Re:Ask HN: Will banks inflate Bitcoin just like they inflate...
by JonathanBeuys on Tuesday July 26, 2022 @01:37AM
(#32234663)
No, this is a complete misunderstanding.
It does not matter, how Bitcoin works.
The bank can tell their customer "Your balance of XYZ is 1000". No matter if XYZ is Dollar, Euro, Rings of Jupiter or Bitcoin. Banks "create" whatever they like out of thin air by just telling their customers that their "balance" is so and so.
That's why Henry Ford said that if people understood the monetary system, there would be a revolution tomorrow.
If this concept is new to you, then google "money is debt" and you are up for a ride.
Re:Ask HN: Will banks inflate Bitcoin just like they inflate...
by idontwantthis on Tuesday July 26, 2022 @06:21AM
(#32236430)
What you're describing is a made up fiat currency with the same name, not actual Bitcoin. Bitcoin isn't real unless it exists according to the Bitcoin blockchain.
A bank can't create Bitcoin anymore than I can create dollars. I can create something that I say is dollars, but when I try to use it as dollars no one will accept it.
First, what you are describing is closer to Ethereum, which is a payment vehicle that disperses ..not bitcoin. think bitcoin as closer to gold.
You can't "create it" out of thin air. That's what blockchain is all about. Think tiny little receipts that are shared instantly with a million computers. To "create it out of thin air' you would have to hack a million computers at one time and give them all the unique blockchain proof of mining...which is impossible right now.
simply = blockchain technology is what is keeping banks from creating it out of thin air.
Hope that helps