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There's a significant difference between Bitcoin and cash, which is that the worst-case scenario for loss of your cash is the government in control of it just p
by fixermark 8y ago
There's a significant difference between Bitcoin and cash, which is that the worst-case scenario for loss of your cash is the government in control of it just prints more and gives it to you (in effect, distributing the cost of your loss among everyone who holds that currency). This is not technically possible with Bitcoin, and AFAIK no system has grown up organically yet to provide some kind of "loss insurance" in the form of keeping some BTC in reserve for making victims whole.
- ravingraven 8y ago>This is not technically possible with Bitcoin [...] Of course, it is. The government could force everyone to send Bitcoins to a special account which is then distributed to victims (i.e. a tax). That would actually be better than what we have now. By printing more cash, people with cash are punished while actually rich people (who own stock, real estate, factories, jets etc.) are not.
- fixermark 8y agoBy "not technically possible," I meant specifically that no government can cause new BTC to manifest into existence. The scenario you're describing is (government mandated and legally enforced) loss insurance, which is the system I observed hasn't (to my knowledge) organically manifested yet.
- awrence 8y agoWhat you're describing is basically an insurance mechanism. There is no reason you couldn't implement the same for cryptos. But at least under that explicit framework, those who had not participated in that scheme would not have to pay the risk premium associated with it which is currently incurred by fiat holders whether they like it or not (under your scenario).