Quote from: r0ach on July 05, 2016, 01:00:41 AM

Quote from: MatTheCat on July 05, 2016, 12:50:43 AM

...neat idea, but things aren't quite working out as well they might have done, back to the drawing board perhaps?

You don't understand what you quoted. Any recursive, closed loop system (PoS) is not a decentralized currency, it's a permissioned ledger. So to create an actual decentralized currency, you require an open entropy system (PoW mining - a permanent decentralized exchange peg), and those externalities that connect it to the real world will have the real world problems leak back into the Bitcoin system. China trade imbalance is a REAL WORLD problem, not a Bitcoin problem. The problem just leaks back into Bitcoin because the problem exists in our world. As I said, all nations adopting Bitcoin would actually eliminate the problem since no nation can operate currency wars then to form the trade imbalance in the first place.

It doesn't matter if Bitcoin exists or not, you would still have to deal with the China trade imbalance regardless, either through war, tariffs, or each nation adopting the same currency to prevent currency wars from creating the imbalance. Tariffs and war are likely a synonym for each other, so the end result is, you can likely either all die in WW3 or adopt the same settlement currency. The only viable candidates are Bitcoin and gold, but both could obviously be used at the same time to make up for the deficiencies of one another and everything would just be a BTC/Gold trading pair.

I think a Bitcoin/gold trading pair would actually be a really good idea for a lot of the world's economies and trading systems, but I think allowing for each country to maintain their own currency and just trade into whatever store of value is chosen would be a better idea than our current system, that being the US having the primary currency used as a medium of trade, along with it being used domestically in their country.

Rather than have everyone use Bitcoin, maybe keep everything the same and just have Bitcoin be the trade currency, along with gold? Give people the option to own Bitcoin but allow for everything to work the same way it does currently?

That would bring its own questions, though; what would happen to the currency exchange markets?