Re: Blockchain = Powerful Tool for Keynesian Monetary Policy
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Let's pose the problem another way. Suppose tomorrow the US government issued a statement to the effect that they really like the idea behind bitcoin and would be commencing work on a new government-mined blockchain, complete with a new genesis block; obviously with some different mining and block verification procedures. Police, military, doctors, teachers, ALL employees in ALL branches of government would be paid in that new blockchain. How do you see that situation evolving? Now ask yourself, how is that situation any different from executing a surreptitious 51% attack on the current blockchain?
Actually, thinking about that scenario myself, it would seem to be a much more logical path for government to follow. Hah, I just shot myself down
Let's pose the problem another way. Suppose tomorrow the US government issued a statement to the effect that they really like the idea behind bitcoin and would be commencing work on a new government-mined blockchain, complete with a new genesis block; obviously with some different mining and block verification procedures. Police, military, doctors, teachers, ALL employees in ALL branches of government would be paid in that new blockchain. How do you see that situation evolving? Now ask yourself, how is that situation any different from executing a surreptitious 51% attack on the current blockchain?
Actually, thinking about that scenario myself, it would seem to be a much more logical path for government to follow. Hah, I just shot myself down
I think you're exactly right. If the government found the *theory* of bitcoin to be better than paper fiat, it would be simplest to bootstrap govcoin with centralized components rather than try to hijack an existing crypto currency by brute force. Digital currency is a lot simpler if you replace the hashing power with centralized servers.
At that point, people wanting to avoid government inflation could trade govcoin for bitcoin after getting their paycheck.
Ultimately, if one or more governments decided to outlaw bitcoin, they could make things a lot harder for the community, but it would be very difficult to eradicate. Bitcoin won't be able to topple visa without government ambivalence or support.