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by dragonwriter 4809 days ago
> BUT, if the project becomes mainstream as the dollar is today, the people of the earth will have a monetary system that doesnt allow taxation through inflation, with no banking monopolies, and globally available.

First: inflation isn't equivalent to taxation (it transfers wealth from net creditors to net debtors, not from everyone else to the government.) [It also, at moderate levels, promotes investment and, thereby, economic growth.]

Second: as consensus among those who control a sufficient portion of the network can evolve the bitcoin protocol, its not actually immune to having a privileged class impose monetary policy.

Third: Except by replacing some functions of "bankers" with those of "miners", I'm not sure how Bitcoin gets away from any "banking monopolies" that actually exist.

> Isnt that a system that "facilitate transactions and make the economy as a whole rich"??

No, it would (assuming that the features which make inflation impossible were maintained) be a system which undermines the features that were introduced to encourage productive development (and, therefore, "make the economy as a whole rich") with deflationary features which have the opposite effect.

1 comments

"as consensus among those who control a sufficient portion of the network can evolve the bitcoin protocol"

Does this refer to the 51% effect? Isn't the solution to that for other people to simply start mining?