I think more what you're worried about is fractional reserve banking rather than "fiat" which means "by decree" or essentially by force of government. If bitcoin or another currency is to take over the world currency, some kind of paper or plastic currency must exist to fill the need for purely cash transactions. "Trusted issuers" could issue paper bills with public key serial numbers on them so that people could check to see if these issuers were practicing FRB and keep them in check, though this would rely on people to actually check with some frequency, and there'd need to be some way to see that more than one bill shared a public key (something like www.wheresgoerge.com).
I highly doubt this would result in the block chain being completely static though as the convenience of electronic currency is very, very high.
Topic: What prevents Bitcoin going fiat? - page 2. (Read 5929 times)
How is this not going to be a problem?
Take e-mail for example. Some people use gmail (hosted messaging). Some people run their own SMTP host, as their needs are different. Others use hybrid -- imap hosting with a desktop application client, a mobile app, and also via the web interface. Others use Outlook and MS Exchange mail server.
There are even niche services that will send all your e-mail to you by fax.
But all of them talk the same protocol underneath to send and receive messages.
Bitcoin is a protocol, for money.
As long as a party is willing to accept your item of value, that item continues working as a currency. If there was the risk of a prepaid card not holding its value, it won't be accepted.
The discussion about the steep learning curve for people getting into Bitcoin have fostered spinoffs like Cassious coins, prepaid cards, Bitcoin checkes and diffferent types of debitcards, to let people adopt Bitcoin more easily. This makes the use of Bitcoins more recognizable to people like their everyday paper money. This however is counter productive to the "educational" element of a pure digital currency. If you buy a prepaid card (i.e. the Walmart type) you don't have to care about the p2p part. Hell you put your trust in the issuer not keeping copies of your cards private key, not the network. If the card are giving you troubles, you can claim your money back. Hell you can just trade your prepaid card itself for goods.
In effect you will have made Bitcoin a fiat currency putting the issuer in the role of bank and government.
The blockchain can be completely static. P2P still shared but only a list of static wallets and their amounts, no miners required.
How is this not going to be a problem? Bitcoin is also a tool to educate yourself and others. Pushing for world acceptance through spinoffs is great but also have a good chance of derailing the idea of a currency as a web of trust between people!
Your comments please
In effect you will have made Bitcoin a fiat currency putting the issuer in the role of bank and government.
The blockchain can be completely static. P2P still shared but only a list of static wallets and their amounts, no miners required.
How is this not going to be a problem? Bitcoin is also a tool to educate yourself and others. Pushing for world acceptance through spinoffs is great but also have a good chance of derailing the idea of a currency as a web of trust between people!
Your comments please
Jump to: