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So does that mean that if Amazon [1], Paypal [2], Square [2], and Visa [3] start accepting Bitcoin, it's now backed by the U.S. economy? [1] https://gizmodo.co

So does that mean that if Amazon [1], Paypal [2], Square [2], and Visa [3] start accepting Bitcoin, it's now backed by the U.S. economy? [1] https://gizmodo.com/amazon-to-accept-bitcoin-by-end-of-2021-and-develop-own-1847360405 https://gizmodo.com/amazon-to-accept-bitcoin-by-end-of-2021-... [2] https://www.barrons.com/articles/bitcoin-goes-mainstream-as-paypal-and-square-embrace-digital-currencies-51607457036 https://www.barrons.com/articles/bitcoin-goes-mainstream-as-... [3] https://www.cnbc.com/2021/07/07/visa-says-crypto-linked-card-usage-tops-1-billion-in-first-half-of-2021.html https://www.cnbc.com/2021/07/07/visa-says-crypto-linked-card...

rchaud 5y ago
No, because it still isn't legal tender, and lacks credibility as a medium of exchange. The simplest example of this is loyalty programs that offer 'points' that can be redeemed for goods and services. Since the points are useless on their own, the vendor creates agreements with other businesses so that they accept the points. That's what gives the rewards program credibility. Real currency still changes hands in the background, but the customer only spends 'points'. Currencies, although unbacked by gold, are still credible because they are legal tender and widely accepted in ways that rewards points are not. Amazon and other private businesses can refuse to accept BTC whenever they want. Earlier this year, Tesla 'accepted BTC for payments', and then changed their mind a month later.
- matheusmoreira 5y ago
  > No, because it still isn't legal tender, and lacks credibility as a medium of exchange. Some countries have accepted BTC as legal tender. It's only a matter of time really.
  - paulryanrogers 5y ago
    > Some countries have accepted BTC as legal tender. It's only a matter of time really. Why?
    - matheusmoreira 5y ago
      There are real precedents now, I have no doubt others will follow. Cryptocurrencies are real currencies, there's no reason not to accept them as such.
      - paulryanrogers 5y ago
        Non-blockchain fiats are significantly less energy intensive than DeFi, their reversibility is a feature (IMO), and KYC regulations are needed to resist corruption and funding crime. So what compelling advantages does DeFi offer besides pseudo-anonymity and temporarily sidestepping hyperinflation? Considering the shaky fundamentals, I'd rather not trust greedy strangers to stop burning the world down trying to get rich quick.
selectodude 5y ago
Once I can pay my taxes in Bitcoin will be the day that it's backed by the US Economy. I've helped friends move in exchange for beer and pizza but nobody would call that a transaction "backed by the US Economy".
- ghostwriter 5y ago
  Taxes are not part of Economy, taxes are extortion of accumulated value from the Economy backed by a monopoly on the ultimate physical coercion. Your voluntary exchange of values with your friends is the actual Economy you're looking for.

rchaud 5y ago

No, because it still isn't legal tender, and lacks credibility as a medium of exchange. The simplest example of this is loyalty programs that offer 'points' that can be redeemed for goods and services. Since the points are useless on their own, the vendor creates agreements with other businesses so that they accept the points. That's what gives the rewards program credibility. Real currency still changes hands in the background, but the customer only spends 'points'. Currencies, although unbacked by gold, are still credible because they are legal tender and widely accepted in ways that rewards points are not. Amazon and other private businesses can refuse to accept BTC whenever they want. Earlier this year, Tesla 'accepted BTC for payments', and then changed their mind a month later.

matheusmoreira 5y ago
> No, because it still isn't legal tender, and lacks credibility as a medium of exchange. Some countries have accepted BTC as legal tender. It's only a matter of time really.
- paulryanrogers 5y ago
  > Some countries have accepted BTC as legal tender. It's only a matter of time really. Why?
  - matheusmoreira 5y ago
    There are real precedents now, I have no doubt others will follow. Cryptocurrencies are real currencies, there's no reason not to accept them as such.
    - paulryanrogers 5y ago
      Non-blockchain fiats are significantly less energy intensive than DeFi, their reversibility is a feature (IMO), and KYC regulations are needed to resist corruption and funding crime. So what compelling advantages does DeFi offer besides pseudo-anonymity and temporarily sidestepping hyperinflation? Considering the shaky fundamentals, I'd rather not trust greedy strangers to stop burning the world down trying to get rich quick.

selectodude 5y ago

Once I can pay my taxes in Bitcoin will be the day that it's backed by the US Economy. I've helped friends move in exchange for beer and pizza but nobody would call that a transaction "backed by the US Economy".

ghostwriter 5y ago
Taxes are not part of Economy, taxes are extortion of accumulated value from the Economy backed by a monopoly on the ultimate physical coercion. Your voluntary exchange of values with your friends is the actual Economy you're looking for.