Re:Adam Smith Hates Bitcoin
by Andrew_Quentin on Friday April 12, 2013 @08:15PM
(#5541933)
"as consensus among those who control a sufficient portion of the network can evolve the bitcoin protocol"
Does this refer to the 51% effect? Isn't the solution to that for other people to simply start mining?
First: inflation isn't equivalent to taxation (it transfers wealth from net creditors to net debtors, not from everyone else to the government.) [It also, at moderate levels, promotes investment and, thereby, economic growth.]
Second: as consensus among those who control a sufficient portion of the network can evolve the bitcoin protocol, its not actually immune to having a privileged class impose monetary policy.
Third: Except by replacing some functions of "bankers" with those of "miners", I'm not sure how Bitcoin gets away from any "banking monopolies" that actually exist.
> Isnt that a system that "facilitate transactions and make the economy as a whole rich"??
No, it would (assuming that the features which make inflation impossible were maintained) be a system which undermines the features that were introduced to encourage productive development (and, therefore, "make the economy as a whole rich") with deflationary features which have the opposite effect.