bitcoin as a global medium of exchange (was Re: Interesting take on Sanjuro's Assassination Market)

[Juan Garofalo]

--On Monday, November 25, 2013 5:50 PM -0800 Sean Lynch
<seanl at literati.org> wrote:

> On Mon, Nov 25 2013, Javier Liendo wrote:
> 
>> isn't the real problem with bitcoin becoming a global currency an
>> issue of how to best manage the potential exponential growth in size
>> of the blockchain? 
>> 
>> i know this is cypherpunks but please explain like i'm five...
> 
> Hopefully Moore's Law will save us, but I actually expect that, should
> Bitcoin continue to grow, most payments will be made through payment
> services of some kind, with the actual transactions only used to deposit
> money in your account with the payment service. This is analogous to how
> gold was used once banking became popular.
> 
> Should these payment services become full-fledged banks, they could help
> with the deflation problem as well by engaging in fractional reserve
> banking,


	There's no 'deflatation' problem. The bitcoin ponzi scheme, I mean crypto
currency is going up because lots of people are buying. 

	so called 'fractional reserve banking' is a non-solution to the
non-problem of deflation. In other words, it's a scam. 


	

> the same way banks did with gold. Many people have a negative
> impression of fractional reserve banking, but in fact most of the
> instability experienced in the US was actually caused by restrictions on
> branching and requirements that banks invest in the debt of states that
> kept defaulting. Bank failures were much rarer in countries without
> these requirements. For example, Canada had *zero* bank failures during
> the Great Depression and only created a central bank for the purpose of
> facilitating international payments, so that Canadian banks and
> businesses didn't need accounts in London.
> 
> -- 
> Sean Richard Lynch <seanl at literati.org>
> http://www.literati.org/~seanl/
> 
>