3 ms·
> The use case is a world without central banks and central currency manipulation. > People who don’t see the use case don’t understand the scope of what direc
by JackFr 5y ago
> The use case is a world without central banks and central currency manipulation.
> People who don’t see the use case don’t understand the scope of what direct exchange of currency without central management entails.
People who see that as a feature don't understand how credit works nor its importance in modern financial capitalism.
- didericis 5y agoCredit and hard crypto currencies are not incompatible. The main difference is crypto sets hard limits on underlying denominator of value and distinguishes it from credit. There are potential liquidity problems and endless debates about whether having everything backed by crypto like bitcoin would be a net positive. I don’t have the background to get into all the economic implications and I’m not entirely sold on this alternative crypto based future I’m presenting being a good thing, even if possible. Rather than dismiss these types of arguments, though, I’d like to see more central bank advocates explain why creditors which accumulate bitcoin would not be able to act similarly to current issuers of credit, but more checked and decentralized because none would have control over the production of the underlying value representation that’s borrowed against.