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Under a system of fiat currency, new currency is created when a bank makes a loan, typically under restrictions set by a central bank and within a price band th

Under a system of fiat currency, new currency is created when a bank makes a loan, typically under restrictions set by a central bank and within a price band that is loosely set by that central bank. There are 212 countries and hundreds of thousands of banks, each making individual decisions about when to make a loan. There are more such banks than there are miners of Bitcoin, so the fiat system is more decentralized than Bitcoin.

inter_netuser 5y ago
...so hundreds of thousands of banks globally, and yet all dance to the tune of the fed. either directly or indirectly via the local cb. very decentralized.
- cuteboy19 5y ago
  As opposed to the crypocurrency world which essentially runs on USDT and USDC which are printed as if there is no tomorrow
- lkrubner 5y ago
  Are you suggesting that every nation on Earth follows the same business cycle? That is not even remotely correct. East Asia followed a counter-Western-cyclical cycle for most of the last 60 years. Even if you narrow the conversation to just the West, it is extremely rare to have all 7 of the G7 in recession at the same time (other than 2009, I don't think it ever happened).
derangedHorse 5y ago
Banks have less transparency and therefore less accountability with how they manage funds. Another thing to note is that the miners are not the only decentralized aspect of Bitcoin, the nodes are. Nodes can be run from any computer with an external terabyte HD for the ledger and it takes a trivial amount of electricity to participate. Additionally, there’s no restrictions on running one and the ledger can be requested by anyone who wants to see it. The history of the ledger (a commonly ignored aspect) is also secured by all the work that has already gone into the chain which would make it infeasible for a majority of miners to rewrite significant portions of the chains history (51% attacks are mostly concerned with the future integrity of a chain).

inter_netuser 5y ago

...so hundreds of thousands of banks globally, and yet all dance to the tune of the fed. either directly or indirectly via the local cb. very decentralized.

cuteboy19 5y ago
As opposed to the crypocurrency world which essentially runs on USDT and USDC which are printed as if there is no tomorrow
lkrubner 5y ago
Are you suggesting that every nation on Earth follows the same business cycle? That is not even remotely correct. East Asia followed a counter-Western-cyclical cycle for most of the last 60 years. Even if you narrow the conversation to just the West, it is extremely rare to have all 7 of the G7 in recession at the same time (other than 2009, I don't think it ever happened).

derangedHorse 5y ago

Banks have less transparency and therefore less accountability with how they manage funds. Another thing to note is that the miners are not the only decentralized aspect of Bitcoin, the nodes are. Nodes can be run from any computer with an external terabyte HD for the ledger and it takes a trivial amount of electricity to participate. Additionally, there’s no restrictions on running one and the ledger can be requested by anyone who wants to see it. The history of the ledger (a commonly ignored aspect) is also secured by all the work that has already gone into the chain which would make it infeasible for a majority of miners to rewrite significant portions of the chains history (51% attacks are mostly concerned with the future integrity of a chain).