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To be clear, the problem Bitcoin was designed to solve was not improving transaction throughput at scale. The problem Bitcoin aims to solve is all the trust inv
by lowkey 5y ago
To be clear, the problem Bitcoin was designed to solve was not improving transaction throughput at scale. The problem Bitcoin aims to solve is all the trust involved in the fiat system we currently call money.
The current system requires us to trust that politicians and central bankers won't give in to the temptation to debase the currency by money printing out of thin air. As a result this exposes them to spend more public funds without the traditional constraint of having to raise taxes on the populace.
In short, Bitcoin was designed to offer an alternative monetary system to those who understand that the current fiat-based system is a scam and has been since the governments all moved off the gold standard. You may argue that this assumption is incorrect, but it is clear to me that Satoshi was solving the problem of trust in the creation of money.
Satoshi found a way to create digital value by minting a form of scarce digital money that does not rely on any government to give it value and makes it virtually impossible for any centralized actor to cheat the system and print more Bitcoin out of thin air.
Satoshi's vision was about honest money not high transaction throughput.
As for payment finality, I believe there is room in the market for multiple options and offering more options to the market is almost always good.
I agree that credit card transactions have their place in society and offer real and compelling benefits for consumers, but they are a nightmare in many ways for merchants. As a merchant, you cannot really rely on credit card payment receipts to be final for ~6 months if you must be certain there will be zero chargebacks. Try managing cashflow of a business if you have to be sure you will keep all the money you received via credit cards in the past 6 months.
For merchants who wish to have an option to receive payments with clear unambiguous and immutable fast final settlement of funds with no risk of chargebacks, there really is no alternative to Bitcoin in my opinion.
tl;dr Bitcoin offers the world an option to use honest money that cannot be manipulated. Can LMAX do that?
- xupybd 5y agoCrypto as a currency could be a truly great asset to the world. Decentralized trustable currencies would offer unique benefits. However no current crypto market is basing it's value on that promise. It's simply speculation and lack of understanding.
- lowkey 5y agoI would challenge that Bitcoin + Lightning + Stablecoins are well on their way to fulfilling the promise. All three of Bitcoin / Lightning / Stablecoins offer “Decentralized trustable currencies” as well as a unique type of immutable, censorship-resistant, unreversible, fast-finality payments over the internet. These are net new novel currently and payment innovations that have never existed before. Bitcoin and Stablecoins combined as a currency are a truly great asset class. Other altcoins (including Ethereum) are not trying to be a real reserve currency for the internet. They are speculative investments in new technologies. Bitcoin is special. Bitcoin fixes problems we didn’t realize we had.
- bob1029 5y ago> Bitcoin offers the world an option to use honest money that cannot be manipulated. I don't buy this for a second. You are telling me there is no way for some entity to effectively manipulate the actual value of Bitcoin?
- ac29 5y agoIts an especially bad take in a thread about Bitcoin losing ~13% of its value in the last 24 hours.
- lowkey 5y agoPrice being volatile != Price being manipulated. Please provide evidence that the ~13% drop in value recently was caused by market manipulation, or retract your statement.
- lowkey 5y agoI mean, it’s a $1 Trillion dollar market so it would take considerable horsepower to meaningfully move the Bitcoin market today. It will get harder and harder over time. Like I said, a large central exchange could conceivably wash trade to manipulate the market, but I would ask what would be their motivation and also what is our justification for trading in conspiracy theories without evidence?