Easy to say when the economy is niche and tiny. You can't compare Mt Box to TBTF. If AIG was allowed to fail. I wouldnt even wanna imagine.
MtGox was twice the size of Lehman (relative to bitcoin money supply) by some measures, and vastly larger by others. Yet its failure didn't destroy bitcoin--in fact it is already begining to make it stronger (proof of reserves, better wallets, increased awarness of counterparty risk). This is because the bitcoin economy is robust, unlike the babied fiat economy.
Inelastic money doesn't work at macro level. Some things should be decentralized but organizations need top down control. This should be instinctual if you've gone to school, played on a basketball team, work in a corporation. We humans are social animals. We expect to be governed. That's why our civilization flourish.
Except for the last century, and isolated incidents before that, we've had hard money for thousands of years in the form of gold and silver. To say that it didn't work is crazy.
Hard money is not mutually exclusive of community organization. They're two different things. Money is just a construct used to solve the double-coincidence of wants problem. Saying you can't have hard money and community organization or forms of governance (or even economic stimulus) is ignoring almost the entire history of humanity.
Bitcoin has become such a cult that "believers" think its the cure to the worlds ailments. The economic crisis we are facing is mostly about regulation, systemic risk, globalization and wealth inequality. Who cares about central bankers and FRB? Who cares aboit bitcoin except the technology to transfer money. Those are red herrings creating diversion from the real issues that needs discussion
Bitcoin is simply a useful technology. It is a peer-to-peer electronic cash system that allows users to store, transport and exchange funds with other users across the world, without the assistance of a third party or the permission of an authority.
But people are scared of new useful things because their subconscious knows that it will reshape the world and their interpretation of reality. People were even scared of physics hundreds of years ago because "no man can understand the motion of the heavens for they are God's creation."
This is why you are here. Your subconscious already knows that bitcoin is useful, but your current perception of reality doesn't allow you to see why that is. So you come to a forum filled with people interesting and excited about bitcoin to try and remedy the cognitive dissonance that fills your brain.
