Bitcoin and centralization

[selavy59]

Does not Bitcoin (I'll use the term 'Bitcoin' in place of Crypto coin) lend itself to centralization? It would be perfect for any government to set up its own Bitcoin, premined with a yearly inflation rate. It does not require that much computing power and would only require a small number of distributed servers.

The government itself would not set this up but would license a private firm to create and run the Bitcoin network. All public addresses would have to be registered and Bitcoin would 'enjoy' the same insurance offered by todays banks provided wallets are stored in 'Bitcoin banks'.

It would be the stuff of nightmares. Every transaction you ever make is recorded for all to see and for businesses to make use of. ALL your transactions from cradle to grave. Enough to give the banksters of today a permanent erection.

Simon.

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[georgegreek]

This would implement to bitcoin all the disadvantages of fiat currencies that made bitcoin a success. Once the technology is already capable of supporting a well functioning decentralized bitcoin, noone would use the centralized one. It would be a total fail. Unless they were able to STOP the decentralized bitcoin and in the free world this is impossible. So...

[empoweoqwj]

If a government ran its own cryptocurrency it wouldn't need to mine anything. It would just "declare" the coins exist, and create any new ones it wanted whenever it wanted. You could run it on a Sinclair Spectrum.

btw, every bitcoin transaction you ever make is already recorded. Its called the blockchain.

[beetcoin]

there isn't that big of a need for cryptocurrency if you can create as many as you wanted. that's the biggest selling point for BTC.. if you remove that, so many people upset with the current economic system wouldn't put their money in.

[selavy59]

Posted by: georgegreek
... Once the technology is already capable of supporting a well functioning decentralized bitcoin, noone would use the centralized one. ...

The government could simply ban use of any other crypto currencies. Or a softer method would be to require businesses can only trade in government backed cryptocoin.

Posted by: empoweoqwj
btw, every bitcoin transaction you ever make is already recorded. Its called the blockchain.

Yes but it's not easy for businesses to take advantage of. If each address had to be registered then businesses need not run their loyalty cards anymore. All the consumer info they want is held in the government version of the blockchain.


Posted by: empoweoqwj
This would implement to bitcoin all the disadvantages of fiat currencies

That is exactly what the present banksters would like.