re:
Slippery Slope: For example, consider a Bitcoin ATM compared to a bank ATM. The Bitcoin ATM uses the internet to operate same as a bank ATM - but the Bitcoin ATM does not involve the vast overhead of the banking infrastructure...
And the bitcoin ATM certainly doesn't use WindowsXP where an estimated 95% of traditional ATM are still using XP!
http://money.cnn.com/2014/03/04/technology/security/atm-windows-xp/re:
twiifm: If more crypto developers understood how money works then maybe the next iteration won't be so held back by immature politics or designed to be abused by speculators.
I believe there is enough evidence to prove that the existing system is fragile from the ground up. If not so, there would have been no need for QE in all its flavors since, what, 2008? If not so, the average lifespan of the dominant currency might be longer than 27 years.
http://georgewashington2.blogspot.com/2011/08/average-life-expectancy-for-fiat.html Even today, after all the bailouts, Citibank failed a 'stress test' - what's that supposed to mean anyway? How do we measure it when the most important ledgers were kept of the balance sheets.
I worked at a bank. I would read internal guidance on a regular basis. I learned that it was 'in the best interest of our customers' to get them on Libor, 'because it is more stable' - yeah...
http://en.wikipedia.org/wiki/Libor_scandal - they left out the part where it was more stable for collusion and profit through theft.
I would regularly read guidance internally in the banks that was later echoed by Federal Reserve publications. Not only are banks ahead of the game but they rig it and plan its course, yet they still can't survive without extortionary tactics.
This was not fair to all the credit unions and small independent banks who were wise with their assets and leverage and still suffer the consequences through higher insurance costs and regulation - not to mention the damages to everyone else who's not a big bank.
I remember Greenspan saying in 2004 that adjustable rate mortgages 'might be the better deal' -
http://usatoday30.usatoday.com/money/economy/fed/2004-02-23-greenspan-debt_x.htm - yeah... how'd that work out.
Start with an anti-fragile base and build on top of it. Just like Microsoft has chosen to stop supporting WindowsXP on April 8th, Bitcoin developers can dump the old code and build from the ground up with the goal of lasting more than 27 years.
I don't disagree that there are numerous problems in banking. But it has more to do with regulations than what currency we use or how its made.
In terms of regulation there is a lot of controversy surrounding repeal of Glass Steagal. And some people believe the repeal in 1999 was a major contributor to 2008 crisis 9 years later. I happen to agree.
Dodd-Frank tries to address some of these issues but unsuccessful in reinstating Glass-Steagal itself. Things like Volker Rule & ring fencing would help minimize damage if something like 2008 were to occur again
I'm for MORE regulations when it comes to banking not LESS. It is my observation that many bitcoin activist are politically libertarian and in general prefer less to NO regulations. Um, I just don't see it. Money makes people greedy and I see more greed and corruption in bitcoin world than in mainstream banking. The only difference is scale. The Mt Gox saga didn't crash bitcoin only because bitcoin is fringe. Imagine if that was NYSE or Nasdaq. That would severely damage our economy