In Fiat We Trust!?
Some I can come up with:
Big question-marks about the safety and stability of the Bitcoin system. It's a interesting and clever system, but also connected to some risk that something will go wrong in the system when it's "open" for manipulation. What if a country like China or North Korea put's in a lot of computer power and know-how to break the system, will the system be able to handle that? I also question the privacy of the system, I read that you can track all previous transaction done in the payment chain before you or something like that. I don't know if I want others to be able to track done what I have payed for (no, I don't want that)
"The rules of the protocol and the cryptography used for Bitcoin are still working years after its inception, which is a good indication that the concept is well designed. However, security flaws have been found and fixed over time in various software implementations. Like any other form of software, the security of Bitcoin software depends on the speed with which problems are found and fixed. The more such issues are discovered, the more Bitcoin is gaining maturity.
There are often misconceptions about thefts and security breaches that happened on diverse exchanges and businesses. Although these events are unfortunate, none of them involve Bitcoin itself being hacked, nor imply inherent flaws in Bitcoin; just like a bank robbery doesn't mean that the dollar is compromised. However, it is accurate to say that a complete set of good practices and intuitive security solutions is needed to give users better protection of their money, and to reduce the general risk of theft and loss. Over the course of the last few years, such security features have quickly developed, such as wallet encryption, offline wallets, hardware wallets, and multi-signature transactions."
To my knowledge I've never heard of Bitcoin being hacked; and I am a pretty avid follower of the currency. Attempts, yes; all failed. The news you hear in the media about exchanges being hacked; accounts being hacked; Bitcoins lost or stolen. That is all from databases being hacked in the same way that Target's information had been hacked. Lack of server security, etc.
It's not my job to convince you to trust in Bitcoin; nor do I care. I'm just trying to answer your concerns. If you know of an instance in which Bitcoin was legitimately hacked, I'd like to know about it.
Some I can come up with:
Will the system handle a big scale up? Let's say the Bit-coin "boomed" and got 100 times bigger, will the system handle that?
Which system are you referring to?
Entropia Universe?
Regardless; the questions is irrelevant.
Here's how.
MindArk is not "The Party" holding, storing, nor managing Bitcoins. Nor do they have to provide support.
As mentioned previously; The middleman (BitPay in this case) instantly converts all the transactions into the local currency; which I believe is Euros in this case.
If a player deposits in Bitcoin, the funds go to BitPay and the Fiat gets direct deposited from BitPay to MindArk's bank account.
(and vice/versa for withdrawal)
So if 1 Bitcoin was to boom to $25,000 per Bitcoin; and a player wanted to deposit 50 Bitcoins into the game.
Then 1.25 Million dollars would be provided from BitPay to MindArk.
Same concept for withdrawal. All of this can be verfied from BitPay's website; also note that I'm using BitPay as the example in this thread as they are very well known and widely used for these types of transactions.
Some I can come up with:
Not controlled by any state institution or similar organization that guarantees the safety of the system. If the system was "sponsored" by the US government, EU and/or UN I would believe in it more.
No country would like to loose control of their financial payment system, so they will not like it if it grow "big" and would start to put regulations and restrictions on it. They absolutely don't want a "currency" where they can't control the amount of available money in circulation.
"Governments control fiat currencies. They use central banks to issue or destroy money out of thin air, using what is known as monetary policy to exert economic influence. They also dictate how fiat currencies can be transferred, enabling them to track currency movement, dictate who profits from that movement, collect taxes on it, and trace criminal activity. All of this control is lost when non-government bodies create their own currencies.
Control over currency has many downstream impacts, perhaps most notably to a nation’s fiscal policy, business environment, and efforts to control crime. While each of these topics is broad and deep enough to fill volumes, a brief overview is enough to provide insight into the general concept."
Safe system for who?
Refrences:
Read more:
http://www.investopedia.com/article...ernments-are-afraid-bitcoin.asp#ixzz3Xx8uFg7C
In Quotations and italicized; from Investopedia article: "Why Governments Are Afraid Of Bitcoin"http://www.investopedia.com/articles/forex/042015/why-governments-are-afraid-bitcoin.asp
Bitcoin: FAQ
MOD; please let us discuss.
We're not arguing, just sharing viewpoints regarding topic. Controversial topic.
Sidenote; I don't work for BitPay, nor am I an affiliate. Just looking for ways to expand the universe.
