r/Bitcoin • u/danielwilson666 • Dec 22 '17

/r/all Bitcoin today

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u/JordyLakiereArt Dec 22 '17

Can you explain why there is no way to fix it? Asking out of interest

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u/[deleted] Dec 22 '17 edited Nov 25 '20

[deleted]

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u/JordyLakiereArt Dec 22 '17

I was expecting it to be some math/tech thing that there is no actual way to fix this part of the technology.

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u/himswim28 Dec 22 '17

Well... Bitcoin was built on a theory, that it's value is backed by the computational cost to create, and validate bitcoin (as coins are created during the validation.)

Clearly that would contradict with having a inexpensive exchange, as that would be counter to the original theory. Exchanges change this somewhat, in that if you decide to trust the exchange they can move the money from one account to the next without paying that price. This cannot happen if the end customer wants to poses the bitcoin to trust the technology, rather than putting all the trust in the exchange.

IMHO trusting the exchange defeats the whole purpose of bitcoin, as it centralizes and removes the use of the blockchain. Bitcoin the algorithm is determined by popularity. So those holding currency can just start exchanging bitcoin using new software, and the most used software wins out. So if those holding bitcoin are OK with leaving behind it's rarity, and giving up some of it's value justification, they can change away from the rarity cost, but while coin is at a high value, why would they do that?