Bizarre Shadowy Paper-Based Payment System Being Rolled Out Worldwide(ledracapital.com)
ledracapital.com
Bizarre Shadowy Paper-Based Payment System Being Rolled Out Worldwide
http://ledracapital.com/blog/2014/2/17/bitcoin-series-19-bizarre-shadowy-paper-based-payment-system-being-rolled-out-worldwide
315 comments
I don't think it will get popular. It needs too much infrastructure for emission and tracking. You will need to manually find a way to get to the right amount using such a restricted set of values [1]. Additionally, you cannot make backups and it is very easy for lose or destroy some of these "bills". It's a nice idea, but there is not a chance it will gain value. I don't think it's worth investing any real money in it.
[1] https://en.wikipedia.org/wiki/Change-making_problem
[1] https://en.wikipedia.org/wiki/Change-making_problem
The article is idiotic and disingenuous. Paper money didn't attempt to replace coin in one fell swoop. Paper money evolved from letters of credit which make perfect sense, and bitcoin fundamentally relies on similar concepts anyway.
You can't buy something online by just anonymously transmitting credits into an account -- who gave us the money? what do they want? You fill in an order form, a bunch of stuff happens, you get a receipt and a product and money gets transferred at some point. Very little of that is the currency transaction. You needed to generate a letter that said I want X and I'll pay you Y, then you paid Y and sent confirmation of the money transfer, and so on.
The bitcoin bulls think that Credit Cards are a terrible way to buy things because they charge too much for what they do (and their security sucks). This may be true, but bitcoin is only solving the easiest part of the problem. Banks can already transfer money around cheaply and securely. Indeed even market transactions are so fast and inexpensive that high speed trading is now a huge economic force.
The fact is that credit cards (a) let you buy stuff on credit, (b) provide transactional support allowing commerce to proceed smoothly, and (c) already work. A credit card is merely automated checking with overdrafts, which is a direct descendant of the letter of credit (from which cash evolved), which is in fact a more fundamental method of trading than barter. (Tracking people's accounts is the reason writing was invented.)
You can't buy something online by just anonymously transmitting credits into an account -- who gave us the money? what do they want? You fill in an order form, a bunch of stuff happens, you get a receipt and a product and money gets transferred at some point. Very little of that is the currency transaction. You needed to generate a letter that said I want X and I'll pay you Y, then you paid Y and sent confirmation of the money transfer, and so on.
The bitcoin bulls think that Credit Cards are a terrible way to buy things because they charge too much for what they do (and their security sucks). This may be true, but bitcoin is only solving the easiest part of the problem. Banks can already transfer money around cheaply and securely. Indeed even market transactions are so fast and inexpensive that high speed trading is now a huge economic force.
The fact is that credit cards (a) let you buy stuff on credit, (b) provide transactional support allowing commerce to proceed smoothly, and (c) already work. A credit card is merely automated checking with overdrafts, which is a direct descendant of the letter of credit (from which cash evolved), which is in fact a more fundamental method of trading than barter. (Tracking people's accounts is the reason writing was invented.)
Ever since POS hacks on Target and other retailers I've completely switched to cash only. Not only can't you be tracked, something I'm not sure I care about, but it reduces the chances of somebody stealing your card info.
And I only use wells fargo ATMs, because they have a nice green glowing card input, so you know nobody put a malicious card scanner on the ATM.
It's a complete reversal from a few years ago where I wouldn't carry cash and wouldn't go anywhere that was cash only. Going cash only also reduces the fees for stores where you buy things.
Cash is the way to go, despite all of our technology.
And I only use wells fargo ATMs, because they have a nice green glowing card input, so you know nobody put a malicious card scanner on the ATM.
It's a complete reversal from a few years ago where I wouldn't carry cash and wouldn't go anywhere that was cash only. Going cash only also reduces the fees for stores where you buy things.
Cash is the way to go, despite all of our technology.
This article is entertaining, interesting and relevant. Humans are exceptionally good at rationalizing their biases, especially if they involve trust, and interest is required to alter those biases in a positive way. The biggest challenge for cryptocurrencies today is raising interest and trust in the general population. We can best effect that by working hard to raise interest in cryptocurrencies in a positive way.
This is more commonly known as "marketing".
This is more commonly known as "marketing".
My issue with fluff pieces like this is that there are plenty of established tools in our lives that would not be available if they started out today. Acetaminophen (or Tylenol by it's brand name) is often touted as a drug that would never pass modern FDA regulations if it were introduced today due to it's issues with liver toxicity and link to Reye's Syndrome.
We make products and services with what we have available at the time, that doesn't necessarily mean that they are an indefinite solution, nor does it mean that we are going to hold our archaic solutions to the same standard we do with our new and improved solutions.
We make products and services with what we have available at the time, that doesn't necessarily mean that they are an indefinite solution, nor does it mean that we are going to hold our archaic solutions to the same standard we do with our new and improved solutions.
[This is satyre, imagining cash introduced now, and mocking BitCoin's critics. Some ring true, some miss the two-sided market issues behind adopting new payment forms.]
To be honest, I’ve been in Nordic countries for a year (where all transaction are card-based, and there is no minimum amount for payment) and that situation rung surprisingly true — especially after yesterday, when I was facing a coat valet who was expecting a ten crown in cash.
To be honest, I’ve been in Nordic countries for a year (where all transaction are card-based, and there is no minimum amount for payment) and that situation rung surprisingly true — especially after yesterday, when I was facing a coat valet who was expecting a ten crown in cash.
Our currently existing currencies evolved over time. Central banking and fiat currency were institutions delivered by liberal democracies by the process of public debate.
They were not hair-brained ideas established by anonymous individuals engaged in private debate outside of the forums of democracy.
Look, I know all of you are very excited about these experimental economic and political systems, but please realize that the existing world that you are "suffering" under was mainly developed as a slow process of evolution.
Most extreme revolutionary ideas take a long time to work their way in to the existing societal structures and way of life. When they're quickly forced on to people, all fucking hell breaks loose.
So for fucks sake, get some balance and control your zealotry, people!
And read some history books! The future is built from the past no matter how long or hard of a process that seems to be. Go with the flow!
Engage with other people. Engage with the existing institutions. Even if it is a better idea, there are billions of people who rely on the current system in ways that you can't predict.
They were not hair-brained ideas established by anonymous individuals engaged in private debate outside of the forums of democracy.
Look, I know all of you are very excited about these experimental economic and political systems, but please realize that the existing world that you are "suffering" under was mainly developed as a slow process of evolution.
Most extreme revolutionary ideas take a long time to work their way in to the existing societal structures and way of life. When they're quickly forced on to people, all fucking hell breaks loose.
So for fucks sake, get some balance and control your zealotry, people!
And read some history books! The future is built from the past no matter how long or hard of a process that seems to be. Go with the flow!
Engage with other people. Engage with the existing institutions. Even if it is a better idea, there are billions of people who rely on the current system in ways that you can't predict.
Amazing post! I wonder why everyone is called Mike Smith in the article though ? Mike Smith - VP of this, Mike Smith - a tourist, Mike Smith - etc. ?
Something else that wasn't covered is that cash is also dirty and carries grime and infections. Ideally you should wash your hands before you eat if you handle any cash. (this is less of a problem with laminated/plastic notes like the CAD or EUR)
Imagine a super virus propagating and killing people through cash. Ouch!
Something else that wasn't covered is that cash is also dirty and carries grime and infections. Ideally you should wash your hands before you eat if you handle any cash. (this is less of a problem with laminated/plastic notes like the CAD or EUR)
Imagine a super virus propagating and killing people through cash. Ouch!
Sounds like a great idea. I'd love to get some of this "cash" stuff everyone keeps talking about.
go home bitcoin -- you're drunk.
bank notes are a very simple system, so simple it has been used for over a thousand years.
bank notes are a very simple system, so simple it has been used for over a thousand years.
I Can Barely Draw webcomic has recently had a number of comincs in the same vein as this, starting here:
http://www.icanbarelydraw.com/comic/2565
http://www.icanbarelydraw.com/comic/2565
This reminded me of the fact that I havent handled, or even touched, real paper money for at least a year now. Here in Iceland paper currencly is slowly being phased out, and has been for a few years.
This is the premise behind the subreddit r/ActualMoney
Satire is an interesting way to analyze things, especially in this case.
Satire is an interesting way to analyze things, especially in this case.
Obviously hyperbolic and not a perfect comparison, but gets enough right to be pretty damn clever. The "hardware wallets" security flaws and anonymity facilitating criminals are particularly enjoyable.
The more policy-oriented economic points aren't nearly as strong, but overall, I thoroughly enjoyed it.
Just to be clear: I like Bitcoin a lot, but I don't think it will ever replace national currencies. I just enjoy pointing out the hypocrisy of a lot of bitcoin detractors.
The more policy-oriented economic points aren't nearly as strong, but overall, I thoroughly enjoyed it.
Just to be clear: I like Bitcoin a lot, but I don't think it will ever replace national currencies. I just enjoy pointing out the hypocrisy of a lot of bitcoin detractors.
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I don't know if anyone remembers Bob Newhart standup shtik, but this article (abridged/down-sized) would fit right in there...
Bitcoins (and others) aren't backed by a government. One of the major exchanges used to trade Magic the Gathering cards (You know, for kids!). Bills also have serial numbers that provide some amount of traceability, at least between Federal Reserve branches and banks.
I'll take any unwanted bills. :)
they say that is why they sink the Titanic, on board was all the powerful people that opposed the creation of the Fed, (I personally don't think an iceberg can do that), but anyway one year later the Fed was born.
What a circle jerk.
The good.
Money is good, in any form. Banks are good, they help allocate resources in a capitalist economy. Central banks are good, they can help other banks in need.
The bad.
Fractional reserve banking is robbery. Inflation is robbery. Printing money is robbery.
The ugly.
Government, the fed, banksters, they are a maffia, a band of thugs writ large.
Money is good, in any form. Banks are good, they help allocate resources in a capitalist economy. Central banks are good, they can help other banks in need.
The bad.
Fractional reserve banking is robbery. Inflation is robbery. Printing money is robbery.
The ugly.
Government, the fed, banksters, they are a maffia, a band of thugs writ large.
Bitcoin handles 7 transactions a second on a good day, has no reliable institutional actors, and I can neither pay taxes nor satisfy court judgments with it. It is an impressive proof-of-concept for decentralized trust in cryptosystems, but it is hardly a currency.