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Director12

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21/01/18

17:43

Post #: 30448915
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Originally posted by cgt2009 ↑

Tim, imagine if FIAT and all traditional currencies were replaced by Bitcoin (whereby there would be no more than 21 million Bitcoin on issue):

1. Can you explain how a factory who wants to expand production can do that without having enough Bitcoin in the bank? Can it borrow Bitcoin or participate in an ICO (which contradicts the tennents of Bitcoin i.e. not to inflate)?

2. If this factory can borrow Bitcoin that calls for the issue of new Bitcoin beyond the 21 million limit, does that mean all Bitcoin holders need to vote on it (this is how decentralisation works, right)?

3. How does Bitcoin handle external financial and economic shocks in which expansionary economic or monetary policy is required to avert massive job losses? Is this another vote by Bitcoin holders to increase the 21 million limit?

Remember, a vote to increase the limit, dilutes the wealth of holders. How do you reconcile the self-interest of holders with the needs of the wider economy and society in a world of decentralisation?

Rest easy Tim, these are rhetorical questions because there are no easy answers to these. Bitcoin is too inflexible for these scenarios.

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Other cryptocurrencies are more flexible and can do these things.
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