[ExI] Bitcoin

Mirco Romanato painlord2k at libero.it
Fri Apr 5 18:45:52 UTC 2013

Il 05/04/2013 02:54, Gordon ha scritto:
> Mirco,
>>> As I wrote to another fellow here on ExI, my concern for the long
>>> term is that even while Bitcoin is structured such that there is a
>>> maximum number of coins which can be mined, ensuring scarcity and
>>> thus in this respect making it similar to a precious metal, there
>>> is no limit to the number of digital currencies which might compete
>>> with it. I know of at least six, including Litecoin which is said
>>> to be silver to Bitcoin's gold. But are digital currencies really
>>> analogous to precious metals? I rather doubt it. I can make a new
>>> digital currency but I cannot make a new precious metal.

> When I wrote those words above, I was alluding to the possibility that
> although bitcoin is ingeniously structured to ensure scarcity of
> bitcoins over the long run, analogous to what nature has done for gold,
> the proliferation of alternative digital currencies might nonetheless
> inflate the overall digital money supply into the indefinite
> future. Just as central banks can "print money" out of thin air, so too
> can anyone create a new bitcoin-like digital currency. If am correct
> about this then the scarcity of digital money is illusory and it loses
> an important advantage over ordinary fiat money. I would rather be
> incorrect. What is wrong with my thinking here?

The point is "Why implement and accept any alternative digital currency
over Bitcoin?"

I could see the advantage to have two or three digital currencies with
different features, just for the sake to have not all the eggs in the
same place.

But after them, there is no compelling reason to have more.

It is you come to me and say: let use Zimbabwean $ or Egyptian £ or
Swedish Crowns. What I should use them if they are managed the same as €
and $? Just for the sake of making my life more complicated?

Bitcoin have different properties and work better in a lot of cases, so
there is a lot of reason to move from € or to BTC.

Any other digital currency must have decisive advantages against Bitcoin
to supplant it or just share it market place.

And this do not contemplate the fact Bitcoin can be upgraded to have the
new required by the market features its competitor have.


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