[LINK] Blockchain

[Kim Holburn]

> On 2017/Sep/21, at 10:31 AM, Jim Birch <planetjim at gmail.com> wrote:
> 
> 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.  

On the contrary, to have any kind of trust that is not based on government is pretty amazing.

> Could anyone commit to a major investment on bitcoin financing?  

Well, people have been.  Mostly Chinese people. 

> Would you take a two year loan in bitcoins, repayable in bitcoins?  

That's the same as a loan in any currency other than your own.  

> 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.

I'm not sure anyone uses bitcoin for that at the moment, it takes too long.    Monero is the current cryptocurrency of choice for that, I believe.  

> While it is certain that stable working virtual currencies will appear,

As long as the total value of any kind of currency is small, it is going to be volatile.  That will never change.  It's why people like Soros can destabilise a whole nation's currency.  It's why your US currency is so stable.  Effectively stable cryptocurrencies have already appeared.  

> 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.  

We trust a particular kind of paper money because that government has proved trustworthy so far?

> (Unlike bitcoin's value which is basically an emotionalized
> fantasy.)

Actually, it's based on mathematics.

> 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.

There is a lot of hype, there is also something happening that no-one thought possible.

> 
> 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
>> you fill in the space between here and there? It's yours. Seize your space.
>> ~Margaret Atwood, writer
>> 
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-- 
Kim Holburn
IT Network & Security Consultant
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