El Salvador abandons Bitcoin as legal tender

Post by desumeku » Tue, Feb 04, 2025, 4:11 PM UTC

postalrat wrote: post #373

kragen wrote: post #303

Earlier quoted context omitted.

While that's conceivable, Merkle-graph systems like Bitcoin are surprisingly resilient. It's been almost 20 years since MD5 was thoroughly broken, but still nobody has published a second preimage attack. For SHA2 and SHA3 nobody has even published a collision attack. And SHA-256 (what Bitcoin uses) is post-quantum-safe (Grover's algorithm still needs 2¹²⁸ time) though AFAIK there isn't yet a post-quantum cryptosystem…

To me its inevitable. And just a matter of time. Any year there could be a breakthrough that quickly leads to missing math.

Post by llamaimperative » Tue, Feb 04, 2025, 4:13 PM UTC

loophole27 wrote: post #745

llamaimperative wrote: post #728

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LOL I have $1,000. I believe that tomorrow, my $1,000 will be worth $2,000. Why would I ever spend my money? Hence, economy freezes. This is so plainly obvious to everyone except crypto zealots I literally gasped seeing your comment.

Because I need to buy food, clothes, pay rent, and replace my laptop that just died. And I need to do this today or i’ll starve on the street. I could delay buying a new laptop, but that’s a personal preference. I still need one at some point. That’s why I would spend my money, because there are things I need or want.

Post by robertlagrant » Tue, Feb 04, 2025, 4:15 PM UTC

ornornor wrote: post #549

computerdork wrote: post #503

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Yeah, i really dislike bitcoin, but have to admit, it has been a very profitable investment for a lot of people (and still hasn't completely crashed like expected)... ... although as a form of currency (as opposed to an investment) for El Salvador, it looks like it's a failure

It’s around 100k USD apiece, +875% in the last 5y, +340% over last 2y, +130% over last 1y… I’d also qualify this as “not quite crashed yet” I dont know what the future hodls but it’s looking pretty good for bitcoin so far

Post by ToValueFunfetti » Tue, Feb 04, 2025, 4:16 PM UTC

fsckboy wrote: post #337

ToValueFunfetti wrote: post #203

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If the USD was such a good currency, why does the US operate at a deficit?

> why does the US operate at a deficit? are you talking about a trade deficit (the US operated at a trade deficit virtually the entire time it grew from 13 former colonies to the post WWII economic colossus. Lending money to a growing economy so it can turn around and purchase the equipment you are selling which it will use to be more productive is the secret sauce of a growing economy) or are you talking about a bud…

Post by robertlagrant » Tue, Feb 04, 2025, 4:18 PM UTC

notahacker wrote: post #694

wruza wrote: post #647

Earlier quoted context omitted.

I mean, what I'm about is really the same, just the other way round. Countries usually erase zeroes after hyperinflation adds them, cryptocoins can just add extra zeroes due to deflation. No change in value, just higher granularity. The rest left me puzzled, can you elaborate? Why should the money holder do anything productive? Why getting richer and richer becomes something bad when we go crypto?

> Why should the money holder do anything productive? Why getting richer and richer becomes something bad when we go crypto? This question works better the other way round. Why should people that do all the work and take all the investment risks to make the riches get continually decreasing returns on their efforts whilst the people that sit and HODL get continually increasing returns on doing nothing?