Why Bitcoin Terrifies Big Banks | Interview with Andreas Antonopoulos

[DeSwiss]

breakingtheset·Published on Jan 28, 2014

Abby Martin speaks with Andreas Antonopoulos, founder of Root Eleven and co-host of let's Talk Bitcoin, discussing how Bitcoin works, and why it's so important to have a decentralized system of money.

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[Renew Deal]

1. Other appearing to be a global scam, bitcoin isn't that terrifying

[AndyTiedye]

2. Having my Money in Bitcoins Would Terrify Me

The "value" of Bitcoins is based on the cost of computing. Is there ANYTHING that has dropped faster than the cost of computing?

Oh, but wait, they periodically make the computations more difficult to make up for that, so it's OK. NOT.
Whoever knows when and how much they are going to do that gets to game the system.

If you want to get out from under banks and government-issued currencies, the only sane alternative is barter.

[MrMickeysMom]

3. Where do you get that idea from?

I understand bit coin are based on a rare algorithmic property of numbers. They have an intrinsic value and at least one person has shown they have survived on them for a year.

Bitcoin may not the the end product of where we go, but it far exceeds legal tender based on a fractional reserve system.

[AndyTiedye]

4. Backed by the Full Faith and Credit of Absolutely Nothing

Please explain to me from whence the "intrinsic value" comes. I don't see it.

I understand bit coin are based on a rare algorithmic property of numbers

Very similar to algorithms used for cryptography. Spent much of my career in secure networking and we had to change algorithms or increase key lengths pretty regularly to keep ahead of advances in computer power.

The issues with fractional reserve are not in dispute, but with Bitcoin there is NO "reserve" at all. Nothing. Nada.
Bitcoins are only worth what some greater fool will pay for them.

[MrMickeysMom]

5. Pray tell… what do you think our fractional reserve system is backed by?

[AndyTiedye]

6. In the case of Bitcoin, the Fraction is 0%

I get the fractional part. Still way better than nothing.

So how do Bitcoins have any "intrinsic value"?

[MrMickeysMom]

7. Consider what is going on in Montreal...

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[AndyTiedye]

8. Are You Claiming a Building in Montreal as the "Intrinsic Value"?

Plenty of companies that have come and gone had much more impressive buildings than that one.

I get that you very much want Bitcoin to succeed as a way of sticking it to the bankers.
I don't much like bankers either.

What we have here is just another speculative bubble. The price has been extremely volatile. Buy into it at your peril.

If you want to stick it to the bankers, use barter.

[MrMickeysMom]

9. I'm not sophisticated or so naive that I'd invest in bit coin...

But, I'm not so naive to think that decentralizing initiatives like bit coin will bring forth the alternative to what has become a casino Gulag.

We'll see if you're right, while the backlash builds against what we have in place now (talk about bubbles).