[LINK] Blockchain

[Jim Birch]

Would he know?  The blockchain has great appeal to libertarians because it
doesn't, or apparently  doesn't, require government management control to
work (and, as we all know, government is the real evil.)

However, the practical reality of bitcoin is a running disaster.  Could
anyone commit to a major investment on bitcoin financing?  Would you take a
two year loan in bitcoins, repayable in bitcoins?  You might as well go to
the local casino and drop your cash on black.  It works for drug deals but
anything long term?  I think not.

While it is certain that stable working virtual currencies will appear, it
is completely unnecessary for them to be blockchain-based.  The blockchain
mechanism is mainly desirable because it requires no central authority.
However, a reliable currency is tied to a reliable government.  The US
dollar is not a reliable currency because it is a cool idea (though it is a
cool idea.)  It's fundamental basis is that the US government requires
taxes to be paid in US dollars.  As long as the US government collects
taxes and goes after anyone who misuses the currency - eg by stealing it or
printing their own notes - the value of US dollars is assured.  Moreover,
it value is loosely constrained to the value of the goods and services that
it represents.  (Unlike bitcoin's value which is basically an emotionalized
fantasy.)

Interesting article on government-backed virtual currencies:

https://bankunderground.co.uk/2017/09/13/beyond-blockchain-what-are-the-technology-requirements-for-a-central-bank-digital-currency/

Blockchains have other potential uses for secure distributed communications
but they are unweildy and, even while the chain itself may be wonderfully
secure, that's not how hacking hacks stuff.  It goes after the breakable
parts.

Methinks that CB may be engaging in a bit of futurology.  It's historical
record, especially for technology, is not all that good.

Jim


On 20 September 2017 at 17:46, Jan Whitaker <jwhit at janwhitaker.com> wrote:

> You'll love this.
>
> Chris Berg, IPA now RMIT I guess, just said on The Drum that Blockchain is
> the most important innovation in a century.
>
> Hype much?
>
> Jan
>
>
>
> I write books. http://janwhitaker.com/?page_id=8
>
> Melbourne, Victoria, Australia
> jwhit at janwhitaker.com
> Twitter: <https://twitter.com/JL_Whitaker>JL_Whitaker
> Blog: www.janwhitaker.com
>
> Sooner or later, I hate to break it to you, you're gonna die, so how do
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> ~Margaret Atwood, writer
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