Nobody Understands Cryptocurrency, And That's Ok

[\0xDynamite]

I think Bitcoin does not understand bitcoin.

The four crossroads of "Why Bitcoin is Hard to Understand" is
identical to physical currency:

1) Game theory.
2) Irreproducability
3) Secure transfer where the system needs it.
4) Economic and monetary theory (really part of #1)

What bitcoin NEEDS TO DO is restrict itself to the Creative Economy
(limit itself for purchase and exchange of purely informatic goods,
like news, music, etc.)  and THEN see how bitcoin translates into
physical "real-world" currency.  That is, it makes no sense to compare
or exchange physical currency to bitcoin as bitcoin is not associated
with actual real-world value (like oil, metals -- things that have
intrinsic value and hard to reproduce).

If bitcoin were to become THE only currency for informatic goods on
the internet, exchanged predominantly *virtually*, then it doesn't
matter the "exchange rate". because its value is entirely related to
how people value the informatic goods online.  Perhaps someone will
give 1000 bitcoin for song A, while another will give 1 bitcoin -- the
system will work to equalize and evaluate the virtual goods online.

Here's how I solved this problem in the Pangaia system.  Give 1
bitcoin for each vote given online for whatever 3rd party (not
affiliated with bitcoin) website that allows you to express your
opinion.

UNDERSTAND THIS:

Expressing your opinion is the ultimate unit of work in the virtual
world.  Distribute bitcoins on this basis.  That devalues them, yes,
but then you don't have to expend 100kW of energy to produce them,
maybe call them nanobits.

Then allow them to be traded freely as a neutral currency for the net.
After this gets established, ONLY THEN can you really set a EXCHANGE
RATE for bitcoin with physical dolllars -- because you've tied and
anchored it to REAL WORLD VALUES.

That's the only way to make it work.

Marxos

 Expressing the ou could make the bitcoin like monopoly money and give 1 bit

Marxos

On 10/16/17, juan <juan.g71 at gmail.com> wrote:
> On Mon, 16 Oct 2017 13:53:32 -0400
> grarpamp <grarpamp at gmail.com> wrote:
>
>> https://www.coindesk.com/nobody-understands-bitcoin-thats-ok/
>
> 	uh oh - no, people not understanding the systems they use is not
> 	OK. Aa a matter of fact it is a serious problem.
>
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