You can’t really though, because traditional banks are regulated, and if anyone tried to do that Theyd be investigated by the FBI and the Secret Service then any fraudulently created currency would be destroyed. Further it’s not a core tenet of Fiat Banking that more can’t exist so follow on effects would be limited. If anyone introduces new bitcoin none of that happens, all holder is just lose because decentralization. It’s almost like in the thousands of years of traditional currency people have thought of this and implemented mitigations. It is fascinating to watch bitcoin replay the entire history of traditional banking in fast forward.
> You can’t really though, because traditional banks are regulated, and if anyone tried to do that Theyd be investigated by the FBI and the Secret Service then any fraudulently created currency would be destroyed. Further it’s not a core tenet of Fiat Banking that more can’t exist so follow on effects would be limited. If anyone introduces new bitcoin none of that happens, all holder is just lose because decentralization.
Unless a hacker finds a flaw that lets them siphon off bitcoin without anyone noticing, all the holders would have to do is fork the chain with flaw fixed. Bitcoin is just an P2P shared accounting book, after all, and if someone is able to write an illegal entry in there, the entry can be scrubbed and rewritten. As long as over 50% of the miners believe it's the right thing to do, it becomes the new official record. This actually has happened before and played out exactly as I just wrote: https://en.bitcoin.it/wiki/Value_overflow_incident
If a bank is hacked, who can say really what will happen? Because of secret courts and shadowy government agencies, all you really have is blind trust. Could you go and audit the US Dollar and be sure that there isn't more being created than what the government tells us? It would take you years even if you could, and even then, I'd bet you dollars to donuts that if the government was doing something they didn't want you to know about, they'd block you from finding out.
Bitcoin can be audited by anyone at anytime. Just download the blockchain, and run a program to process it, and you'll know immediately. In fact, the official client does exactly this, and won't accept a blockchain that doesn't pass its internal audit.
> It’s almost like in the thousands of years of traditional currency people have thought of this and implemented mitigations. It is fascinating to watch bitcoin replay the entire history of traditional banking in fast forward.
In the thousands of years of traditional currency, no one was able to create a currency that limited the number of coins created in a way that anyone can publicly check, shared with the ability to transmit very quickly and anonymously large sums across the globe.
This makes cryotocurrency unique, and the old traditional ways of handling money do not apply to it.
