Re:Bitcoin Is Time
by cwkoss on Tuesday March 02, 2021 @03:21PM
(#26320074)
I'd argue that USD in isolation doesn't support those use cases: the banking system does.
There is no reason a parallel banking system with all of the same features cannot built with Bitcoin being used as the denomination. I think this future is increasing likely (probably much to the chagrin of decentralization advocates) as Bitcoin increases in value and number of holders.
efficient high-volume transfers - risky and expensive to do with cash, really requires a hawala-like middleman (often a bank)
reversibility - not true of cash, only true within the context of softer credit systems. You could build a "Venmo backed by Bitcoin" where funds cannot be withdrawn for the reversibility period if you thought there was market demand for it.
ID verification - subject to discretion of counterparty
fraud investigation - Bitcoin is likely much better than USD for this because of it's traceability.
There is no reason a parallel banking system with all of the same features cannot built with Bitcoin being used as the denomination. I think this future is increasing likely (probably much to the chagrin of decentralization advocates) as Bitcoin increases in value and number of holders.
efficient high-volume transfers - risky and expensive to do with cash, really requires a hawala-like middleman (often a bank)
reversibility - not true of cash, only true within the context of softer credit systems. You could build a "Venmo backed by Bitcoin" where funds cannot be withdrawn for the reversibility period if you thought there was market demand for it.
ID verification - subject to discretion of counterparty
fraud investigation - Bitcoin is likely much better than USD for this because of it's traceability.