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Why would consumers worry about whether there is a single point of failure in the Bitcoin economy? What they do worry is whether they will be able to take their
by rubinelli 13y ago
Why would consumers worry about whether there is a single point of failure in the Bitcoin economy? What they do worry is whether they will be able to take their money out when they want it, and that means fewer, larger, and supposedly more trustworthy exchanges.
- dmix 13y ago> Why would consumers worry about whether there is a single point of failure in the Bitcoin economy? Consumers will worry when it becomes either illegal or prohibitively expensive to operate centralized Bitcoin exchanges, which is the likely outcome. That will quickly lead to a oligopoly of 2-3 exchanges dominating the market, just like every heavily-regulated market where it's too expensive for small shops to compete legally. Then you'll have a Paypal type experience where money/BTC is constantly withheld and all transactions are under surveillance. Defeating many of the benefits of Bitcoin (privacy and fluidity). > What they do worry is whether they will be able to take their money out when they want it Consumers don't need to worry about taking money out of decentralized exchanges. Since exchanges don't hold their money. That's the whole point: a) Disconnecting the massive BTC wallets storage on exchange servers, instead they are strictly for facilitating transactions (escrow is built into the BTC protocol) b) P2P distributed hosting of exchange servers so operating "trustless" exchanges can't become outlawed
- rubinelli 13y agoYou do realize that what cryptolibertarians and regular consumers value is drastically different, right?
- dmix 13y agoFor now :) The things I mentioned are the inherent value in BTC. If you want regulated centralized exchanges then you might as well just keep your fiat currency and PayPal.