this post was submitted on 27 Feb 2024
374 points (94.5% liked)
Technology
59440 readers
4062 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Militaries, usually.
A nicer way to put that is that taxes are collected in national currencies. You can use any currency you want in private transactions but when the tax man comes calling, you better have the government’s preferred currency.
Also, what are cryptocurrencies backed by? Why do y’all exclusively call government money “fiat” when that just means it isn’t backed by a precious metal? Is there a Bitcoin Ft. Knox out there making it not a fiat currency?
It may require a bit of TradFi history to truly understand Bitcoin and why it was even created in the first place. Much too long to even attempt at concatenating in a lemmy comment. Bitcoin wasn't a get-rich-quick scam like the majority of shitcoins today. CypherPunk movement had been working on a trustless system without a governing authority pre-Bitcoin (see e-cash).
Government backed currencies require trust. In the US you are trading IOUs issued by the Federal Reserve, which isn't even a Federal branch, but privatized business. There have been numerous times where the heads of the Fed have outright stated they simply enter numbers into a computer to issue money to Central banks, etc. Since Americans were robbed of a tangible currency, backed by Gold, the money printer has quite literally gone "brrrrr".
I don't trust the government or the bankers who have repeatedly financially rape the citizens. Remember the 2008 collapse? No one was held accountable. So, they've found new loopholes to continue pillaging the fiscally uneducated. The trust has been long gone as we're repeatedly lied to.
This is what Bitcoin has sought to solve in that it's not debased due to over issuance, unlike most fiat currencies. It doesn't contribute to inflation, causing your purchasing power to be decreased. It quite literally removes the powers from corrupt bankers and gives it to the people.
On the subject of energy consumption, yes it has historically taken quite a lot for Proof of Work miners. However, in year's past the miners have done a significant job at only using either green power sources or buying overproduced energy from companies. This has seen it drop far below the energy consumption of legacy banking or the Military Industrial Complex.
So, what you're saying is, if fiat is backed by militarism, it's really backed by death.
Fiat currency is controlled by the government over which we have a bit of power (for those of us who live in a democracy).
Bitcoin is by definition controlled by those who have the power and thus the money to mine. It's a bit like democracy only that the more money you have the more votes you have.
You have zero power as a citizen over the currency you use. You do not directly vote for the Central bankers, Federal Reserve board, etc. Even the politicians you might vote for who appoint them will almost always side in their own favor than their constituents. I'd hardly believe a word a politician ever utters. Just look at all the lies and false promising during the campaigns of the last 5 presidents and what they actually accomplished. Biden and college debt as a more recent example.
You are also confusing Bitcoin's Proof of Work with a shitcoin's Proof of Stake, which is where wealth gives you more votes. As for the hash rate you're contributing as a miner, there's no additional power you're given. Even if you attempted to 51% attack the network, it'd be gaining nothing beyond a double-spend by rewriting the blockchain transaction. Likely causing the currency's price to crash. Zero financial incentives for any rich people to do that, unless they're part of a nation-state hoping to try and destroy the currency.
I didn't say it's perfect, but it's not zero power.
Proof of stake is arguably even worse, but the energy required for proof of work isn't free either (and that's by design, if it was free Bitcoin wouldn't work).
There is more than double spending. Who decides how Bitcoin evolves? When new features are added, hard forks, etc. How much power do you have over that?
https://www.bitcoin.com/get-started/what-is-bitcoin-governance/#what-is-a-bitcoin-hard-fork
How ever you turn it, at best it's a shitty version of democracy.
Fundamentally money is all about trust, and I, despite all it's flaws trust my government much more than a random group of developers and miners.