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Distributed consensus eliminates a whole host of problems associated with centralized middlemen. For example, with Bitcoin the rules of the system are transpar

by lowkey 5y ago

Distributed consensus eliminates a whole host of problems associated with centralized middlemen. For example, with Bitcoin the rules of the system are transparent to all participants and cannot be changed by any single party. 21 million coins is the limit and the emission rate is fixed. With traditional fiat, no one can promise or predict the supply or debasement rate this year, next year or ten years from now.

lottin 5y ago
> Distributed consensus eliminates a whole host of problems associated with centralized middlemen. Which ones? > With traditional fiat, no one can promise or predict the supply or debasement rate this year, next year or ten years from now. Nobody wants to predict the supply. What people want to predict is the inflation rate, and the inflation rate is only predictable when you have a central bank.
- lowkey 5y ago
  My comment provided the first example (currency supply and debasement rate) but you then go on to claim that nobody wants those things. I want those things as do others so objectively your claim is false. Also your claim that inflation rate is only predictable when you have a central bank is just plain silly. It makes no sense.
  - lottin 5y ago
    You said there are a "whole host of problems associated with centralized middlemen" but the only "problem" you mention is the unpredictability of the money supply in fiat currencies, which, leaving aside whether it's even a problem, it certainly isn't representative of a set of problems "associated with centralized middlemen". And the claim that the inflation rate is unpredictable in the absence of an adaptive monetary policy is not controversial among economists, as far as I know. If you think such a claim is "plain silly" and that it "makes no sense" maybe you need to explain why.
    - lowkey 5y ago
      I’ll stick to the problems that Bitcoin solves as I know that space better than Ethereum. Bitcoin solves a whole host of problems: - hard currency with fixed supply that cannot be inflated by any individual no matter how powerful - fixed emission (debasement) rate that can be calculated for the next 100 years and beyond - the ability to self-custody a digital store of value (no KYC required) the owner of the private key is the owner, no questions asked - censorship-resistant payments that know no borders and are not subject to political whims of a particular country - runs on proof-of-work rather than proof-of-violence such as the US dollar which requires the backing of the most powerful military-industrial complex known to man to protect it’s value. By contrast Bitcoin currently consumes less than half the electricity of YouTube to secure and protect over half a trillion dollars. - it works 24/7 and never takes a bank holiday - it is designed from the ground up to withstand direct attacks from nation-states without a standing army ready to go to war to protect it. - It allows us to achieve Distribute Consensus without a central party (Rules without Rulers) I could go on but I trust I’ve made my point.
      - lottin 5y ago
        IIRC, the question was what problems does distributed consensus solve.
        lowkey 5y ago
        Per my comment above, every single point addresses the question of what problem distributed consensus solves as none of these points are possible without distributed consensus. Bitcoin was used for the examples as it and the Blockchain it is built upon are the original distributed consensus protocol. I suspect you already knew that but may be having difficulty admitting that I have made my case and that your position might be wrong.
        lottin 5y ago
        No, none of the points addresses the question. How is > it works 24/7 and never takes a bank holiday a problem? That's not a problem. That's a feature of some system. And what "distributed consensus" has to do with it is even more mysterious.

by lowkey 5y ago

lottin 5y ago

> Distributed consensus eliminates a whole host of problems associated with centralized middlemen. Which ones? > With traditional fiat, no one can promise or predict the supply or debasement rate this year, next year or ten years from now. Nobody wants to predict the supply. What people want to predict is the inflation rate, and the inflation rate is only predictable when you have a central bank.

lowkey 5y ago
My comment provided the first example (currency supply and debasement rate) but you then go on to claim that nobody wants those things. I want those things as do others so objectively your claim is false. Also your claim that inflation rate is only predictable when you have a central bank is just plain silly. It makes no sense.
- lottin 5y ago
  You said there are a "whole host of problems associated with centralized middlemen" but the only "problem" you mention is the unpredictability of the money supply in fiat currencies, which, leaving aside whether it's even a problem, it certainly isn't representative of a set of problems "associated with centralized middlemen". And the claim that the inflation rate is unpredictable in the absence of an adaptive monetary policy is not controversial among economists, as far as I know. If you think such a claim is "plain silly" and that it "makes no sense" maybe you need to explain why.
  - lowkey 5y ago
    I’ll stick to the problems that Bitcoin solves as I know that space better than Ethereum. Bitcoin solves a whole host of problems: - hard currency with fixed supply that cannot be inflated by any individual no matter how powerful - fixed emission (debasement) rate that can be calculated for the next 100 years and beyond - the ability to self-custody a digital store of value (no KYC required) the owner of the private key is the owner, no questions asked - censorship-resistant payments that know no borders and are not subject to political whims of a particular country - runs on proof-of-work rather than proof-of-violence such as the US dollar which requires the backing of the most powerful military-industrial complex known to man to protect it’s value. By contrast Bitcoin currently consumes less than half the electricity of YouTube to secure and protect over half a trillion dollars. - it works 24/7 and never takes a bank holiday - it is designed from the ground up to withstand direct attacks from nation-states without a standing army ready to go to war to protect it. - It allows us to achieve Distribute Consensus without a central party (Rules without Rulers) I could go on but I trust I’ve made my point.
    - lottin 5y ago
      IIRC, the question was what problems does distributed consensus solve.
      - lowkey 5y ago
        Per my comment above, every single point addresses the question of what problem distributed consensus solves as none of these points are possible without distributed consensus. Bitcoin was used for the examples as it and the Blockchain it is built upon are the original distributed consensus protocol. I suspect you already knew that but may be having difficulty admitting that I have made my case and that your position might be wrong.
        lottin 5y ago
        No, none of the points addresses the question. How is > it works 24/7 and never takes a bank holiday a problem? That's not a problem. That's a feature of some system. And what "distributed consensus" has to do with it is even more mysterious.