At that point, that is at 1500 qubits of quantum computing power--if it's reachable--you could also hack nuclear submarines and nab the keys to every other guarded cyber-storage of every financial asset on the planet. Suddenly, Dane Curley's bitcoin wallet becomes much less interesting a target, lol. In the face of real quantum computing (not real yet), I think the blockchain is adaptable, and like every other tech reliant on cryptography, can and will have to adapt. As quantum grows in power over time, so too does gen pop tech, and by then bitcoin's storage algorithm can be changed/migrated. It's an adaptable system.
1. I think democracy is the great compeller of anything. It's certainly true that government can be the great compeller at times, but eventually they capitulate to us. We will see this at work in the legalization of marijuana in our lifetimes. Also, institutions want to reward growth of wealth within the country/countries those institutions govern, ahead of the countries they do not govern. Institutions are not immune to FOMO. We will see this at work in the corporatizing of marijuana-for-profit in our lifetimes.
2. Nothing prevents the creation of alternative cryptocurrencies. There are dozens more being created and pitched every month or so, I'd bet. But the concern isn't whether more can be created, it's whether one of those being created can supersede bitcoin as the democratically preferred store of value. So in trying to consider the future, I would ponder, "Why doesn't everyone sell all their gold and buy x, y, or silver?"
I was wondering more in terms of financial institutions - what made them ever accept Bitcoin to begin with. Theoretically, btc could’ve remained as a dark web currency without ever leaving that arena.
Marijuana I understand bc it’s a business opportunity. Btc is different bc it’s not so much a wealth generator as it is a store of value.
I see it complicating the levers of fiscal and monetary policy,
making a country’s ability to curb recessions that much more difficult. And with the supply currently capped at 21 million, I know all that is subject to future adjustment, but still, it’s a mind-fuck for me to replace/add traditional currencies with/to digital ones.
Bitcoin was siphoned out of owners’ accounts in the past from Mt. Gox (and eventually returned), so it must be possible for that to happen again. This is making me think of how it’s any different right now with cash in bank/brokerage accounts - can’t those too be hacked and the money transferred to off-shore accounts.
Yeah, mtgox was a poorly developed website that kept everyone's bitcoins on "hot storage" (even though they claimed they stored on "cold storage"), went from rags to riches, and had no code worth a damn to protect the rags (btc) that became riches (btc) when they did. Comparing them to an established crypto-wallet company like Coinbase is like comparing your local loan shark to Visa. Still, it's an account that is ultimately protected by your passwords and authenticators, like any other account you have, so your final sentence is on the mark!
However, you can keep your crypto off of any wallet apps in "cold storage." It's like going to an ATM to take the cash out of the bank and storing it at home in a bombproof safe. Of course, you'd need the bombproof safe, lol. In that case, your account is not accessible via the internet at all. And so it will only be accessible to hack when you turn it online (making it "hot storage" momentarily) and if a hacker simultaneously breaches all the authentication protocols and passwords, additionally.
FTR, Coinbase keeps 98% of their funds in cold storage, and 2% hot for liquidity, but I don't think it matters for someone's personal funds stored on the wallet, which is up to their own password/authenticator security, and is not insured like a checking account because cryptocurrencies are not legal tender.
Shit is so wild. Imagine a world where time spent in Virtual Reality is greater than time spent in physical reality and btc is traded by hand in VR as if it was a physical dollar or coin.
Sell before quantum computers crumble the entire blockchain!
At that point, that is at 1500 qubits of quantum computing power--if it's reachable--you could also hack nuclear submarines and nab the keys to every other guarded cyber-storage of every financial asset on the planet. Suddenly, Dane Curley's bitcoin wallet becomes much less interesting a target, lol. In the face of real quantum computing (not real yet), I think the blockchain is adaptable, and like every other tech reliant on cryptography, can and will have to adapt. As quantum grows in power over time, so too does gen pop tech, and by then bitcoin's storage algorithm can be changed/migrated. It's an adaptable system.
True, we’ll have bigger problems if China is secretly at 1500 qubits in a few years’ time.
What about all the smaller currencies - what’s stopping there from being dozens more, and what compels institutions to ever accept them?
I'll answer in reverse.
1. I think democracy is the great compeller of anything. It's certainly true that government can be the great compeller at times, but eventually they capitulate to us. We will see this at work in the legalization of marijuana in our lifetimes. Also, institutions want to reward growth of wealth within the country/countries those institutions govern, ahead of the countries they do not govern. Institutions are not immune to FOMO. We will see this at work in the corporatizing of marijuana-for-profit in our lifetimes.
2. Nothing prevents the creation of alternative cryptocurrencies. There are dozens more being created and pitched every month or so, I'd bet. But the concern isn't whether more can be created, it's whether one of those being created can supersede bitcoin as the democratically preferred store of value. So in trying to consider the future, I would ponder, "Why doesn't everyone sell all their gold and buy x, y, or silver?"
I was wondering more in terms of financial institutions - what made them ever accept Bitcoin to begin with. Theoretically, btc could’ve remained as a dark web currency without ever leaving that arena.
Marijuana I understand bc it’s a business opportunity. Btc is different bc it’s not so much a wealth generator as it is a store of value.
I see it complicating the levers of fiscal and monetary policy,
making a country’s ability to curb recessions that much more difficult. And with the supply currently capped at 21 million, I know all that is subject to future adjustment, but still, it’s a mind-fuck for me to replace/add traditional currencies with/to digital ones.
Bitcoin was siphoned out of owners’ accounts in the past from Mt. Gox (and eventually returned), so it must be possible for that to happen again. This is making me think of how it’s any different right now with cash in bank/brokerage accounts - can’t those too be hacked and the money transferred to off-shore accounts.
Yeah, mtgox was a poorly developed website that kept everyone's bitcoins on "hot storage" (even though they claimed they stored on "cold storage"), went from rags to riches, and had no code worth a damn to protect the rags (btc) that became riches (btc) when they did. Comparing them to an established crypto-wallet company like Coinbase is like comparing your local loan shark to Visa. Still, it's an account that is ultimately protected by your passwords and authenticators, like any other account you have, so your final sentence is on the mark!
However, you can keep your crypto off of any wallet apps in "cold storage." It's like going to an ATM to take the cash out of the bank and storing it at home in a bombproof safe. Of course, you'd need the bombproof safe, lol. In that case, your account is not accessible via the internet at all. And so it will only be accessible to hack when you turn it online (making it "hot storage" momentarily) and if a hacker simultaneously breaches all the authentication protocols and passwords, additionally.
FTR, Coinbase keeps 98% of their funds in cold storage, and 2% hot for liquidity, but I don't think it matters for someone's personal funds stored on the wallet, which is up to their own password/authenticator security, and is not insured like a checking account because cryptocurrencies are not legal tender.
Shit is so wild. Imagine a world where time spent in Virtual Reality is greater than time spent in physical reality and btc is traded by hand in VR as if it was a physical dollar or coin.