News for hackers. Stuff that matters.

A comment on Goldman Sachs Report Explores Use of Bitcoin as Currency. Parent comment

Re:Goldman Sachs Report Explores Use of Bitcoin as Currency by ThomPete on Tuesday January 16, 2018 @12:09PM (#16159791)
US dollar is supported by a government (or more precisely a central bank) just like Greece and Venezuela is. But who supports the government? A government can default. The USD can default. It is only in very recent times that currencies have been stable (at the cost of having to grow the economy to beat the inflation) historically they haven't. Just ask the Germans in the 30ies.

It's an illusion to think that just because a government is behind a currency it's exempt from loosing all it's value.

The lender of last resort is the government but governments can fail.

Just because they are stable today does not make them stable tomorrow.

Bitcoin has more utility than a clone because it has a unique history and a unique set of backers (the network) and those backers have exactly the same function as they state.

Bitcoin is better supported than some currencies and worse supported than others. But it exist in that spectrum not separate from it.

[ Parent | on HN ]
Re:Goldman Sachs Report Explores Use of Bitcoin as Currency by Nursie on Tuesday January 16, 2018 @02:06PM (#16161142)
I didn't say it's exempt from losing value, however we have some fairly good means of trying to ensure that doesn't happen, which have been relatively successful of late.

With Cryptocurrencies there are none, by design.

>> Bitcoin has more utility than a clone because it has a unique history and a unique set of backers (the network) and those backers have exactly the same function as they state.

This is utter nonsense, backers have none of the power of the state to alter supply, set rates etc etc.

>> Bitcoin is better supported than some currencies and worse supported than others. But it exist in that spectrum not separate from it.

Well, given the fees, processing times, lack of support mechanisms and transaction processing limits, I'd say it's a damn poor one.

[ Parent | on HN ]
Re:Goldman Sachs Report Explores Use of Bitcoin as Currency by ThomPete on Tuesday January 16, 2018 @04:08PM (#16162615)
No it's not nonsense at all. A country can default no matter the intentions and attempts of it's government.

There is always a reality. That same reality plays out differently with bitcoin compared to the USD but fundamentally there is no absolute base for either currency nor bitcoin. And history is littered with examples of this.

[ Parent | on HN ]
Re:Goldman Sachs Report Explores Use of Bitcoin as Currency by Nursie on Tuesday January 16, 2018 @07:03PM (#16164140)
That's not what I called nonsense.

The nonsense part was you saying that the BTC community back the currency like a government. They can't, the currency doesn't work that way.

[ Parent | on HN ]
Re:Goldman Sachs Report Explores Use of Bitcoin as Currency by ThomPete on Tuesday January 16, 2018 @07:18PM (#16164254)
In what way are they different besides the trivial differences? Who backs the state?
[ Parent | on HN ]
Re:Goldman Sachs Report Explores Use of Bitcoin as Currency by Nursie on Wednesday January 17, 2018 @04:59AM (#16166759)
Because the state can create more currency, change interest rates and various other things that cannot be done with Bitcoin. This is by design and is widely celebrated by the community.

I'm surprised you don't know this.

[ Parent | on HN ]
Re:Goldman Sachs Report Explores Use of Bitcoin as Currency by ThomPete on Wednesday January 17, 2018 @05:07AM (#16166793)
You arent answering the question. Who backs the state?
[ Parent | on HN ]
Re:Goldman Sachs Report Explores Use of Bitcoin as Currency by Nursie on Wednesday January 17, 2018 @08:34AM (#16167723)
The question is irrelevant, there is a clear difference between the 'backing' of a state which can manipulate the currency supply directly and the backing of entities that cannot.

You claimed that bitcoin's backers have the same power as the state. They do not. End of story.

[ Parent | on HN ]
Re:Goldman Sachs Report Explores Use of Bitcoin as Currency by ThomPete on Wednesday January 17, 2018 @02:22PM (#16170883)
No I claimed that they have the same function. Neither of them can secure against defaulting completely but the function is the same. There is enough inertia in the bitcoin network enough people with most of the bitcoins gotten at a very low price and holding, other words there is a base.

So no it's not irrelevant it's the very core of this discussion.

[ Parent | on HN ]