Bitcoin Forum

"by Charles Eisenstein"

10th September 2014




“With these learnings from the Bitcoin experiment, I would like to propose a new model for digital currency. The question is how make the issuance of and access to money egalitarian on the one hand, yet also regulate the money supply in an organic, decentralized way.”

https://blog.p2pfoundation.net/the-next-step-for-digital-currencies/2014/09/10

This as always been contemplated as a possibility by a lot of people over time,
yet nobody has found a way to have a decentralized, egalitarian model for issuing and distributing cryptocoins.

Maybe proof of ID? But that won't be decentralized at all.

The problem is much bigger than what it seems, and the article does not really say anything new.

The least egalitarian way to distribute bitcoins is to give them away. The most is to trade an equal amount of value for them, which is how it is done now.

What about work? What about merit? What about talent? Sorry, but issuance and access to money shall never be egalitarian. No way!

The dilemma is:

If you limit the total supply, it becomes a "to be the early adopter" gold rush, the coin becomes very scarce and highly speculative

If you do not limit the total supply(keep each block coin generation at 50 btc forever, or have an annual increase of 3% like Friedman suggested), then it will have endless supply, its value will be very stable and boring, thus almost no one will care about it (The expected gain of using bitcoin over fiat currency will be so small that it does not even worth the effort)

So, to find its ground in already crowded monetary/payment system, bitcoin selected the deflative end of the spectrum, which is a huge success so far

 We are welcoming new development
IdealReseerve soon on exchange

https://www.idealreserve.info/ (https://www.idealreserve.info/)
half second transaction,inflation deflation control algorithm,kind of economy with his own value priced in usa dollar

and kroin system,mining through searching

http://www.kroin.net/ (http://www.kroin.net/)

Someone pointed out something similar on another thread for what bitcoin has to go through.

Like gaining 1% of any market will rise its self worth.

https://bitcointalk.org/index.php?topic=1066414.new#new

still someone can fake his account(having many one) and receive much more than he should get originally, for a real distribution checking ip alone isn't enough you need something like a photo or a video of the future owner of those distrubuted coins

Especially as some people will lose, spend or give away their fair share and end up with nothing.
They will then complain that the system isn't fair as some who saved, stole or somehow acquired coins would be rich in the new world, just as they are under the current system.

Maybe a photo of a fingerprint.

With such a plethora of coins there should be different cryptocurrencies offering and diverging in different paths. This is what makes them so attractive to the general public, that we can choose different digital currencies for different purposes..  :)

It's often argued by some people how "we need to find the next step beyond Bitcoin". Yet, they never either deliver solid arguments of why we need to go beyond Bitcoin, and how, when the blockchain does everything we need and what it doesn't, it' already being worked on to do it in the future.

well bitcoin is the best crypto i guess, though it could have bigger block size and average block time could be reduced to at least 5 minutes

And that's exactly what's being developed as we speak. Confirmation time is not really important, I don't see people complaining that credit cards take 180 days of confirmation time, they just assume they payment went through. What we need if we want BTC to be a success is to be able to process as many payments as all the big electronic payment players in the game, this means we need a bigger block size, way bigger than 1MB, eventually bigger than 20MB.

The next step for digital currencies is adoption - it has to be adoption. Without increased adoption future enhancements, access, wallet types, security features, etc. are meaningless! Press, word of mouth, big sponsors/advocates, education - all of this is needed to enable the broad public to be more comfortable with bitcoin.

I'm not sure whether it exists but in a real world, does equal rights and opportunities is really possible? Fact is there will always be loopholes and a way for a person to be more well off compared to the other. So no matter how perfect the system is, it will cease to exist if there is no way to reward and give a bigger piece of the cake for those who manages to outperform the others.

At least with BTC we know the fundamentals of the game can't be rigged (no one can modify the supply and create infinite money for them at will). That alone defeats fiat as superior currency.

Fiat is better if it is printed by the equation  M = (1/V)*P*Y

Unfortunately, V, P, and Y are difficult to determine.

Those get determined by Ben Bernanke and friends, thats exactly why Bitcoin is better.

Appearantly, it is also difficult to determine M. We have a single equation with four unknowns. Not solvable.

sendfreetransactions=1

sendtoaddress [address] [balance + amount]