[2014-07-26] Why Bitcoin May One Day Split Into Black and White Coins

Brooker

sr. member

Activity: 274

Merit: 250

Quote from: Kprawn on July 28, 2014, 09:25:35 AM

A fork will only happen, if two groups support two different changes to the bitcoin protocol. right?

The group supporting the "centralized" protocol will no longer adhere to the "Satoshi white paper" specifications, and can thus no longer be called "Bitcoin"

In my opinion it would be a coin on it's own. {Alt coin} It will cause confusion and a divide in the bitcoin community.

Bitcoin have to be decentralized, to be defined as Bitcoin. Wink

Exactly. In fact, I think people have already tried to or have wanted to do something similar with colored coins or creating their own alt coin on top of the blockchain. It's pointless but people are free to do it if they wish and I doubt it'll take off.

Kprawn

legendary

Activity: 1904

Merit: 1073

A fork will only happen, if two groups support two different changes to the bitcoin protocol. right?

The group supporting the "centralized" protocol will no longer adhere to the "Satoshi white paper" specifications, and can thus no longer be called "Bitcoin"

In my opinion it would be a coin on it's own. {Alt coin} It will cause confusion and a divide in the bitcoin community.

Bitcoin have to be decentralized, to be defined as Bitcoin. Wink

Dogtanian

hero member

Activity: 756

Merit: 500

Quote from: ajareselde on July 26, 2014, 05:03:24 PM

Quote from: colinistheman on July 26, 2014, 02:22:47 PM

Quote from: MegaHustlr on July 26, 2014, 01:34:10 PM

I very much doubt this will happen. Why is it even needed? Isn't pretty much all money dirty in some way or another. I'd love to see this happen with fiat money Cheesy

.

Agreed. This article is one big, hot, steaming pile of FUD.

I can't believe a news article is being based off a reddit thread as its source. Seriously, that's where that entire article came from.

Since there was, and there allways will be a way to mask/mix transactions, i seriously doubt this will happen.
I understand the idea behing this, but i doubt it will be worth the trouble.
Definetly seams like more FUD than authentic threat tho.

I'm sure it could theoretically happen, but people would need special wallets which would only accept certain coins, but it's a silly and pointless idea and hardly anyone would use it.

Swordsoffreedom

legendary

Activity: 2800

Merit: 1115

Leading Crypto Sports Betting & Casino Platform

Quote from: gbooz on July 27, 2014, 05:34:01 AM

It is fashionable to write about the BTC in press. But very rarely you can read something really interesting. Usually it is junk, like this article.

It could very well be, lot of fluffy articles but I'm guessing its more from people who don't really get Bitcoin yet but just need to write some headline on it.

gbooz

newbie

Activity: 56

Merit: 0

It is fashionable to write about the BTC in press. But very rarely you can read something really interesting. Usually it is junk, like this article.

Swordsoffreedom

legendary

Activity: 2800

Merit: 1115

Leading Crypto Sports Betting & Casino Platform

Fungibility is important coins cannot be split into black or white coins

Forcing regulations on bitcoin could divide the digital currency into two camps: coins that are regulated and managed by a government or central agency, and coins that remain pseudonymous and decentralized. White coins and black coins.
Implies that they can be divided in the first place.
But my dollar is the same as your dollar so that doesn't apply in Bitcoin as well.

ajareselde

legendary

Activity: 1722

Merit: 1000

Satoshi is rolling in his grave. #bitcoin

Quote from: colinistheman on July 26, 2014, 02:22:47 PM

Quote from: MegaHustlr on July 26, 2014, 01:34:10 PM

I very much doubt this will happen. Why is it even needed? Isn't pretty much all money dirty in some way or another. I'd love to see this happen with fiat money Cheesy

.

Agreed. This article is one big, hot, steaming pile of FUD.

I can't believe a news article is being based off a reddit thread as its source. Seriously, that's where that entire article came from.

Since there was, and there allways will be a way to mask/mix transactions, i seriously doubt this will happen.
I understand the idea behing this, but i doubt it will be worth the trouble.
Definetly seams like more FUD than authentic threat tho.

colinistheman

hero member

Activity: 875

Merit: 1003

Quote from: MegaHustlr on July 26, 2014, 01:34:10 PM

I very much doubt this will happen. Why is it even needed? Isn't pretty much all money dirty in some way or another. I'd love to see this happen with fiat money Cheesy

.

Agreed. This article is one big, hot, steaming pile of FUD.

I can't believe a news article is being based off a reddit thread as its source. Seriously, that's where that entire article came from.

MegaHustlr

hero member

Activity: 601

Merit: 500

Vote 4fryn :)

I very much doubt this will happen. Why is it even needed? Isn't pretty much all money dirty in some way or another. I'd love to see this happen with fiat money Cheesy

.

cbeast

donator

Activity: 1736

Merit: 1006

Let's talk governance, lipstick, and pigs.

Quote from: justusranvier on July 26, 2014, 12:42:22 PM

Quote from: cbeast on July 26, 2014, 12:37:33 PM

People would shop with the local currency and save with Bitcoin. I'm not saying they are right to do this, that's just how they roll.

That's what a naive interpretation of Gresham's Law would suggest, sure.

Or they will invest in stocks, mutual funds, or even municipal bonds. I'm not invoking Gresham's law at all. This is about savings, not currency.

justusranvier

legendary

Activity: 1400

Merit: 1009

Quote from: cbeast on July 26, 2014, 12:37:33 PM

People would shop with the local currency and save with Bitcoin. I'm not saying they are right to do this, that's just how they roll.

That's what a naive interpretation of Gresham's Law would suggest, sure.

cbeast

donator

Activity: 1736

Merit: 1006

Let's talk governance, lipstick, and pigs.

I see it as an evolutionary thing. I agree that price between Black and White will decouple with Black winning. That's the same thing that would happen if a sovereign issues a PoS cryptocurrency and it is traded on the open exchange. People would shop with the local currency and save with Bitcoin. I'm not saying they are right to do this, that's just how they roll.

justusranvier

legendary

Activity: 1400

Merit: 1009

There's a kind of static thinking that leads its practitioners into logical errors, such as assuming that punishment works to create compliance.

In all cases punishment creates fake compliance in the moment, followed by more sophisticated circumvention in the long term.

This is why punishment is a self-defeating strategy - all it leads to is infinite escalation.

justusranvier

legendary

Activity: 1400

Merit: 1009

Quote from: cbeast on July 26, 2014, 12:20:13 PM

"I would like to buy your product. Do you take Black Coins? You do? You are under arrest."

There's a technological solution for that.

But even without it the empirical evidence is that sting operations have limited effectiveness once disobedience reaches a critical mass.

They could be arresting everybody who operates of the Blue Dollar exchange rate in Argentina, but it wouldn't work. They'd have to arrest the entire population, and before that happened the cops would just start disappearing on the job.

cbeast

donator

Activity: 1736

Merit: 1006

Let's talk governance, lipstick, and pigs.

"I would like to buy your product. Do you take Black Coins? You do? You are under arrest."

gbooz

newbie

Activity: 56

Merit: 0

It depends what the word "regulation" means in the real life. If they talk about paying taxes - the businesses are already split into those who are "white" and those who are "black". And this is not the BTC regulation problem.

justusranvier

legendary

Activity: 1400

Merit: 1009

Quote

Black coins would be the remaining bitcoins that don't fall into this loop—the unregistered coins operating free outside the system. As the theory goes, these black coins would be harder to maintain and more versatile to use, and could grow more valuable than their traditional counterparts over time.

...which is exactly why such a scheme won't last.

The increasingly restricted govcoins will be effectively be removed from the supply of actual Bitcoins, causing an exchange rate between then that will become increasingly unfavourable to govcoin holders.

You'll see a situation in the US like there is with Argentina - where there is an official (fabricated) USD-ARS exchange rate which virtually nobody uses, and the real market rate which you can only get in the black market. Media scare stories notwithstanding, regular people have no aversion to operating in the black market when it's favourable to do so.

Regulated Bitcoin businesses will whither and die, while their black market counterparts will flourish.

Eventually the institutions holding the govcoins will get increasingly desperate to get the higher black market exchange rate for their coins, so they'll arrange for them to be "stolen" by Chinese/Russian/Martian hackers.

gbooz

newbie

Activity: 56

Merit: 0

"The white coins would be currency that's circulated through the regulated system; black coins would be coins still off the authorities' radar"... I think you can say the same about any currency.

By the way, who are "those that want to honor bitcoin’s cyberpunk, anti-establishment roots" and are against the "mainstream adoption" of BTC?

cr1776

legendary

Activity: 4060

Merit: 1303

It won't divide bitcoin, it will fork it into bitcoin and something that is no linger bitcoin, a regulated-government-alt-coin.

epere

sr. member

Activity: 364

Merit: 250

http://motherboard.vice.com/read/why-bitcoin-may-one-day-split-into-black-and-white-coins

Rumors are swirling that as governments move to integrate and legitimize bitcoin, it could have a divisive and lasting effect on the virtual payment system. Forcing regulations on bitcoin could divide the digital currency into two camps: coins that are regulated and managed by a government or central agency, and coins that remain pseudonymous and decentralized. White coins and black coins.

Topic: [2014-07-26] Why Bitcoin May One Day Split Into Black and White Coins (Read 1646 times)