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November 24, 2015, 03:00:29 AM Last edit: November 24, 2015, 03:10:41 AM by johnyj |
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To shut down bitcoin, you just shut down exchanges, that must be coordinated world wide, but since large banks are mostly coordinated world wide, this is not really impossible
Fiat money can survive without exchanges, since it is the major transaction medium in one country. But without exchanges, bitcoin will have very limited reach. In people's imagination, there is a free market, but in reality all the markets are operated by authorities, even the largest forex interbank market is controlled by the central banks. Similarly, today's bitcoin price is controlled by a group of whale traders and possibly some banks on exchanges
If bitcoin want to survive without exchanges, there has to be an enough large group of merchants accept bitcoin payment and use bitcoin pricing without a reference exchange rate to fiat money, their pricing might derive from the mining cost of each bitcoin
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