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The consideration of B still comes in when the bitcoin needs to be exchanged for actual goods or services though, where the payment (at least in 99.99% of cases
by SahAssar 4y ago
The consideration of B still comes in when the bitcoin needs to be exchanged for actual goods or services though, where the payment (at least in 99.99% of cases) needs to be in traditional currencies. So bitcoin has not really removed a problem, bitcoin has just moved it. My argument is at least somewhat under the assumption that the trades/exchanges need to be legal to be mainstream. If you assume only illegal trades then of course it easier to postulate a system that works since it does not need to consider how it would work internationally or within a state.
I don't think I'm confused (but then again confused people usually think they are not), but I do think that modifying the traditional system is far more reasonable and doable than moving to the alternative crypto/blockchain system. Considering all the money and manpower thrown behind crypto I'd say it's not unreasonable to think that a better system building on the traditional finance system could be built.
- hnfong 4y agoThe point is, as it didn't seem to get across in my previous comment, is that Bitcoin doesn't suffer (as much) from consideration B because any shady dealer can act as an "exchange", whereas traditional non-physical finance requires a chain of somewhat reputable institutions to be the middle person. You can't "fix" traditional finance system if the government of one party makes it illegal to do trades (unless you're thinking about plotting a revolution in another country).