In a world where the Fedcoin and e-euro are commonplace, having access to a decentralized money system not tied to the whims of politics would really matter to me.
Not disagreeing but from Bitcoin, ethereum to DogeCoin they are all tied to the whims of non trust worthy persons.
What if satoshi (unlikely but maybe the Fed itself) decides to liquidate its position of at least 1M Bitcoin. Ethereum foundation forks ethereum again to roll back transactions. Or Doge is uncontrollably minted (I don’t think it has a supply cap) or Elon decides to stop pumping it and decides to dump it.
Everything else in between is just a bunch of discord/telegram armies pumping for their own interests. I just that’s great so long as you have the social credit to be on the inside.
Your post seems to have an undertone of nervousness about the exchange rate of USD/cryptocurrency which is understandable in the middle of this bull market. In my opinion bitcoin is a revolution disguised as a get-rich-quick scheme. A whale liquidating lots of BTC sounds like a sweet bargain to me. BTC has a capped supply so they will run out of steam at some point.
Due to game theory mechanics most network participants have an incentive to play by the rules and agree on rules that are as fair as possible. A hard fork has to be embraced by the majority of the users to be accepted. It's not just the miners or the whales who decide the rules.
Of course there are countless of cryptocurrencies in use right now of which most are doomed to fail (maybe even all but one are doomed to fail).
Is there any evidence that Musk actually owns Doge? I think he's said something like, it's fun as a meme but has too much central ownership for him to actually buy it.
(wouldn't be shocked if he holds BTC though, since he got Tesla to buy in there)
Fortunately, there’s a competitive crypto landscape. If none of these are actually decentralized, people will move to different currencies. Sure it will be turbulent, but we’ll probably get to something effectively decentralized eventually.
> Doge is uncontrollably minted (I don’t think it has a supply cap)
It doesn't have a hard cap, but it does have a cap on inflation: 5 billion every year (current reserve is about 128 billion). The inflation rate is less than 5% and going down every year, much lower than most fiat currencies. (Not related to why it shoots so high these days).
If the satoshi wallet holder would liquidate its position, he/she would do it like Micro Strategy and Tesla, no body really notice it over time.
Given bitcoins open ledger and the wallet address its quiet easy to anticipate that traffic. You already have chain analyses tools.
Crypto is tied to far more esoteric whims. Honestly the Fed has done an absolutely heroic job in the last 20 years and proven the USD to be almost indestructible. Crypto was founded for privacy, not for it's economic foundations which are still nonsense.
The dominant position of the USD on the world stage also might have something to do with the USA having deployed military to more than 150 countries at once and their involvement in regime changes all over the world.
Meanwhile the FED heroically partakes in piling on debt for the futures generations.
It's not so much that it's tied to esoteric whims but that it would destroy the economy if at some point were to become the primary currency, just like the gold standard did.
throwaway_kufu|4 years ago
What if satoshi (unlikely but maybe the Fed itself) decides to liquidate its position of at least 1M Bitcoin. Ethereum foundation forks ethereum again to roll back transactions. Or Doge is uncontrollably minted (I don’t think it has a supply cap) or Elon decides to stop pumping it and decides to dump it.
Everything else in between is just a bunch of discord/telegram armies pumping for their own interests. I just that’s great so long as you have the social credit to be on the inside.
ViVr|4 years ago
Due to game theory mechanics most network participants have an incentive to play by the rules and agree on rules that are as fair as possible. A hard fork has to be embraced by the majority of the users to be accepted. It's not just the miners or the whales who decide the rules.
Of course there are countless of cryptocurrencies in use right now of which most are doomed to fail (maybe even all but one are doomed to fail).
bpodgursky|4 years ago
(wouldn't be shocked if he holds BTC though, since he got Tesla to buy in there)
briefcomment|4 years ago
netheril96|4 years ago
It doesn't have a hard cap, but it does have a cap on inflation: 5 billion every year (current reserve is about 128 billion). The inflation rate is less than 5% and going down every year, much lower than most fiat currencies. (Not related to why it shoots so high these days).
dragonelite|4 years ago
tootie|4 years ago
ViVr|4 years ago
Meanwhile the FED heroically partakes in piling on debt for the futures generations.
lottin|4 years ago
seibelj|4 years ago