Mintchip vs Bitcoin – the perfect test of Central Bank vs P2P money
We now have a brilliant comparison in front of us between a government backed electronic currency and an internet peer to peer based one. May the best man win.
The Mint hopes that eventually Canadians will use a ‘chip’ to load value onto a device such as a smartphone, PC, tablet, or store it in the cloud, and then buy physical goods in the real world or digital content online.
Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system.
Relevance to Bankwatch:
I attended the release of MintChip in 2012 in Toronto, and while it was very loosely defined, despite that, I have greater confidence in it than the tightly defined Bitcoin. Time will tell. I have a lot of (ugly) experience with P2P. The premise of wisdom of crowds for example is flawed. Bitcoin by its nature involves a degree of democratic vote as to things like relative power of miners. I am immediately suspicious that my money is evaluated by other than commercial need; that’s something I understand.
I do not see money evolving in P2P at all. Money is fundamental and basic. Utmost confidence is essential.
I’d love to hear views on the pros and cons here. Weigh in please!