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> because the writer has apparently never heard of a web server. This is a constant issue I have with crypto advocates. Most of the use cases can be done with
by gjulianm 5y ago
> because the writer has apparently never heard of a web server.
This is a constant issue I have with crypto advocates. Most of the use cases can be done with crypto, but also with other techs (sometimes it's as simple as "we need a database for this"). But there's never a serious analysis of why those use cases have not been covered with previous tech, and when you point out that there might be issues other than the tech then you get labeled as a "crypto hater". And I wouldn't care too much if random people called you a hater, but when all crypto people label dissent as "haters" it makes me think it's like a cult where all you need to do is believe.
- wisty 5y agoI love pointing out that if it becomes a serious currency banks would offer bitcoin-denominated loans (causing an increase in money supply); and if there's then a credit crunch the Fed could offer bitcoin-denominated (but unbacked) bonds. It would be like the gold standard all over again.
- kevinak 5y agoI'm curious why you think this is the case. It's close to impossible (good luck convincing people to devalue their money) to increase the Bitcoin supply other than through minig.
- anchpop 5y agoLoans create “virtual money” in a way, which does contribute to inflation (in fact, controlling lending is a primary way the federal reserve controls inflation)
- kevinak 5y agoYes, in the current fiat system that is the case, but there is no way for someone (a bank or government) to inflate the supply in world where Bitcoin is the currency everyone uses.
- wodenokoto 5y agoNo, you increase the amount of IOU's. I own 1 bitcoin, and everybody knows I'm good for my bitcoin (e.g., that is what a bank is. An institution everybody trusts to have money and they pay their dues.) I know write you an IOU for 1 bitcoin, and you buy a car with that IOU, because anyone who owns that IOU can come to me and get their bitcoin, and everybody knows that I am good for my money, because that is the whole condition of this thought experiment. I now write another IOU and give to my uncle, who buys a house with it, because everybody knows I'm good for it. Now the money supply has increased, without minting new bitcoins, and this is exactly what happened to gold (which, as you know as well as anybody, you can't just print)
- azth 5y agoOnce you ban money lending with interest, this is automatically solved.
- azth 5y agoThis is why loans, except out of pure charity and nothing expected in return other than the principal, are immoral and cause chaos and destruction as we've seen time and time again. There's a reason Islam prohibits money lending with interest. Same with Judaism and Christianity before they got corrupted.
- Hjfrf 5y agoExchanges and stablecoin issuers are already involved in fractional reserve banking. It's free money to them, why not?
- Karunamon 5y agoThere's no way to create "unbacked" bitcoin. You either have the transaction outputs pointing at your wallet address on the public blockchain, or you do not. Nobody wants or will accept FedBTC.
- astrange 5y agoCelsius offers interest-bearing bitcoin accounts which they use to do margin lending, so this already exists.
- Karunamon 5y agoSaid lending is denominated in stablecoins, not BTC. It's secured with a crypto, but that's not relevant. Unlike fractional reserve (which was the topic under discussion), this does not result in an increase to the money supply. No new BTC is created.
- azth 5y agoWould be great to go back to the gold standard.