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Why Bitcoin Is Valuable

2 points by ca98am79 4y ago

trinovantes 4y ago
> Faith in money Faith in fiat is also backed by the government's monopoly on violence (police/military) > Secure Accounts As long as you can you remember your password and is physically able to provide it. Also it's only secure as long as the conjectured secure cryptographic algorithms remain secure. SHA256 is getting weaker every year. > Untaxed Income and Investment Sounds illegal > Moving money is cheaper/faster The delay is sometimes a feature for security. Bitcoin is not even that fast unless you're comparing transferring between unfriendly nations. > Fair money How is a deflationary currency that heavily favors early adopters fair? > When fiat fails If the USD fails, the next currency will be bullets/alcohol/tobacco, not Bitcoin > Sanctions Evasion Sounds illegal
- smt88 4y ago
  Tax and sanctions evasion are the only real use-cases. If crypto were going to fix and revolutionize the monetary system of an oppressive dictatorship, it would have already.
- andsoitis 4y ago
  > Faith in fiat is also backed by the government's monopoly on violence (police/military) Can you explain the causal link?
  - trinovantes 4y ago
    If my store refuse fiat, then the police may come If my (oil) nation refuse their fiat, then their military may come Sounds like pretty convincing arguments to me to "believe" in said fiat
  - jfengel 4y ago
    The dirt you live on is managed by a government. It sends you a bill for taxes, denominated in the fiat currency. If you do not pay that bill, they send men with guns to either take it or arrest you. That is the ultimate source of a fiat currency's legitimacy. Everything else flows down from that: the government pays for its own goods and services in that currency, and everybody else uses it for transactions because it's the lowest common denominator. The government manages its currency through a bank to try to keep its economy on a good footing. Any other currency lacks that fundamental "I have to have it if I want to live here." It might have other advantages, but in the end you'll have to convert it back to the currency accepted by the people who manage the dirt you live on. The "fiat" of the fiat currency is a government order, backed by real-world power. A non-fiat currency lacks even that much.
    - andsoitis 4y ago
      where's the "faith" part linked to the threat of violence?

2 points by ca98am79 4y ago

> Faith in money Faith in fiat is also backed by the government's monopoly on violence (police/military) > Secure Accounts As long as you can you remember your password and is physically able to provide it. Also it's only secure as long as the conjectured secure cryptographic algorithms remain secure. SHA256 is getting weaker every year. > Untaxed Income and Investment Sounds illegal > Moving money is cheaper/faster The delay is sometimes a feature for security. Bitcoin is not even that fast unless you're comparing transferring between unfriendly nations. > Fair money How is a deflationary currency that heavily favors early adopters fair? > When fiat fails If the USD fails, the next currency will be bullets/alcohol/tobacco, not Bitcoin > Sanctions Evasion Sounds illegal

smt88 4y ago
Tax and sanctions evasion are the only real use-cases. If crypto were going to fix and revolutionize the monetary system of an oppressive dictatorship, it would have already.
andsoitis 4y ago
> Faith in fiat is also backed by the government's monopoly on violence (police/military) Can you explain the causal link?
- trinovantes 4y ago
  If my store refuse fiat, then the police may come If my (oil) nation refuse their fiat, then their military may come Sounds like pretty convincing arguments to me to "believe" in said fiat
- jfengel 4y ago
  The dirt you live on is managed by a government. It sends you a bill for taxes, denominated in the fiat currency. If you do not pay that bill, they send men with guns to either take it or arrest you. That is the ultimate source of a fiat currency's legitimacy. Everything else flows down from that: the government pays for its own goods and services in that currency, and everybody else uses it for transactions because it's the lowest common denominator. The government manages its currency through a bank to try to keep its economy on a good footing. Any other currency lacks that fundamental "I have to have it if I want to live here." It might have other advantages, but in the end you'll have to convert it back to the currency accepted by the people who manage the dirt you live on. The "fiat" of the fiat currency is a government order, backed by real-world power. A non-fiat currency lacks even that much.
  - andsoitis 4y ago
    where's the "faith" part linked to the threat of violence?