Yes its true that money will follow the path of least resistance.
Yes the exchange can be decentralized.
But at the end of the day, you will still have to convert to USD or whatever currency, to pay a power company. If BTC is anyway dependent on a centralized currency for its existence, it is effectively as good as the centralized currency it must be converted to.
Topic: Bitcoin Major Weakness (Read 1358 times)
http://bitcoinweekly.com/articles/anonymous-money-needs-an-anonymous-exchange
The solution? Try to decentralize it.
The solution? Try to decentralize it.
Give it a try
This weakness is the exchangers who convert cash to e-currency and e-currency back to cash again. “Authorities” target these exchangers and the system fails (see the story of e-gold.com). If the “authorities” do not shut them down they then regulate them and privacy is eliminated (see goldmoney.com).
Bitcoin must overcome having to be converted through an exchanger.
Bitcoin must overcome having to be converted through an exchanger.
money will follow the path of least resistance. if it is easier for me transact using bitcoins than it is for me to use a payment network (visa / mc / mpay / paypal) or the banking system (ach / sepa / bank wire) for purchasing goods, services and investments then i will use bitcoins instead.
the weakness exists in the monetary systems that self-impose more resistance than that found when transacting using bitcoins.
This weakness is the exchangers who convert cash to e-currency and e-currency back to cash again. “Authorities” target these exchangers and the system fails (see the story of e-gold.com). If the “authorities” do not shut them down they then regulate them and privacy is eliminated (see goldmoney.com).
Bitcoin must overcome having to be converted through an exchanger.
Bitcoin must overcome having to be converted through an exchanger.
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