On 20/07/11 3:25 AM, lodewijk andré de la porte wrote:
This would revive many of the things people have aspired to kill with
bitcoins. Among others the "creation" of money (I can borrow and "store"
more money than I have). It would also mean moving the scalability
problem to a centralized system, a trusted party.
To answer OP, typically all trading is done on a delayed and netted
settlement. Which is to say the trade might be done real time but the
settlement is batched for later, typically after market closing. No
money changes hands until later. This is especially true as you get
closer to liquidity or speculative trading, because of the nature of the
parties having no skin in the game, and trading on credit.
In other words: wouldn't having money backed by bitcoins instead of gold
essentially improve nothing?
That depends on what you are trying to achieve. Trading is typically
done that way because trading is done backed by a single authority to
ensure that both parties turn up with the settlement. Hence, in a
single place makes sense. Even distributed interbank trading is done
with the backing of the central bank as TTP providing the guarantee.
And if you look at the trading and types of people in the BitCoin
market, you'll likely come to the same conclusion.
I suppose we might try a bit-commit style of bilateral exchange but it
would need to overcome the speed and cost advantages of the TTP.
I personally still worry about how big the early bird bonus was, someone
estimated the earliest of participators had a million of bitcoins. If
someone does then that'd grant him 1/21st of the worlds wealth (assuming
an insane surge in bitcoin usage), something I cannot quite believe
anyone to deserve. I mean it's possible, just not likely that anyone
could be responsible for 1/21 of the world's wealth.
It's not likely that the remaining of the population could appreciated
it, sure :)
On 2011-06-17 4:35 AM, Sampo Syreeni wrote:
... What precisely would happen to
BitCoin if we had tens to tens of thousands of high frequency
traders
(thousands of transactions per second per trader) within the
network?
iang
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