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It may be arrogant sounding, but it’s not stupid. It is in the financial interest of Bitcoin holders to talk up Bitcoin and defend it to the death. The senior
by zepto 5y ago
It may be arrogant sounding, but it’s not stupid. It is in the financial interest of Bitcoin holders to talk up Bitcoin and defend it to the death.
The senior management of regular banks in many countries are often required by law to deny that the bank is in jeopardy right up until the moment they close the doors, as a way to prevent bank runs.
Because crypto is distributed, every holder is a bank manager, and must deny or minimize problems with the currency in order to maintain sentiment and prevent runs.
This for me is one of the biggest problems with Bitcoin - it incentivizes the holders to become engines of disinformation.
- stephc_int13 5y agoWhat would happen if a significant fraction of the population was holding crypto?
- zepto 5y agoDepends on the currency. Not all crypto is the same as Bitcoin. I’m pretty positive about cryptocurrency in the long term, once we have a design that incentivizes positive externalities. Seems like if a large part of the population of the US held Bitcoin, and 51% of the hash power remains in China, there will be some nasty geopolitical consequences.
- inter_netuser 5y agoLuckily, it's ledger is open for everyone to see, unlike banks' ledgers.
- zepto 5y agoUnfortunately that is irrelevant to preventing runs.
- inter_netuser 5y agoruns on bitcoin?
- zepto 5y agoYes.