Sidenote: What do you think of cryptocurrency (e.g. Bitcoin, Ethereum)? This market space has exploded this year, and of course one of its big dreams is replacing the fiat system, which seems related to what you are saying here. By having decentralized currency, would that help achieve your goals?
This is probably going to be more fun than you really wanted, Scorch.
Cryptocurrency doesn't solve any of the problems of money. Nor does it create any interesting new problems. It is the fiscal equivalent of grasping at straws. That are tied to anvils.
Yea, I think I do know what you mean. The main issue right now is volatility, who wants to pay for something in bitcoin if the price is $4000/coin last month and $6000/coin this month (or vice versa).
But there are other options that are trying to solve this.
Aside from this, I do like the ideas of not being able to trace, and no central authority.
What do you think the issues are?
I think the main issue is that currency is a social fiction and operates because people believe in it. People being pack-based primates, the vast majority of them will only believe in a currency backed by a government of some kind.
It's a non-starter.
Besides the question of perceived legitimacy, cryptocurrencies require infrastructure that will go away without state-level investment and maintenance. Without the internet, there is no such thing as cryptocurrency, and without international regulation and governance, there is no internet. Also, the idea that Bitcoin transactions are "untraceable" is a myth. Every transaction is stored in the blockchain -- which means every bitcoin you deposit or withdraw from your wallet can be tracked directly to you if you are discovered to own the wallet in question. You can do various things to obfuscate ownership (multiple wallets, etc) but bitcoin is laundered just like cash is, for the same reasons.
That's a good point, without the internet this all fails. But boy if that happened, I think the people would actually rise up, but who knows.
I am aware of the how to trace BTC, other forms like say Zcash do better here, and Ethereum is working to implement some of their tech (z-snarks) and Zcash is looking to upgrade (z-starks).
I do think that crypto-currency will never replace fiat, in the same way that movies didn't replace books. We will have both, and they will all have their use cases.
For developing countries, crypto could really be a boon. Or even a place like Venezuela (hyper-inflation) or India (they took back all those paper bills).
Either way, this market is big and growing. Its over 160 Billion now. Last year it was less than a billion. I imagine it will hit a trillion in 2-5 years or so, which means, invest if you can and believe in it.
But I really wasn't trying to take over Cain's thread, so we can stop or create a new one.
