4 ms·

If the BitCoin economy is mostly only applicable to libertarians, it won't be all that large.

by jeromec 15y ago

euccastro 15y ago
I'm not a libertarian, yet I like BitCoin better than fiat currencies and centrally manipulated monetary systems. If other people are happy with whatever features of BitCoin remain under centralized control, more power to them. I see no problem. But you're saying we have to fear that someone will start effectively issuing p2p dollars. I think it kind of defeats the purpose, but I can't see why that's a more of a threat to the principles of Bitcoin than plain old USD.
- jeromec 15y ago
  Because of loss of value. Without backing there would be nothing guaranteeing the BitCoins in your wallet would hold close to the same purchasing power from before the time the network split.
  - euccastro 15y ago
    It would not be so much a network split as a network copy. Every user of the original network would have, to begin with, identical balances in both. Until inflation adjusted things, there would be an ephemeral increase in purchasing power. If the new network implemented inflationary logic, as a modern state is wont to do, I can't exactly see people rushing to convert their old (relatively stable, perhaps deflationary) money to the new one. Therefore, I can't see many businesses stopping to accept the old bitcoin. And after whatever adjustments are made, it will be business as usual. Bitcoin will remain the network for people that want a decentralized currency. Not necessarily of libertarians, but of anyone with distrust or disillusion with their governments and the banking system. Which I don't think is such a small demographic.
    - jeromec 15y ago
      I can't exactly see people rushing to convert their old (relatively stable, perhaps deflationary) money to the new one. Therefore, I can't see many businesses stopping to accept the old bitcoin. Rushing to convert "old network" BitCoins into the new network (or dollars, or whatever), and businesses stopping acceptance of them is exactly what will happen. Don't forget the primary function of money is to allow people to trade it for things they want. Unless you're a staunch ideological libertarian you will want as much of your "money" as you can get in whatever system offers the most goods and services. Otherwise you have lost value. That system will certainly not be the one containing only sparsely geographically spaced libertarians.

If the BitCoin economy is mostly only applicable to libertarians, it won't be all that large.

by jeromec 15y ago

If the BitCoin economy is mostly only applicable to libertarians, it won't be all that large.

I'm not a libertarian, yet I like BitCoin better than fiat currencies and centrally manipulated monetary systems. If other people are happy with whatever features of BitCoin remain under centralized control, more power to them. I see no problem. But you're saying we have to fear that someone will start effectively issuing p2p dollars. I think it kind of defeats the purpose, but I can't see why that's a more of a threat to the principles of Bitcoin than plain old USD.

jeromec 15y ago
Because of loss of value. Without backing there would be nothing guaranteeing the BitCoins in your wallet would hold close to the same purchasing power from before the time the network split.
- euccastro 15y ago
  It would not be so much a network split as a network copy. Every user of the original network would have, to begin with, identical balances in both. Until inflation adjusted things, there would be an ephemeral increase in purchasing power. If the new network implemented inflationary logic, as a modern state is wont to do, I can't exactly see people rushing to convert their old (relatively stable, perhaps deflationary) money to the new one. Therefore, I can't see many businesses stopping to accept the old bitcoin. And after whatever adjustments are made, it will be business as usual. Bitcoin will remain the network for people that want a decentralized currency. Not necessarily of libertarians, but of anyone with distrust or disillusion with their governments and the banking system. Which I don't think is such a small demographic.
  - jeromec 15y ago
    I can't exactly see people rushing to convert their old (relatively stable, perhaps deflationary) money to the new one. Therefore, I can't see many businesses stopping to accept the old bitcoin. Rushing to convert "old network" BitCoins into the new network (or dollars, or whatever), and businesses stopping acceptance of them is exactly what will happen. Don't forget the primary function of money is to allow people to trade it for things they want. Unless you're a staunch ideological libertarian you will want as much of your "money" as you can get in whatever system offers the most goods and services. Otherwise you have lost value. That system will certainly not be the one containing only sparsely geographically spaced libertarians.