Why I think the Galt Misses the Point on Decentralized rypto

Posted by CaptainKirk 1 year, 3 months ago to Economics
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I am 100% okay with getting flamed and being called names and told that this is all a big scam.
It has ZERO value, etc. etc. etc.

But please hear me out. In fact, I don't completely disagree with you, I started where you stand!

We need some form of money. Which must be a store of value (unlike the dollar).
And I ASK you to ignore BOTH the current instability of BTC pricing, and the difficulties in using it. [for now].

What were used, in the past, for money? (Glass beads, shells, various coins, etc. etc. etc.)
And what happens over time (People shave the coins (hence the ridges), people counterfeit the paper,
the English even came to an island with a bunch of glass beads. Bankers use inflation, and debt is used
to enslave us).

I am VERY confident that everyone here is a solid believer that GOLD/SILVER would work just fine.
(Even better if it wasn't so dang heavy... But I've seen plastic bills with pressed gold foil inside)...

The point is. WE NEED a money and a CURRENCY (something we actually spend) that we can TRUST.
We cannot Trust: CBDCs, the Dollar, etc. etc. etc.

But MANY people here REFUSE to consider trusting BTC, because it's "software".
The reality is. It is an IMPOSSIBLE to counterfeit currency. It's #1 drawback is that you can lose access to it because of some failure to keep the password. The #2 is the ability to have someone strong-arm your password from you... And I agree...

But in all honesty. I think if the Gulch [Which digital currencies allow to be geographically disconnected], used crypto as part of their "going on strike" from the rigged system... They would realize it solves a few problems.
Far more than it creates.

Yes, it requires Electricity, Internet, and Devices to transact. (Just like Credit Cards do).
And MAYBE we need some level of Coinage. I agree this is a weakness.

But here are the Strengths:
1) It's impossible to counterfeit! EVEN by Governments and by COURTS.
2) Once it's EVERYWHERE, it makes more sense to use it, then to try to go around it. [Chicken/Egg, I know]
3) It's trust is the SIMPLE fact that if you had MILLIONS in it, and you felt the network was at risk. You, too, could setup a few miners, to help keep the network DECENTRALIZED.

FWIW, I am not sold on PoS (Proof of Stake). This is where you put up money and you RISK that money to authenticate transactions... In such a way that if you try to approve (back door) a fraudulent transaction, your are penalized by having the money you Staked taken from you. [Reality: Some players have enough $$$ that they can afford to lose that money in order to "break" the system].

In PoW (Proof of Work), you solve tough math problems, and the first ones done get the reward (more coins).
This is why it is called Mining. You don't get an outsized amount of coins. In fact the difficult and price can be tracked. Miners are EFFECTIVELY Converting Electricity to Coins via a dollar cost averaging function. And this is a TOTAL DEMOCRATIC Approach. You join other miners, and you mine. You make some money for mining. But there are literally TOO MANY Miners for someone to sneak in and start trying to get "Bogus" transactions to be validated. Every ONE of these miners has EVERY TRANSACTION on them. The SECURITY is that the system is spread out. And that a bunch of RANDOM miners will have to validate your transaction.

Even China could not corner the market on mining in such a way as to corrupt it.

Yes. It is ONLY WORTH what the market says it is. BUT it is also back-stopped by what it costs to MINE new BTCs. Because if you are mining it, and it costs you $35,000 to mine 1 BTC. You have ZERO incentive to sell that at a loss. Much less a huge loss.

And I guess that's the final piece. It will be REALLY hard to manipulate when it is fully adopted.
Full adoption means the price fluctuations are gone.

Gold, Silver, Stocks, Bonds. These are all heavily manipulated.

And the final feature. Imagine the government tries to claim they lost 100,000 BTC last year,
and have no idea where it went.

Um, lets trace those transactions... AND Along the way, lets make sure that taxes were paid/collected.
Lets see. You gave a ton to XYZ Corp, what did they deliver? Where's the contract? (Oh, they were overpaid by 10x and didn't notice... LOL).

TBH... That final piece is why we should FORCE our government to use BTC.
And it's what I HATE about ME USING BTC... I don't want my transactions traceable like that.
But I would still want a Credit Card I use for transactions. And then Settle monthly for BTC.
The ONLY thing that would be public is I paid XXX Visa.

I think that's fine. But it still has a choke point. And that's the CC company.
BTC cannot be reversed. You spend it, it is gone. Escrow type services will be huge again.

Anyways. I throw these thoughts at this group.
Here are my questions:
1) If it were WELL ESTABLISHED and STABLE in it's value [changes would reflect the OTHER currencies inflation] and it proved to be a storehouse WOULD you use it then? (Why/Why Not)
2) If it guaranteed we could see where the government money was going, would you want the GOVT to be forced to use it?
3) What is a realistic Alternative? (That can't be counterfeited, and could you leave the country if all of your wealth was converted to that? Safely?)

Thanks in advance. I think this discussion is worth having.
And I have my concerns. But they are not with the safety/security of the asset.


All Comments


Previous comments...   You are currently on page 4.
  • Posted by Ben_C 1 year, 3 months ago in reply to this comment.
    Agreed. When it was backed by gold and silver it was actually worth something. The establishment of the Federal Reserve was the beginning of the end. Currently cash does not leave a paper trail.
    Reply | Permalink  
  • Posted by 1 year, 3 months ago in reply to this comment.
    Obviously. But can you take ALL of your Silver and Gold with you and relocate 1/2 way around the world? [Serious question... Because I have a friend who had a "lot" of physical silver. He was moving because of Covid. He paid a pretty penny to have it picked up, and moved to a Secure Vault some 300 miles from where he moved]

    Finally, have you tried transacting in it recently? (Most people end up selling a chunk, and then dealing in the cash).
    Reply | Permalink  
  • Posted by j_IR1776wg 1 year, 3 months ago
    ") It's impossible to counterfeit! EVEN by Governments and by COURTS."

    Could government employees control access to the Internet and thereby keep individuals from using their holdings for commerce?
    Reply | Permalink  
  • Posted by 1 year, 3 months ago in reply to this comment.
    EMPs are typically LOCAL events.
    In our case (B/C they didn't let Trump fix it, and he recognized it, and tried!)... It would take down our country.

    The point was that the EMP would have to take down ALL Miners everywhere.

    YES. If that happens. Guess what... The physical gold you are sitting on is pretty much toast as well. You are talking a Mad Max scenario. But we are knocked back to the stone ages at that point. I think the LAST thing you are going to worry about is CURRENCY. Only barter will be happening...
    Reply | Permalink  
  • Posted by mhubb 1 year, 3 months ago in reply to this comment.
    after the EMP, it will take years, if not decades to recover

    watch the British movie "Threads" or read the Wiki summary
    hint, it makes "The Day After" look like Mary Poppins
    Reply | Permalink  
  • Posted by 1 year, 3 months ago in reply to this comment.
    Actually, BTC is protected from EMP.
    That's the purpose of miners being decentralized and spread throughout the world.

    And your can (and should) print your "keys" and store them safely...

    After the EMP, you can log back in, and have full access to your money. Spread across millions of miners throughout the world.

    Finally, mylar bag. Put your device in there.
    In fact, your car keys should be placed in a faraday cage so they don't steal your car with a repeater... LOL
    Reply | Permalink  
  • Posted by 1 year, 3 months ago in reply to this comment.
    Sorry, BTC is Bitcoin. (Thank you for pointing that out). Apologies.

    And it uses PEOPLE (Miners) throughout the world to do the transactions INSTEAD OF USING Banks that are centralized, and can BLOCK and STEAL your money, or prevent you from sending it to places they don't like.

    BTC allows us to get the bankers out of the money system! And that's EXACTLY What I feel we need!
    Reply | Permalink  
  • Posted by mhubb 1 year, 3 months ago in reply to this comment.
    paper has no value except the faith we have in it

    how much faith do we have in the federal government right now?
    Reply | Permalink  
  • Posted by $ 25n56il4 1 year, 3 months ago
    I wish I knew what you are talking about it sounds interesting..,.I don't know what BTC is. And all this stake holder business. Speak English and I can understand that. N
    Reply | Permalink  
  • Posted by Ben_C 1 year, 3 months ago
    This discussion is way over my head. At age 79 I suspect these issues will be in the forefront after I am gone. For me - cash is king. That said - anything that will make the federal government more transparent is something I can support.
    Reply | Permalink  
  • Posted by mhubb 1 year, 3 months ago
    some form of exchange is needed

    but any form of paper if just worthless
    one based on computer paper doubly so
    after the EMP or Solar Flare
    Reply | Permalink  

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