Friday, June 23, 2017

Bitcoin reality, a bit of it

Bitcoin News:

Using a credit card to purchase cryptocurrency divorces virtual currencies from many of the core use-values that underpins bitcoin’s basic protocol. The innovation of the blockchain, a trustless ledger that comprises a decentralized ledger that can validate and verify transactions without the involvement of third parties, is made essentially inert by the involvement of credit card companies in a transaction. The transaction is immediately dependant upon a centralized third party, and involves paying fees to the credit card companies, Netcents, and Visa or Mastercard, in order to access technology designed to circumvent the very third parties that are now facilitating the transaction.

Under the current system, yes, traditional banking removes the need for block chain.  But we not going to do traditional banking, we are going to do automated S&L, and in the secure element sandbox, all money is transferable point to point with no central authority and no block chain.

Blockchain is still useful, it is a contract checkpoint.   What is missing in the whole debate is that neither traditional banking nor bitcoiners understand money, prices and savings and loan.  We cannot understand money until we understand the basket brigade theory of goods delivery.

As a reminder to bitcoiners, the original white paper theorized side chains just for this problem, it is in the design boneheads.

No comments: