Ripple SCAM: You *do not* own BTC or USD, you own debt that will collapse - page 4.

TTBit

legendary

Activity: 1137

Merit: 1001

Quote from: cdog on April 17, 2013, 06:40:36 AM

Ripple will fail because $1 in debt is not worth $1, its worth less.

With this logic, paypal wouldn't exist, because $1 in my pocket is worth more than $1 at paypal. Paypal exists because there is utility in moving that $1 when physical transfer is not practical.

cdog

hero member

Activity: 1036

Merit: 500

Ripple will fail because $1 in debt is not worth $1, its worth less.

dadrizforshizz

newbie

Activity: 42

Merit: 0

people are paying good bitcoins for ripples and getting ripped off in the process (pun intended? lol)

crazy_rabbit

legendary

Activity: 1204

Merit: 1002

RUM AND CARROTS: A PIRATE LIFE FOR ME

I'd use it to owe people beer. Not a house.

zby

legendary

Activity: 1594

Merit: 1001

I guess there will be cases like this - when people default and cause others to default, but it is easy to isolate yourself - you just need to limit the debt amounts of your friends that you are willing to cover (and choose your friends wisely).

But I think that the Ripple guys do need to think a bit more about defaults and setting up new accounts in the network.

manface

full member

Activity: 126

Merit: 100

It is based on human trust. Seems ridiculous to me as you can invent USD amounts that you have.

🏰 TradeFortress 🏰

vip

Activity: 1316

Merit: 1043

👻

Updated title.

🏰 TradeFortress 🏰

vip

Activity: 1316

Merit: 1043

👻

Quote from: 🏰 TradeFortress 🏰 on April 17, 2013, 01:22:31 AM

Because Ripple lets you send debt.

You can't send a BTC through ripple. You can send a "user rEckWuf927y3fu9 promises to pay 1 BTC when you redeem this coupon" BTC through Ripple.

Ripple is closed source and centralized, and as it is debt based you are going to end up seeing your "money" and "bitcoins" disappear as the debtors default.

What happens when user rEckWuf doesn't honor the BTC debt he sent? Dominios collapse. People who have trusted people who have trusted people who have trusted [..] people who have trusted rEckWuf is out of their coins - this is because of their literally infinite "web of debt" system. There's a reason why WoT works with trust, not debt.

Even if you trust people you know in life, if they trust people who either trusted someone that defaults, or trusts someone that either trusts someone who defaults or trusts someone that either [..]

and here you can see a sufficient enough default will end up with all "USD", "EUR", "BTC" vanished into thin air. Seriously, it is a disaster waiting to happen.

Topic: Ripple SCAM: You *do not* own BTC or USD, you own debt that will collapse - page 4. (Read 5340 times)

Topic: Ripple SCAM: You do not own BTC or USD, you own debt that will collapse - page 4. (Read 5340 times)