The thing is, this whole thing is much easier to do without using any lenders (except perhaps for the first few transactions). Just keep your profits in Bitcoins, pay off the lenders, and then keep all the profits.
It's not easy if you don't have a bunch of bitcoins to begin with. He might have a lot now, but might not have had a lot from the get go. As long as the profits are bigger than the interests, it makes sense to borrow. If he's making X% (given X is higher than btcst avg rates), it doesn't make sense to buy back his debt which yields less. Not until he sees profit margins dwindle (at which point he can buy back debt or lower rates). Also, there's no evidence that the constant, large Bitcoin transactions necessary for this to work (from A to B in your example) are actually happening. And it makes sense that they wouldn't be happening. There's advantages to dealing with Bitcoins, but not enough to justify a 10% cost on the buy side followed by selling on an exchange and withdrawing fiat to buy more Bitcoins.
Remittance, tax evasion, international trade, weapons, terrorism, drugs are a few examples where moving money across borders anonymously might be worth a lot. And whether the transactions are large or split into many small ones does not change alter the business model at all. Neither does it matter whether A is 1 or 100 people, or whether B is 1 or 1000. Or whether B sells their bitcoins on an exchange directly or through N number of middlemen. |
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Pirate takes in 100k (or whatever) btc from lenders. Sells them to client A at 10% (or more) markup. Because client A needs to be anon (thus off exchange) and needs to send large sums across borders to person B. This does not affect price.
Person B receives btc, but needs fiat, and sells it on exchange. Pushing price down. Pirate buys back cheaply.
Or pirate puts up bid wall, and B sells into it, because they want to cash out fast.
So I don't see why him buying it back needs to push the price up.
And it seems this money can be made because of bitcoins unique nature.
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Could it belong to one of his clients? If he is indeed selling to someone who wants to buy off exchange (to remain anonymous f.ex.) it makes sense that said client could have as much bitcoin as pirate's liabilities.
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Isn't it enough to just agree on one node to trust? If you then detect a fork, either stop processing and raise an alarm or go with the trusted node.
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Maybe the last 50 BTC block?!
I bid 30 BTC for that block. |
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This is expensive, but you can buy with credit card, at least I could, a few months back. Not sure if it complains about foreign (non Malaysian) cards though. https://dgtmkt.com/ |
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The bitcoin economy as a whole (the businesses, the ppl receiving salaries in bitcoin, consumers, producers etc) is so different from the "real world" that making any comparison to it at this stage makes little sense.
Also, it's so small, that it could easily grow 1% or more weekly. And if it doesn't yet, there's plenty of speculation that it will.
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You guys should really read that Vernor Vinge story.
In the ungoverned lands, you may choose to be customer of a protection agency (police force if you will). Some of these allow their clients to have guns, some do not. So you can choose who protects you, and whether you live in a place where (ordinary) people have guns or not.
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As I understood it, the issuer need not be the server, so as long as currencies as issued remotely, is this still an issue?
My problem is, I live in Malaysia, and internet here is crap. There's no way hosting a server here would be viable.
So am I out of luck, since I can't possibly be in physical control of the server?
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For a fictionalized account of what might happen if a nation-state invaded an AnCap society, The Ungoverned, by Vernor Vinge is available for free online. Great read! Vinge is one of my favourite authors. Thanks for the tip. And a good answer to my question as well. |
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How does one secure an OT server? If I run one on a VPS f.ex. how do I ensure it's not tampered with? And if it does, would it bring down the whole economy running on it, or can redundancy be ensured by having multiple servers (in the future, I know it's not here yet)?
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I'm not just talking about the "guards" within the ancap society. But the U.S. army. The Chinese. The arabs. The lithuanians. Let's say Greece collapses and turns ancap. What's to stop their neighbours from taking over?
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I'm just one guy. The rest of the world will always have more gunpower than me. So how is anarchy going to secure the property rights needed for capitalism?
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I'm waiting for the movie.
There is a movie, and it's pretty good IMHO - got me interested at least. |
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What is this loan for? Where do the dividends come from? Etc.
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Good job guys. Apparently Malaysia is on that list as well, although I had never heard of CashU before.
I know someone who might be able to help with both Arabic and Hebrew - PM me.
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Leaving anything off the list will definitely not help liquidity for the asset in question...
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Please post back your experiences. If people actually approach you with bitcoins, in the woods as you put it, it'd be interesting to hear. Especially if they carry caucas.. however it is spelled
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Interesting. Might want to attend this one.
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