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Well if it’s on a publicly available blockchain, the difference is that the information on how much money is in circulation, how much is being created, is all o

Well if it’s on a publicly available blockchain, the difference is that the information on how much money is in circulation, how much is being created, is all open to the public and verifiable. The information on how much banks are holding onto in fractional reserves should therefore be available and make cooking the books more difficult and allowing audits to be more accurate and hopefully regulations could exist to keep banks better in check.

jeromegv 7y ago
Why is it so hard to audit those bitcoin exchanges then?
- ISL 7y ago
  A public blockchain is straightforward to audit. It is the documentation internal to an exchange which can be opaque. If trading is done off-chain, or transactions are made between currencies, those are not a part of the blockchain. For bitcoin-only transactions between wallets, no exchange is required.
buttcoinslol 7y ago
> Well if it’s on a publicly available blockchain, the difference is that the information on how much money is in circulation, how much is being created, is all open to the public and verifiable. This information is available to the public about the USD supply as well: https://fred.stlouisfed.org/categories/24 https://fred.stlouisfed.org/categories/24 > The information on how much banks are holding onto in fractional reserves should therefore be available and make cooking the books more difficult and allowing audits to be more accurate and hopefully regulations could exist to keep banks better in check. You should look into just how much regulation there is in banking, and the history of banking itself. All publicly traded banks are audited yearly, and yes I am aware of Enron/Arthur Andersen and the GFC of 07/08, among others. No system is infallible, but investors trust US audited company statements 100x more than chinese audited companies, for instance.

jeromegv 7y ago

Why is it so hard to audit those bitcoin exchanges then?

ISL 7y ago
A public blockchain is straightforward to audit. It is the documentation internal to an exchange which can be opaque. If trading is done off-chain, or transactions are made between currencies, those are not a part of the blockchain. For bitcoin-only transactions between wallets, no exchange is required.

buttcoinslol 7y ago

> Well if it’s on a publicly available blockchain, the difference is that the information on how much money is in circulation, how much is being created, is all open to the public and verifiable. This information is available to the public about the USD supply as well: https://fred.stlouisfed.org/categories/24 https://fred.stlouisfed.org/categories/24 > The information on how much banks are holding onto in fractional reserves should therefore be available and make cooking the books more difficult and allowing audits to be more accurate and hopefully regulations could exist to keep banks better in check. You should look into just how much regulation there is in banking, and the history of banking itself. All publicly traded banks are audited yearly, and yes I am aware of Enron/Arthur Andersen and the GFC of 07/08, among others. No system is infallible, but investors trust US audited company statements 100x more than chinese audited companies, for instance.