Topic: Are BTC exchanges against Satoshi Paper? (Read 972 times)

Decentralized p2p exchanges will resolve this question. I view the current exchanges as a short term solution. Bit coin was meant to be neutral and free of government interference. We can pretty much transact with it in whatever ways we choose without violating the spirit of bit coin.

Centralized exchanges may end up being more of an interim patch than a permanent solution anyway. There are plenty of upcoming decentralized exchange projects, and I'm sure that whole area will continue to develop over time. NXT have some interesting plans for their 'multi-gateway' which I think already has a working beta for Bitcoin.

Hey you're talking to a guy that bought the idea already, I'm just trying to discuss a potential issue, so you're singing to the choir as they say.

Exchanges can manipulate btc values as much as they establish a real world value as well

So the wise one (satoshi in Japanese) did his best to outline potential flaws such as DISHONEST MINERS can create false values or control creation of coins

The wise one (satoshi) never addressed the obvious off shoot of btc becoming a defacto currency which it now is

So as of this time, btc exchanges that are clearly establishing a value to other currencies and btc exchanges are in a position to be dishonest and manipulate it

Granted they're not a centralized control on the btc itself, but they are creating a value to btc that the wise one (satoshi) never addressed in is paper.

Due to the broad support of btc by many wallets, those wallets are now controlled to some extent by price values a few exchanges are setting

When you have a few exchanges trying to fix a live value to btc, those exchanges are open to manipulation IMO

It could be what is producing the high volatility in btc values itself, artificial manipulation of exchange prices, not the coins themselves

The btc network controls btc itself but the exchanges are in control of values the public and businesses now place upon the btc itself

Again I'm a believer in btc

But I'm looking at the current btc exchanges and shaking my head

Thanks for the bitstamps info

I'm shaking my head HIDDEN WHOIS INFO

Red flag

Canadian info in whois, a us based dover ip, a brit llp on about page

So an exchange HIDING ownership info is a 'major btc exchange'?

Shakes head some more

How people choose to use the bitcoins they have control over is entirely up to them and out of the scope set within Satoshi's paper.

The paper itself is a technical one which ties in nicely to real-world influences and uses. It is not expected that he should provide an exhaustive list of how people could end up using their coins.

Sending coins to exchanges is a risk, as you are trusting somebody else with your assets, and despite how honest they may appear, eventually they can lose you everything that you committed - through choice or otherwise. It is just how people choose to use their coins, as far as Bitcoin as a protocol is concerned, they are spent coins.

Exchanges don't control Bitcoin. Exchanges don't set prices.

I'm not overly fond of the reliance on exchanges and try to avoid using them where possible.  But if you do any trade with altcoins, it's not all that practical to have a separate wallet and download an entire blockchain for every single alt, so exchanges clearly have a role to play for the time being.  Everything specific to bitcoins I'll endeavor to do peer to peer, though.  Centralised exchanges definitely aren't part of the masterplan and we are doing it all wrong to an extent.  Everyone remains hopeful that gifted minds superior to our own will eventually crack the problem of decentralised exchanges and the current centralised ones can gradually dwindle and die off. 

A BTC exchange is not bitcoin, in the same way that piratebay is not bittorrent. Another difference is that you don't have to keep your money in an exchange, and many people on this forum advise against it.


The price is based on supply/demand. They are not against the satoshi paper, just a couple of guys trying to make some profits.
You have to remember that Bitcoin itself is decentralized, it's just you send your money into someone's wallet when you use an exchange - as in, you do not control it anymore.. but the bitcoin network itself is decentralized.


You do not have to use btc exchanges, simply have your own wallet.



The bitcoin network is way more honestly regulated than the others - every transaction is confirmed by multiple nodes if they are valid. Invalid transactions get declined.  The price BTC/USD will always change, as the USD is facing heavy manipulation and inflation.

The exchanges don't control bitcoin, but they are a natural event that has emerged, but they probably wont be needed in the future with decentralised peer to peer exchanges etc but there's always going to be a need for services built on or around the bitcoin tech.

OK

I read the Satoshi Paper and I saw a few minor issues, semantic stuff mostly, the guy is a genius IMO.

That being said the whole Satoshi Paper was against any form of centralized control, and right now we are seeing BTC exchanges control btc.

Now maybe I missed something in Satoshi about how to allow a BTC exchange to manifest or a group of them to appear.

While the concept of a transparent currency was brilliant and today we have a blockchain anyone can download and rebuild from Genesis to verify the 42M + transactions that have taken place.

There is no financial data within the blockchain to show any 'value' in any other currency.

So an outside agency or control system has bootstrapped itself to bitcoin and those are btc exchanges.

So I would like to know what this growing community thinks of btc exchanges setting price values as a whole are, are they against the whole idea of the Satoshi Paper in allowing a form of centralized control outside of bitcoin core to control it. Satoshi Paper took great pain to explain a potential flow in his paper, DISHONEST MINERS.

Yet he failed to mention the inevitable formation of 'btc exchanges' and what could happen if some of the btc exchanges are DISHONEST.

So the whole Satoshi Paper was build upon a new type of TRUST SYSTEM with a possible flaw of DISHONEST MINERS.

Now I'm more concerned about who the heck is running the btc exchanges.

Like I said, I READ THE SATOSHI PAPER and I understand his DISHONEST MINER FLAW in the paper.

But unless I had a brain freeze I don't recall seeing the Wise One (meaning of Satoshi in Japanese) elaborate on potential problems with BTC exchanges trying to centralize a value of the currency.

After all that is what an EXCHANGE DOES, it creates a place to determine market value of a currency/stock/commodity and every exchange is regulated.

Well a prison exchange or drug exchange won't be regulated (LOL), but you know what I mean

Gold/Silver/Platinum exchanges all regulated
Stock exchanges all regulated
Currency exchanges all regulated
Commodity exchanges all regulated

So a short list of the unregulated BTC EXCHANGES who now control btc values

Thanks