BitTrivia
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December 27, 2013, 09:52:05 PM |
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Sure they can create a centralized one. But for the first time in history they now have to compete with trustless cryptocurrencies. We've solved a real-world problem that's never been solved before and that changes how things will unfold in the future.
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HeliKopterBen
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December 27, 2013, 10:39:28 PM |
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Why couldn't they?
Because they have already done that and it failed. The USD was pegged to gold up until 1971, at which time the Nixon administration arbitrarily decided to cease USD convertibility into gold. The USD has lost 83% of its value since that time. This is the entire problem bitcoin solves. That doesn't make any sense. You're saying the USD was pegged to gold until 1971. That's true. So that means that they can in fact peg it to gold. Just that it will fail eventually. I wasn't saying it won't fail, it will, but it will take decades to fail. Maybe even 100+ years just like how the USD is still around. So again, why can't they? Well yes, technically they could, but there is no point in trying something that has already failed when you have a far superior system. |
Counterfeit: made in imitation of something else with intent to deceive: merriam-webster
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BigJohn
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December 27, 2013, 10:54:42 PM |
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Why couldn't they?
Because they have already done that and it failed. The USD was pegged to gold up until 1971, at which time the Nixon administration arbitrarily decided to cease USD convertibility into gold. The USD has lost 83% of its value since that time. This is the entire problem bitcoin solves. That doesn't make any sense. You're saying the USD was pegged to gold until 1971. That's true. So that means that they can in fact peg it to gold. Just that it will fail eventually. I wasn't saying it won't fail, it will, but it will take decades to fail. Maybe even 100+ years just like how the USD is still around. So again, why can't they? Well yes, technically they could, but there is no point in trying something that has already failed when you have a far superior system. Oh yeah, and I totally agree. But would the general public agree? |
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HeliKopterBen
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December 27, 2013, 11:07:40 PM |
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Why couldn't they?
Because they have already done that and it failed. The USD was pegged to gold up until 1971, at which time the Nixon administration arbitrarily decided to cease USD convertibility into gold. The USD has lost 83% of its value since that time. This is the entire problem bitcoin solves. That doesn't make any sense. You're saying the USD was pegged to gold until 1971. That's true. So that means that they can in fact peg it to gold. Just that it will fail eventually. I wasn't saying it won't fail, it will, but it will take decades to fail. Maybe even 100+ years just like how the USD is still around. So again, why can't they? Well yes, technically they could, but there is no point in trying something that has already failed when you have a far superior system. Oh yeah, and I totally agree. But would the general public agree? We will let the markets decide and so far so good for bitcoin. |
Counterfeit: made in imitation of something else with intent to deceive: merriam-webster
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Peter R
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December 27, 2013, 11:11:08 PM |
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Why couldn't they?
Because they have already done that and it failed. The USD was pegged to gold up until 1971, at which time the Nixon administration arbitrarily decided to cease USD convertibility into gold. The USD has lost 83% of its value since that time. This is the entire problem bitcoin solves. That doesn't make any sense. You're saying the USD was pegged to gold until 1971. That's true. So that means that they can in fact peg it to gold. Just that it will fail eventually. I wasn't saying it won't fail, it will, but it will take decades to fail. Maybe even 100+ years just like how the USD is still around. So again, why can't they? Well yes, technically they could, but there is no point in trying something that has already failed when you have a far superior system. Oh yeah, and I totally agree. But would the general public agree? I think BigJohn has many valid points: there is precedent for a gold-backed currency (original fiat currencies) and eGold actually was fairly successful for a time ($2 billion per year in velocity, $20 million monetary base). But I think HeliKopterBen and BitTrivia have the right idea: "We've solved a real-world problem that's never been solved before and that changes how things will unfold in the future." Indeed, the pendulum of public perception has swung. We now distrusts powerful banks, government bureaucracy, and centralized organization. The future of money is a decentralized cryptocurrency like bitcoin. |
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BigJohn
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December 28, 2013, 12:04:09 AM |
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That's the thing that's keeping me hopeful that a Bank or a Government won't be able to compete with Bitcoin.
I'm hoping that people have been burned enough that if some big bank decides to make its own cryptocurrency, people would shy away from it just because it's a bank.
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Rassah
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December 29, 2013, 08:19:34 AM |
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OP fails pretty badly in understanding network effects  Welcome, newbie  |
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waxwing
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January 04, 2014, 02:15:02 PM |
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Why couldn't they?
I explained why they couldn't in post 19 in this thread. |
PGP fingerprint 2B6FC204D9BF332D062B 461A141001A1AF77F20B (use email to contact)
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