily based on reputation and trust, aren't they? And shouldn't they? Keep in mind, these are lessons, not a critique. I am not criticizing the reputation based nature of a cryptoeconomy. Rather it is lessons in how the cryptoeconomy really works.

dualogy 16y ago
This is pretty interesting. Do they ever convert BitCoins back to fiat money or precious metals at some point? Well I guess I can research this myself, I did come across BitCoins before. Fancy idea of backing currency by CPU power rather than a tangible, durable, universally accepted store-of-value but it's a step forward from fiat currency that is backed by the decree of Heli Ben and the gunned power of a state to tax future production... I did not mean to imply you were criticizing. Your lessons are valid examples of a quasi-anarchic situation. People policing themselves, organizing networks of trust and reputation and self-protection. Sounds like there is a market in there for mutually-trusted middlemen acting as, well, "trustees" or escrow services? Or is that built into BitCoin already. Of course if the scam only materializes after the transaction was already completed to mutual consent, that's a different matter. But what kinds of fraud are happening there?
- kiba 16y ago
  This is pretty interesting. Do they ever convert BitCoins back to fiat money or precious metals at some point? Well I guess I can research this myself, I did come across BitCoins before. Fancy idea of backing currency by CPU power rather than a tangible, durable, universally accepted store-of-value but it's a step forward from fiat currency that is backed by the decree of Heli Ben and the gunned power of a state to tax future production... The notion of bitcoin being backed by CPU mining or even GPU mining is a fallacious notion. CPU and GPU are used to mine bitcoins and create bitcoin blocks, nothing more. Every currency will probably have an exchange market. Bitcoin is no different. People have brought pecious metals with bitcoins, as well USD. However, USD are usually prefixed with a service such as Paypal USD and MtGox USD, and so on because of additional monetary property that the service provider imbues to it. Thus, Paypal accounts are considered risky because of chargeback. Sounds like there is a market in there for mutually-trusted middlemen acting as, well, "trustees" or escrow services? Or is that built into BitCoin already. Of course if the scam only materializes after the transaction was already completed to mutual consent, that's a different matter. But what kinds of fraud are happening there? The trust network is mostly around the bitcoin forum. There has been talk of creating reputation systems of some kind but nothing of substance come out yet. Most frauds are usually the drive-by scams type of frauds. However, the other concerns is when escrow failed to do their job or simply disappear. There may be no intent of fraud involved, but people lose their money all the same.