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Exchange it for goods and services. What can you do with USD besides exchanging it for goods and services? (Pay taxes)

by cwkoss 6y ago

hannasanarion 6y ago
The USD (and more importantly, the banking system), also allows for efficient high-volume transfers, reversibility, ID verification, and fraud investigation. None of this is possible with blockchain, by design.
- cwkoss 6y ago
  I'd argue that USD in isolation doesn't support those use cases: the banking system does. There is no reason a parallel banking system with all of the same features cannot built with Bitcoin being used as the denomination. I think this future is increasing likely (probably much to the chagrin of decentralization advocates) as Bitcoin increases in value and number of holders. efficient high-volume transfers - risky and expensive to do with cash, really requires a hawala-like middleman (often a bank) reversibility - not true of cash, only true within the context of softer credit systems. You could build a "Venmo backed by Bitcoin" where funds cannot be withdrawn for the reversibility period if you thought there was market demand for it. ID verification - subject to discretion of counterparty fraud investigation - Bitcoin is likely much better than USD for this because of it's traceability.
- fredfoobar 6y ago
  You should tell that to Citibank then, poor guys can't get back their money they accidentally wired: https://www.cnn.com/2021/02/16/business/citibank-revlon-lawsuit-ruling/index.html https://www.cnn.com/2021/02/16/business/citibank-revlon-laws...
  - spiralx 6y ago
    Which is a case that made headlines because of how unusual it is for this money to not get returned - it relies on an ultra-specific set of circumstances and still could have been decided the other way.
imtringued 6y ago
The vast majority of services that allow you to pay with Bitcoin merely convert it back to your local currency. That's like saying you can pay with euros in the united states.

Exchange it for goods and services. What can you do with USD besides exchanging it for goods and services? (Pay taxes)

by cwkoss 6y ago

Exchange it for goods and services. What can you do with USD besides exchanging it for goods and services? (Pay taxes)

The USD (and more importantly, the banking system), also allows for efficient high-volume transfers, reversibility, ID verification, and fraud investigation. None of this is possible with blockchain, by design.

cwkoss 6y ago
I'd argue that USD in isolation doesn't support those use cases: the banking system does. There is no reason a parallel banking system with all of the same features cannot built with Bitcoin being used as the denomination. I think this future is increasing likely (probably much to the chagrin of decentralization advocates) as Bitcoin increases in value and number of holders. efficient high-volume transfers - risky and expensive to do with cash, really requires a hawala-like middleman (often a bank) reversibility - not true of cash, only true within the context of softer credit systems. You could build a "Venmo backed by Bitcoin" where funds cannot be withdrawn for the reversibility period if you thought there was market demand for it. ID verification - subject to discretion of counterparty fraud investigation - Bitcoin is likely much better than USD for this because of it's traceability.
fredfoobar 6y ago
You should tell that to Citibank then, poor guys can't get back their money they accidentally wired: https://www.cnn.com/2021/02/16/business/citibank-revlon-lawsuit-ruling/index.html https://www.cnn.com/2021/02/16/business/citibank-revlon-laws...
- spiralx 6y ago
  Which is a case that made headlines because of how unusual it is for this money to not get returned - it relies on an ultra-specific set of circumstances and still could have been decided the other way.

imtringued 6y ago

The vast majority of services that allow you to pay with Bitcoin merely convert it back to your local currency. That's like saying you can pay with euros in the united states.