[Cryptography] Proof of Work is the worst way to do a BlockChain

[Ersin Taskin]

2018-02-13 9:01 GMT+03:00 <jamesd at echeque.com>:

> On 08/02/2018 17:18, Ersin Taskin wrote:
>
>> 5. Plus no bank has robbed me, served me poorly with my money deposited
>> on them in my entire life.
>>
>
> Several American banks have robbed me and served me poorly, particularly
> with regard to iras and international transactions.
>
> A number of people deemed enemies of the state, most notably wikileaks,
> were forced into cryptocurrency early by having their funds in quasi statal
> institutions (banks, paypale, etc) frozen, and lots of people have had
> their crypto currency frozen by quasi governmental crypto currency
> exchanges.
>
> And in the Great Minority Morgtage Meldown, they served everyone very
> poorly and robbed large numbers of people.
>
> In a big holiness spiral the banks competed each to lend more money to non
> Asian minorities than the other, the big winner being Countrywide, which
> was rewarded for its superior holiness by being enabled by the regulators
> to take over other banks with depositor money.
>
> Competing each to lend more money to minorities than the other, they
> proceeded to make million dollar mortgage loans to cat eating wetbacks with
> no income, no job, no assets, and no credit rating.
>
> They unloaded most of these dud mortgages on Fannie, which is to say the
> taxpayer, Freddie, which is to say the taxpayer, and on the Mortgage
> Derivative market, which is to say they swindled individual investors,
> though China was compensated by the American taxpayer for the money that
> the banks swindled out of them.
>
> From 2005 November to late in 2007, banks were still unloading dud
> mortgages at near face value on the mortgage derivative market, but
> investors who bought these derivatives at near the face value of the
> underlying mortgages found that they could not resell them, that prices in
> the derivative market were fake.  Every mortgage derivative sale from 2005
> November onwards was a bare faced swindle.
>
> Swindling very large numbers of people out of very large amounts of money
> was deemed OK, because done in the holy social justice cause of getting non
> asian minorities to occupy houses in leafy green suburbs.
>
> And now we are seeing a bunch of crypto currencies sponsored by quasi
> state entities in Green Energy, female emancipation, etc, which seem likely
> to retread the path trodden by the Mortgage Derivative Market.


I am sorry once again, I felt the same anytime I watch, read about it.
However, this does not change the fact that Turkish banks have not done the
same in our entire mortgage history. Our banking system was influenced by
the international banking system in the 90's and became less regulated
until it crashed in the famous 2000-2001 crisis. After that the government
let the banks go bankrupt, put the bosses (the shareholders plus
executives) who have been proven to be fraudelent in jail and swithced to a
tightly regulated regime. It costed the political parties who ruled in the
90's a great deal and gave the new party which was born in 2001 the victory
since the 2002 Elections. Since then our banks are as strong as you can
get. They are so strong that the global mortgage crisis affected all the
developed countries profoundly, causing some of them go bankrupt totally
while it did not affect the Turkish financial system significantly. Since
then Turkey races with China in terms of growth. It is not that Turks are
honest people. It is because the banks are regulated. Therefore, when you
use the American Bitcoin propaganda jargon in Turkey it just doesn't make
sense. My father, mother-in-law, my friends just don't seem to be so much
impressed when I explain them Goldman Sucks. They just feel sorry for the
American people who suffered and feel good to see their banks are
trustworthy. Most of them just say that they would of course trust the
banks more than all the coins and ICO's. This is an observation I cannot
deny. I don't mean our banks are perfect. However, they are so impressively
good. They always had the best Internet Banking on the planet. They
developed mobile banking, QRCode based applications  before anyone in the
globe, and  they even supported private ticket/token companies in creative
ways before Bitcoin. We had our own electronic tokens used to buy coffee
before Bitcoin and I could not buy a cup of coffe in Bitcoin at the Bitcoin
Superconference this weekend. Today we have many fin-tech companies
(unfortunately acquired by Internaional players) that were actually born in
Turkey. And all it had to take was just regulate the goddamn sector so that
they have to work hard to earn money via serving people better. And this
was possible because of the 2001 crisis we suffered. We just took the
lesson and applied the obvious solution.

I do not mean let's keep the banks the way they are. However, if we want a
global cryptocurrency system we need to be open to all people and
situations. Banks are a part of the reality we must take into account. Any
currency system to be implemented TODAY should take the banks into account
and treat them as peripheral devices. And I believe that it must be a
robust cash system if it seeks adoption. I don't think a system with 5
transactions per second bandwidth has any legitimate use case as currency
at all.
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