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Control is only a problem if the incentives of the person in control are not aligned with ones own incentives. When you drive on the highway, every single driv
by ArtTimeInvestor 5y ago
Control is only a problem if the incentives of the person in control are not aligned with ones own incentives.
When you drive on the highway, every single driver in the oncoming traffic is in control of a car that would kill you if they just decide to move their steering wheel into your direction. Luckily, there is little incentive for them to do so. So driving is relatively safe.
When you invest into Bitcoin, there might or might not be people who could devalue it to some degree. Luckily, those are the people with a substantial investment in the same asset you are invested in. So there is no incentive for them to do so.
When you invest in fiat currency, the incentive of the people in power are completely misaligned with the holders of that currency. The people in power gain more power by printing fiat that they then can spend.
- ur-whale 5y agoYeah, many people seem to completely miss the game-theoretical feedback loops built into Bitcoin, the most obvious of which being "fuck with the system, shoot yourself in the foot".