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Comment by rissicay | Hacker News Reader

this is why bitcoin is important...

How would bitcoin change anything? The market pricing mechanism for bitcoin is outside the scope of the blockchain - in other words traders set that.

Likewise interest rates on bitcoin would be exactly the same.

I agree to an extent however bitcoin marketplaces have a substantially lower bar to entry and slightly more (apparent) transparency to trade volume and holding which can give better ideas as to stability and the market consensus. I admit this is conjecture however it is undeniable that the closed doors of financial institutions make price fixing more convenient.

> Bitcoin marketplaces have...more (apparent) transparency to trade volume and holding

Libor is the rate at which banks lend to each other. It wouldn't matter if the contracts were dollar or Bitcoin or seashell denominated. They are private contracts to which the public is not privy. A simpler solution is requiring banks to post their interbank borrowings, nightly, to a clearinghouse.

I just realised i'm mixing up trading and lending, i shouldn't post when this tired lol. Maybe if we lived in a dissociated socialist crypto cybertopia it would be possible, i can dream.

It's competition with standard banking and payment at least.

Yeah, like always playing in gold is...

That's what I was thinking. Bitcoin is significantly easier to trade in.

You really think politics/central banks will sit back and shrug "oh we can't regulate money supply any more, a small number of anonymous people who invested in Bitcoin early are in charge of the world economy? Bummer."

Nope. But they are not omnipotent.

The bitcoin circle of self-pleasing is funny.

They don't know the basis of economical science and are stuck in a self-limiting (hence deflationary) monetary base. Not to mention some of the fundamentalism that runs around

Good luck with that

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