2

I want to create a imaginary scenario here to clarify my question.

Let's say, a bitcoin community is thriving at Cuba. Somehow few thousand Cubians manage to relocate at the remote location at Cuba and name the place Cubian bitcoin community city. The only mode of payment is bitcoin, so basically it's a bitcoin community city at Cuba that manage itself without help from Country Government.

Mr Smith from America sees tremendous opportunity to invest on Cubian bitcoin community city and also want to help since government doesn't care much. Mr Smith invested 1000 BTC to build Hospital on Cuban bitcoin community city.

After few months local Country Government raided the Cuban bitcoin community city and destroyed the hospital. Mr Smith loss all his investment.

So my question is in order to encourage investment on high risk countries like Cuba, can bitcoin community along with core developers upon collaboration and investigation generate new bitcoins and give it back to Mr Smith to recover his loss?

  • How exactly was this money "destroyed"? That doesn't make sense. – Jestin Apr 9 '17 at 18:37
  • Maybe he means the keys are destroyed/stolen/lost? – m1xolyd1an Apr 10 '17 at 1:23
  • I'm saying lost of BTC in the form of investment. Let say you both invest 20 BTC on Food store. If the food store is destroyed by the government, you will loose your 20 BTC indirectly since you invested on Food store. – sanz Apr 10 '17 at 2:51
  • 3
    This would require a hard fork. It would be technically possible if there was community consensus that it was a good idea, but it would probably lead to a loss of confidence in the currency and economic disaster. As such it is very unlikely that the community would agree to do it. – Nate Eldredge Apr 10 '17 at 4:54
  • 5
    @sanz, that is simply the case where an investment has gone bad. When money was paid for the hospital, it didn't disappear. Real estate developers were paid for the land, architects were paid for the design, suppliers were paid for the materials, and builders were paid for the construction. A hard fork could nullify those transactions, but don't these people deserve their money? If they keep their money and a hard fork reimburses the investor, the money supply becomes inflated...which decreases the value of everyone else's bitcoin. There's no fair way to do what you are asking. – Jestin Apr 10 '17 at 16:19
5

The reward schedule and therefore the amount of bitcoins in circulation are central rules of the Bitcoin system. Changing the rules to create additional bitcoins would be incompatible with the protocol and in contradiction to the social contract the Bitcoin community formed around. Breaching this social contract that is central to Bitcoin would destroy confidence in Bitcoin's value.

So, while it would be technically possible that more bitcoins are created, I am sure that the idea to change the protocol to bail out business ventures would not gain the overwhelming support necessary to implement it. It seems more likely that investors would use contracts or insurances that work on top of Bitcoin to hedge against the risk.

0

The banks are creating new digital currency on daily basis. In past government has bailed out banks by printing cash. I've yet to witness loss of confidence in US dollar. There are obvious speculations about it that public will loose confidence in it but right now there is no sign of it.

If government can bail out banks in dire situation like financial meltdown, I don't see any problem of generating new Bitcoin to repay back respective Bitcoin investors to cover for their losses due to government attack on Bitcoin community like above imaginary scenario in Cuba . I believe it will create more confidence in the Bitcoin users knowing that whole community is backing and supporting it. It'll truly empower community, a sense of revolution. If repaying is not an option than Bitcoin community has to find some ways to encourage investors to invest in under developed and high risk countries like Cuba.

I want to emphasis on why this Bitcoin investment is extremely important and powerful concept? Let's say for a while there is a Bitcoin protocol that repay back loss amount to Bitcoin investors or even better remedy system for the ridiculous act by the government to suppress the hopeful and lively self managed Bitcoin community at underdeveloped countries. I along with many Cubans and under developed countries would do the possible following things to take the matter at our own hands and try to change our lives. One could argue about each points for months but let's not focus on that. What I'm trying to highlight is at least there will be hope for change.

  1. Seize and take control of remote government land to start new Bitcoin community along with 4000 to 10000 people for start. Make sized land free to community.
  2. Install the Internet.
  3. Make Bitcoin only accpted currency.
  4. Immediately ask for the investment from the Bitcoin community. Could get help from respected Bitcoin core representative to approve the community. This is crucial point. Without investment, forming a new community is impossible.
  5. At the beginning, community will decided on what to build.
  6. Move 4000 to 10000 people the the location.
  7. Later, develop the software where the invested money is only invested where the community wants through voting without the need for the central decision authority.
  8. Install the community owned Bitcoin mining machine. Profit generated by these machines will be paid to investors.
  9. Develop some sort of agreement or protocol with the newly formed community to repay the invested amount by the generous Bitcoin Community.

Even if this newly formed city is destroyed by the government, investors don't have to worry about the loss since the hypothetical Bitcoin protocol will recover their losses. Community will rise again at new place followed by new investment.

Bitcoin still hasn't yet changed the lives of billions people around the world. I sometimes wounder how it's revolutionary. It has potential to be powerful beyond imagination. If money is source of power for all government than for the first time we have tool at our disposable to fight government money with money and yet it is limited by it's protocol. If technology doesn't enslave us than it's of no use.

  • To do this, what you need is investors, not radically undermining the properties of the currency. Developers are not the central bank to judge your projects. – Pieter Wuille Apr 11 '17 at 20:55

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.