August 6, 2012 at 11:18 pm · Reply
If you believe governments are ‘all powerful’ and have ‘technology not available in private sector’ then you have already let them win. A more realistic approach is to view Bitcoin for what it is today, not what ‘might be’ in years down the road.
What it is today is a means to purchase ‘anonymous’ goods and services. It has value today, and will probably have value tomorrow. In this way it is similar to the dollar and everyone here uses dollars everyday even as we recognize the fraud and absolute worthlessness of the digital dollars.
It does something that Gold & Silver cannot do, enables secure transfer of ‘wealth’ over distances digitally and anonymously. Any system involving Gold & Silver depends upon a 3rd party or direct physical exchange. Think of bitcoins as ‘shares of a company’ who’s product is ‘transfer of wealth / accounting’.
In a market of competing currencies absent any government at all, I suspect bitcoin (or something like it) would become the defacto currency. Just like with banks/credit cards… if you rely on the system and we lose power (EMP) you have no money. So unless you are going to store all of your money under a mattress and do all transactions in person you will have your ‘hard money’ in a bank (perhaps 100% reserve) and will rely upon ‘the system functioning’ and having ‘power’ / internet.
With quantum computing comes quantum hash-calculations. Once a ‘breach’ becomes known, the community would have a ‘bank holiday’ and freeze the block chain until a software patch could be applied.
Have some respect for what bitcoin can do, help improve it. It enables more piratical ‘liberty’ today than silver does. I have actually bought goods and services via bitcoin, but cannot say the same of silver despite stacking it for ‘someday’ when the world changes and everyone decides that silver really is money and not dollars or bitcoins.
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