[ExI] Bitcoin

BillK pharos at gmail.com
Fri Apr 5 14:04:37 UTC 2013


On Fri, Apr 5, 2013 at 1:52 PM, Gordon wrote:
> Well, the idea behind bitcoin is that it can or should replace fiat
> currency. I think what you really mean is that I have convinced you that a
> digital currency that replaces what we now call fiat currency will still be
> a sort of fiat currency. I hope I'm wrong.
>
> If I'm not wrong then another question comes up: is a  decentralized fiat
> currency created somewhat haphazardly by the people better than one  created
> by a central bank? Offhand I would think not, but it's a possible argument.
>
>

People are now panicking about fiat currency because of the huge debt
overhang and the money printing which are expected to wipe out fiat
currencies at some future time. Maybe five years, maybe next week.
What people are desperate for is a store of value.

That's why rich people are paying 5 million for a flat in central
London. Ridiculous prices!
Same for art, gold, shares, whatever. People want to get rid of fiat
currency and own something that maybe someone might want to buy off
them when the new money replaces the fiat currency at a ratio of
1:1,000,000.

The difficulties are -
Will someone want to buy their chosen store of value in the future?
If the state can steal bank balances, then the state can also forbid
possession of other assets. Gold has been requisitioned in the past.
Huge property taxes can be levied. As has happened in the past.

Perhaps eventually everyone will be living on food stamps provided by
the government (or their friendly AI provider).

BillK



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