Topic: Bitcoin as a currency (an economist view/contribution) (Read 774 times)

I understand, till now nobody can travel back in time.

What I am thinking is not starting from scratch, just developing, modifying the software, the protocol or whatever to accommodate the required changes.  Software can be always and continuously modified to perform faster and faster, and cheaper, without re writing the whole application from scratch. This is the software part.

For the hardware, miners can still keep mining and solving the problems as usual using the same hardware.
They might lose some of the profits, but they might gain more if the amount and speed of transaction is increased and more people use it.
 
May be w need to think something like torrents, p2p...
What you think?

Hi'
   Sir after reading all about you i just feel that ,you already know all the aspects about the share market. Bitcoin is also as much as similar like that the only difference is  the currencies.And you are already aware about the risk that held in this field.Do you know something success is always belongs to the risk takers.I am dam sure that you can make a huge profit by investing in this bitcoin by the experience of your investments in share market.It will give you a fabulous retirement days.

Remember the one thing - even though somebody control the situation from the above it'd always be an opponent on his stage. States that would delay the blockchain development will lose to progressive countries. Banks that don't admit cryptocurrency will lose to their world competitors. Those who'd hold on an obscure fiat economy will be like North Corea nowadays.

Reframe "divide and rule" to a new paradigm "decentralize and rule".

I see we are sharing the same understanding. But don’t worry about crypto currencies. It is here to stay, nobody can really stop it. If they thought they have a little potential to stop it they wouldn’t have thought of issuing their own cryptocurrency.

The only challenge I see for now, in general, is the cost of transaction and speed, ease of use, to include everybody, every minor transaction.

If we reached this, it makes no big difference if they keep printing money.

Still hoping developers come in and answer my above question.

56 years old huh wow that's quite inspiring and motivates younger people like me to stay into the crypto world forever.
I was knowing about Crypto from 3 years but came into the community a few months back. I really feel obliged to be in this community where one helps the other and earns side by side. I wanted something like this where I can be the boss of myself and don't have to be under any person.
Bitcoin has fulfilled this dream of mine and made me achieve a lot of things which I can't explain it right now.
I welcome you here and am quite impressed with the older generation people to walk aside the younger ones.

Definitely crypto currencies and blockchain is a revolution and innovation that is going to change everything in everything, finance, trade, investment, banking and above all central banking. To comment on your post, no matter what governments or central banks do, they have only one choice. Admit, adopt and adapt to the new facts that there are non inflationary free crypto currencies. On the other hand crypto developers have to discuss and tackle the issues facing crypto currencies and its functionality. (my second post). The community has to decide what are the targets and priorities.
Based on these priorities development should go.

As an economist, technically, I hate the fact that money gets printed just as a central bank sees convenient. This is another reason I personally wish to see crypto currencies based on the principles of Bitcoin and Satoshi Nakamoto a day to day currency, a currency that allows you to tip a waiter or donate 1 cent to a beggar, a currency you can receive your salary in. But having a for example a Crypto Dollar, or Euro,..etc... that gets issued by a central authority doesn’t mean it is a REAL crypto currency. Though it still can happen I guess.

I am saying above average taking into consideration the whole world population and their level of knowledge and experience because I assume we are talking about a “global” currency Bitcoin, it will presumably be exchanged by or with a poor guy somewhere in a village in a third world country, he might be not able even to read and write, but he still can use a mobile phone, so he should be able to easily install, send, receive Bitcoins.

if we could turn back the clock where the bitcoin wasn't launch at full blast then we could ask the developer about this assumption but now it is too late to change the bitcoin protocol as it coin circulating reach to maturity level as high as 80 percent, and it is not easy to rewrote or re-implement new protocol once the infrastructure had been establish and a huge amount of money was invested to run the bitcoin industry, it is hard to take down and begin again from scratch.

the transaction fee is a sort of service fee from the miners and the witness signer of the the ledger from the blockchain in order to secure your transaction free from hacks and tampering. adding security features of bitcoin takes a lot of cost. If you want sort it out like verification is thru phone or any devices nearby that are bitcoin users are the one who verifies your transaction without the need of miners signatures on the blockchain, that's is what we called off-chain verification. Lightning Network trying to proposed this kind of solution to reduce transaction fees and speed up transaction capacity per second,the only problem is it needs another centralized network or server that need to broadcast or sending the data back to the mining pool and acknowledges the miner that those transactions were verified from the mobile devices but it does violates the bitcoin protocol of decentralization, an off-chain verification is possible but it can be a different entity not related to bitcoin mining.

I would highly appreciate if a developer might enlighten me and answer this question:
Assuming that blockchain or BTC completely ignored privacy, would this make transactions faster, less costly...etc.?
Or it is technically as is?

The goal is to have Bitcoin and crypto as a currency, where everybody has access to, easily cheaply transfer and transact,... etc.

The current situation and problems in my opinion:

2- transaction cost, sending a crypto from someone to another, it is relatively high, so not still convenient to buy a bottle of water or a pizza and it costs the same amount to pay the seller. This simply means the buyer would pay double the price. So, still not convenient as a currency compared to FIAT.

I wonder if this can be sorted out as follows:
All wallets should have a feature like “Ok, this public address is sending to this public address 0.05 USD, let me send with it a private key for this transaction for this amount in particular. Sending through whatever communication, Bluetooth, WiFi, nfc, Sms, whatever. No need for blockchain and mining fees.

Maybe (and here I expect some miners to try to shoot me), maybe we can use wallets already running on thousands of individual mobile phones to do the job of verification. Everybody in the individual users wins. Almost instant, no transaction cost, so it will be convenient to buy a bottle of water with bitcoins.

The receivers wallet may take the senders public address and check it on the blockchain, if it really exists, if it really has the amount transferred. If true, it makes one entry with one single confirmation.


Hopefully I did not offend anybody, especially miners. Miners should think, what profit would be if the world is actually transacting in crypto.

I know many will see the above as nonsense, a few might see an idea, some might agree some might not.

But constructive discussion will always give the fruits.

The problem is not in bitcoin volatility. The problem is that the developers of bitcoin in the pursuit of privacy is not foreseen that the currency management is necessary for its development. No one now can create the conditions to organize the circulation of bitcoin in trade and it makes it difficult to become a full-fledged currency.