4 ms·

Fiat currencies are backed by huge financial sectors. If all you need are numbers in a database, what are all those towers in NY for?

• pessimizer 4y ago
  There's nothing about crypto that shows it wouldn't have exactly the same size of a financial sector in addition to proof of work, so the two aren't doing the same things. Forget fiat. When money was gold in a vault, that's proof of stake, not proof of work. For proof of work, you'd have to disintegrate the gold. I wouldn't put my trust in a dollar backed by the absence of gold. edit: I think maybe bitcoin enthusiasts think that value is a sort of spirit, and that if you kill something valuable, then through a huge mass ritual you can direct that spirit into another vessel. Proof that you once had money, and further proof that no one else has that money, should be enough for people to treat you as if you currently have money.
  • betwixthewires 4y ago
    Your gold analogy makes no sense to me, so either I'm misunderstanding it or you don't understand what you're trying to explain. > I think maybe bitcoin enthusiasts think that value is a sort of spirit... Interestingly, that is actually kind of how it works. The money you use itself has no value, it's value is in the things you use it to trade. So if you start trading in other currencies, those currencies receive that value, which gets reflected in the purchasing power metric.
  • deleted 4y ago
    [deleted]
• deleted 4y ago
  [deleted]