The ramifications of blockchain technology?

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Re: The ramifications of blockchain technology?

#801  Postby felltoearth » Sep 22, 2020 1:00 pm

I’m beginning to think “alternative currency” is an overstatement, and it’s actually an alternative method of exchange and investment. And I use the term investment loosely.

And you will have to unpack “artificially devalued” as currency is as artificial as it gets in the true meaning of the word.
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Re: The ramifications of blockchain technology?

#802  Postby OlivierK » Sep 22, 2020 7:36 pm

As far as I can tell, "artificial" devaluation is supply-side, and "real" devaluation is demand-side.
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Re: The ramifications of blockchain technology?

#803  Postby gobshite » Sep 23, 2020 3:35 am

felltoearth wrote:I’m beginning to think “alternative currency” is an overstatement, and it’s actually an alternative method of exchange and investment. And I use the term investment loosely.

And you will have to unpack “artificially devalued” as currency is as artificial as it gets in the true meaning of the word.


What I meant was devaluation outside of regular demand. So manipulation of interest rates, or printing money, for example. Bitcoin isn't subject to these kinds of manipulations.
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Re: The ramifications of blockchain technology?

#804  Postby gobshite » Sep 23, 2020 3:45 am

felltoearth wrote:I’m beginning to think “alternative currency” is an overstatement, and it’s actually an alternative method of exchange and investment. And I use the term investment loosely.


"Alternative currency" covers that. Physical alternative currencies have appeared in the past (and there's almost certainly current cases of it) and tend to be more numerous during times of economic calamity. So while these currencies are an alternative method of exchange and investment, they can often provide something additional. A common use case of physical alternative currency is a local currency that can only be spent in a geographical region. These are created by communities that want to keep consumption/investment focussed within the community. I.e. to reduce the amount of money leaving the community.

Bringing that around to Bitcoin, we need to look at what bitcoin does that normal money doesn't. The common benefits of bitcoin that are suggested are things like a store of wealth, borderless transactions, speedier transactions, and self-sovereignty of your wealth (i.e. decentralisation). Of course, there's also the dark side where anonymity is required for some nefarious reason.

So I think it meets the definition of alternative currency. Whether these benefits are enough to sustain it long term, we'll have to wait and see (or ask JamesT, as he can see into the future).
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How bitcoin COULD change the world

#805  Postby jamest » Oct 10, 2020 12:47 am

What's needed is for a country with balls (in dire straits) to suddenly announce that they are adopting bitcoin as their new currency. They could/might short-term even print paper satoshis (penny bitcoins, basically) to facilitate simple/fast local trade until everyone is prepared/able to transact digitally. Further, within a certain time-frame everyone could swap their $/whatever for the paper satoshis. I know this is feasible because Britain had to do it in the early 70s - exchange (and phase-out) old numeration for new. I mean, there's nothing at all which fundamentally prohibits a digital curency becoming physically tokenized, at least in the short term. I mean, if it's a government-backed currency and the government/banks of that country promise to reimburse your digital wallet when you hand your paper satoshis in to the 'bank', then that works.

If we're imagining poor countries here where a significant percentage of the people will never be able to afford a digital device within the short-to-medium term, then the system would still work because alongside the satoshi notes the government/banks would exchange for your current fiat, they could also issue new and relevant debit and credit cards, though obviously based upon bitcoin. The people who cannot afford a device could thus still function economically with satoshi currency (locally) and with their bank-issued cards (worldly, or cashlessly).

Thus, if there's nothing of practical value to stop even the poorest of countries adopting bitcoin, why wouldn't they do it? It only takes ONE to start the ball rolling. That will be a game changer. Not just for that country. However, notably, the first countries will become the new superpowers, as their wealth will 'explode' once the arrogant half-wit nations of The West & China buy in toooooo late.

Will this happen? Well, given the dire state of the US dollar alongside a significant number of countries already battered by hyperinflation, I imminently expect some desperate 'leader' in any one of numerous potential countries to take the plunge soon, even within the year, because getting in soon would be THE POINT of doing it.
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