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September 24, 2018


Peter Freiling

Irving, with all due respect, let me educate you. Private people cannot create currencies with any credibility. What gives all currencies credibility is government backing, which says this is "legal tender for all debts public and private." And, this promise by the government is enforcable in court.

Bitcoin is a joke. As Nobel Prize winning economist Paul Krugman said, it is a "bubble, wrapped in techno-mystique, within a cocoon of libertarian ideology."

The fact that it is wrapped in techo-mystique (ie, blockchain et al) does not make it any more or less valid. The point is it is a fraud, a ponzi scheme, and the last man aboard will lose badly.

Peter Freiling

I have several additional points which you touch on, but are stated a bit more directly below:

- There is no consumer protection with bitcoin. If somebody screws you, who do you call?
- The unregulated and thinly traded nature of bitcoin makes it more vulnerable to market manipulation
- The overall system is much slower that international banking systems, by at least several orders of magnitude
- It is hard to believe this sytem is really scalable. Can it support 1 billion people transacting every day?
- What would then happen to response times and the size of databases that need to be copied with 1B users?
- How big do the copies become in 10 years, 20 years, 30 years? How long will it take to make all the copies?

For your consideration, Peter Freiling

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