BITCOIN as an alternative to regular currency

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gazuty
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I fail to see the necessity for the development of a digital currency by reputable institutions like the Bank of England. We already have access to digital forms of currency through our bank accounts, credit cards, and digital payment systems like tap-and-go and Apple Pay. The majority of transactions in modern society are already conducted digitally, as our money is stored as digital data on bank servers. There seems to be no pressing need to create a new digital currency when our current systems are already functioning effectively.
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Euler
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If you look at the underbelly of it, in theory any central bank could create billions in revenue for very little cost.

I'm surprised banks haven't done it already, as it would be a good way of expunging debts.
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ShaunWhite
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Euler wrote:
Thu Jan 12, 2023 1:26 pm
If you look at the underbelly of it, in theory any central bank could create billions in revenue for very little cost.
I never had you down as a Marxist. ;) Putting the resourses of the state to work for the benefit of the people rather than being in the hands of capitalists or the creators or synthetic currencies makes a lot of sense.
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gazuty
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ShaunWhite wrote:
Thu Jan 12, 2023 2:14 pm
Euler wrote:
Thu Jan 12, 2023 1:26 pm
If you look at the underbelly of it, in theory any central bank could create billions in revenue for very little cost.
I never had you down as a Marxist. ;) Putting the resourses of the state to work for the benefit of the people rather than being in the hands of capitalists or the creators or synthetic currencies makes a lot of sense.
Please elaborate?
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ShaunWhite
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gazuty wrote:
Thu Jan 12, 2023 8:53 pm
ShaunWhite wrote:
Thu Jan 12, 2023 2:14 pm
Euler wrote:
Thu Jan 12, 2023 1:26 pm
If you look at the underbelly of it, in theory any central bank could create billions in revenue for very little cost.
I never had you down as a Marxist. ;) Putting the resourses of the state to work for the benefit of the people rather than being in the hands of capitalists or the creators or synthetic currencies makes a lot of sense.
Please elaborate?
To paraphrase, one Marxist aim is to centralise all instruments of production in the hands of the State which is itself organised for the benefit of the proletariat (workers) rather than the bourgeoisie (capitalists). It's full of holes of course in its purest form but many societies have had guidelines around usury for centuries which isn't that far removed.
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napshnap
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gazuty wrote:
Wed Jan 11, 2023 7:32 pm
I fail to see the necessity for the development of a digital currency by reputable institutions like the Bank of England. We already have access to digital forms of currency through our bank accounts, credit cards, and digital payment systems like tap-and-go and Apple Pay. The majority of transactions in modern society are already conducted digitally, as our money is stored as digital data on bank servers. There seems to be no pressing need to create a new digital currency when our current systems are already functioning effectively.
https://www.youtube.com/watch?v=jlNPyeQWyQI

...and a good comment form comments section: "Cash will be banned. Gold will be banned. Guns will be banned. Then... 'If you want a picture of the future, imagine a boot stamping on a human face - forever." George Orwell.
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gazuty
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Thanks Shaun

Napshnap - we will meet again in the place where there is no darkness.
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Euler
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I think my point was really that the government could get rid of some debt by issuing crypto, which essentially has no value other than the cost of creation. Nice solution.
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ShaunWhite
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Euler wrote:
Fri Jan 13, 2023 7:39 pm
I think my point was really that the government could get rid of some debt by issuing crypto, which essentially has no value other than the cost of creation. Nice solution.
Isn't that just quantative easing?

But I just can't see a time when crypto is stable enough to be a serious currency people use in their day to day life. The economy goes into spasm over 5% annual rate moves let alone that much in a week. You might as well issue 20 sided dice.
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gazuty
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Euler wrote:
Fri Jan 13, 2023 7:39 pm
I think my point was really that the government could get rid of some debt by issuing crypto, which essentially has no value other than the cost of creation. Nice solution.
Inflation
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Euler
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ShaunWhite wrote:
Fri Jan 13, 2023 8:25 pm
Euler wrote:
Fri Jan 13, 2023 7:39 pm
I think my point was really that the government could get rid of some debt by issuing crypto, which essentially has no value other than the cost of creation. Nice solution.
Isn't that just quantative easing?

But I just can't see a time when crypto is stable enough to be a serious currency people use in their day to day life. The economy goes into spasm over 5% annual rate moves let alone that much in a week. You might as well issue 20 sided dice.
It's not a currency, it's just speculation on thin air. Crazy to think people are calling them currencies.
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Euler
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gazuty wrote:
Fri Jan 13, 2023 8:45 pm
Euler wrote:
Fri Jan 13, 2023 7:39 pm
I think my point was really that the government could get rid of some debt by issuing crypto, which essentially has no value other than the cost of creation. Nice solution.
Inflation
True
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Archangel
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The Blockchain is a lot more interesting than Cryptocurrency imo. I think that can revolutionise how transactions are done in future, from financial transactions to contracts and logistics.
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Euler
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It will.

There is a pattern to emergent technology. I've been through many waves and you see good ideas and a lot of hype first. Then things settle down and practical usage models and commercially viable patterns appear from that period after the initial hype. That's where you pick the big winners.

Many times in the past I was too early on these cycles.
sionascaig
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A good way to think of regular currencies and the way a bank creates money is that it borrows money from the future and makes that money available now... A problem comes if that money cannot be repaid in the future, in effect a banking crisis..

Crypto is completely different as Euler says.. You could in effect create bucket loads of currency, having unique digital signatures that is worth zero and sell for an immediate profit... No need to pay it back as it doesn't exist & has zero intrinsic value... Happy days if people are willing to pay money for it though..
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