liberty reserve was a payment processor, bitcoin is a (crypto) currency
like a bank is a payment processor and dollar is a currency
Topic: Is there difference between Bitcoin and liberty reserve? - page 2. (Read 1022 times)
What is the difference between Bitcoin and Liberty reserve? Hope Bitcoin will not end up like Liberty reserve?
a very good question
WIKI:Liberty Reserve was a private currency exchange system issued by Liberty Reserve S.A. of San José, Costa Rica. As of May 27th, 2013 it is offline following the arrest of its founder
LR was often used to withdraw funds from bitcoin exchanges
the main difference is that LR was a company,centralised and with an owner
once the owner got arrested the whole LR system collapsed
bitcoin is decentralised,it doesn't belong to anyone and even arrest or shutting down half of the node owners or pool owners will not shut bitcoin network down
LR was a surrogate central bank system,working in parallel and as we all know,central banks don't like compettion to their banking system and the printing press,producing constantly devaluating money
liberty reserve was centralized. it had one single point of failure - the guy who was running it.
the entire point of bitcoin is that there is no single point of failure, it's distributed across thousands of systems so no one act can shut it down short of closing the whole internet.
if it's outlawed in an entire country and every single miner and user is arrested, it carries on operating just fine everywhere else. there are centralization issues with exchanges and so on, but they're not bitcoin itself.
the entire point of bitcoin is that there is no single point of failure, it's distributed across thousands of systems so no one act can shut it down short of closing the whole internet.
if it's outlawed in an entire country and every single miner and user is arrested, it carries on operating just fine everywhere else. there are centralization issues with exchanges and so on, but they're not bitcoin itself.
Interesting question, I wasn't aware of Liberty Reserve until reading this post.
It seems like they very much are the same - because they provide a form of currency outside government control and anonymity in who's making payments for what and to whom.
The difference is that the government has made a lot of positive comments about Bitcoin. Perhaps that's driven by the Finance industry seeing the money that can be made in their involvement in Bitcoin and using their influence to steer the Feds a different direction (e.g., focusing on ending criminal activity rather than the system by which payments are made, which is not just for criminal activity).
Here's an article: http://www.nytimes.com/2013/05/29/nyregion/liberty-reserve-operators-accused-of-money-laundering.html
It seems like they very much are the same - because they provide a form of currency outside government control and anonymity in who's making payments for what and to whom.
The difference is that the government has made a lot of positive comments about Bitcoin. Perhaps that's driven by the Finance industry seeing the money that can be made in their involvement in Bitcoin and using their influence to steer the Feds a different direction (e.g., focusing on ending criminal activity rather than the system by which payments are made, which is not just for criminal activity).
Here's an article: http://www.nytimes.com/2013/05/29/nyregion/liberty-reserve-operators-accused-of-money-laundering.html
What is the difference between Bitcoin and Liberty reserve? Hope Bitcoin will not end up like Liberty reserve?
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