- cross-posted to:
- economy
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- cross-posted to:
- economy
- [email protected]
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Bitcoin isn’t good for making little purchases, firstly because it takes so long to get confirmations, if each block is 10 minutes and you need like 3 blocks to consider it confirmed that’s 30 minutes. But that ties into the second issue which is that you probably don’t want millions of tiny transactions on the Blockchain, you want them processed off-chain and then settled in bulk (to the Blockchain) periodically as a single transaction.
Bitcoin is great for little transactions if you use the lightning network. Sending on the lightning network means instant payments with no confirmation required and absolutely tiny fees. And the only thing that shows up on the blockchain is the transactions to initially start using lightning network and to take your coins back off the lightning network. Transactions made over the lightning network aren’t recorded anywhere other than maybe by the people transacting.
Finally someone who knows what theyre talking about, with an actual valid criticism.
That’s the same way as the economic system works though
Each bank and creditor keeps track of if what they owe each other and then they settle the balancebetween them periodically (depends on the country)
If assume you could do something similar with bitcoin, but you would need an overlay
Let’s not get astray here.
The reason El Salvador stopped using Bitcoin as a legal tender is not because it’s some sort of failed experiment (it had issues, but still), but due to continuous pressure of IMF interested in maintaining a US dollar-centric economy.
El Salvador is reliant on US dollars in its economy, which puts it under heavy US influence. Knowing Salvadoran currency wouldn’t be strong, Nayib Bukele suggested an alternative option - risky, volatile, but free from pressure of other countries and strongly appreciating in the long run. IMF didn’t like it, and that’s where we are.
So, when you cheer Bitcoin not being legal tender anymore, you also cheer US and IMF projecting power over the country.
The IMF wouldn’t give them a credit unless they stopped forcing people to accept Bitcoin as payment, which almost no one was using anyway.
officials ensure that the government will continue betting on this cryptocurrency, whose price currently exceeds $100,000.
“This is good for bitcoin.”
Honestly with the Trump government right now and the pending trade war, this might be good for Bitcoin. It’s supposed to be a store or wealth that you use to buy other cryptos like monero to spend.
This is not good for the environment because crypto mining is second only to AI model training in useless expendenture of natural resources and pollution.
But ironically, and I say this with no joy. This could be good for Bitcoin and that’s bad for us all.
The government, she assured, will continue buying bitcoin and having reserves in this cryptocurrency. According to the National Bitcoin Office, El Salvador has 6,050 bitcoins worth $634.8 million. “President Bukele continues buying bitco
They are still keeping the mass reserves just not forcing it to be accepted as legal tender in stores. Before if someone wanted to pay in Bitcoin you had to accept it, now you don’t have to.
The problem with any new kind of currency no matter what it is will always be controlled and manipulated by the wealthiest individuals who will flood their wealth into that new system.
That’s part of the argument behind using Crypto.
It can be manipulated by people with enough share in it by buying or selling in large quantity, like any other currency, and it can even be manipulated by giving out loans which create temporary duplicates via promissory notes, but it can’t be manipulated by excessive printing by a national institute for the goals of a singular nation.
Much more useful, imo, is that it’s a public multiple ledger system that makes it much more difficult to conduct shady business with and not get caught. The FBI is one of the world’s largest BTC holders because its so incredibly easy to track in investigations of illegal transactions.
Crypto is a massive scam. It has no value. It is just used to obscure fraud.
I mean neither does FIAT currency, U.S. currency is based on taxes , there is nothing that backs it. Majority of GDP is just finance. We need more education on what and how a currency actually works.
