That feels a bit unfair as a headline since it’s only a part of why the post is fun to read.
Now, why do I think this has some heft to it?
I’m a person who knows a lot about how computers and software work, is generally curious, and reads fast. I’ve been wrong about lots of things over the years.
I either fit this description, am certainly going to fit this description eventually, or will do whatever it takes to fit it, so we start out being pretty spiritually aligned. Plus, in addition to the credentials he points out here, the writer was a Distinguished Engineer at a place where that is No Small Potatoes, so I’m real inclined to give his words some weight.
Anyway, I recommend reading this even if you don’t care a fig about cryptocurrency; it isn’t long and the anecdotes are worth it.
Another interesting one: https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3
that was a wild read, thanks for sharing
While I wish I had picked some up when you could buy thousands for a few bucks, I also wish it would go away. Massive waste of electricity.
you know what else is an arguably much more massive waste of electricity?
the existing banking sector…
I think that is more a massive waste of human talent.
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I’ve been quietly mining crypto using Nicehash for a few years now (electricity is cheap in my region, and we’re in a winter country, so it helps heat the house).
It’s a fun hobby, but I never considered it a serious investment vehicle, that’s what my index funds are for.
It’s great to see all the enthusiasm behind cryptocurrencies, but I think most people participating (me included) are more interested in the faucet of free money than the underlying technology. Anyone that spends any time learning about the tech quickly realizes that the Bitcoin project is a hot mess and the only thing it has going for it is name recognition. I don’t know when the bubble will pop, but when it does it won’t be pretty.
“You know what real money is? Money you can use to pay your taxes.”
The danger/utility of cryptocurrencies is that they are creating financial system where taxes can be completely avoided.
Apple, Facebook and Tesla shares have already been tokenized on the ethereum blockchain. I am sure more will follow. It is only a matter of time before tokenized stocks can be traded on a decentralized exchange that runs on something like the ethereum network. This means you could have an entire investment portfolio on a decentralized platform that is completely secret/anonymous (as long as your initial payment in was anonymous).
where taxes can be completely avoided
Bitcoin is not anonymous ^^. There are some cryptocurrencies which are (Monero) but even then, it doesn’t mean that you will be able to avoid taxes. At some point if you declare that you earn nothing, yet buy a new yacht every year, the government will start asking questions, and if it turns out that you used cryptocurrencies a lot and declared nothing, you will get in trouble.
The same argument could be made about any highly-profit illegal enterprise. Buying a yatch with dirty funds in the country were you pay taxes would be a mistake. Illegal funds should be laundered if you want to use them like this, which can certainly be done if you have a lot of money!
This doesn’t apply to people who commit tax fraud and do not buy a yatch every year. It is relatively easy for them to get by unnoticed.
That was an exaggeration, but hiding wealth in cryptocurrencies is not really different from hiding it in a Tax haven.
True, I feel like the main difference is that the bar to entry is lower.
I will not be arguing in the comments but you are all free to if that floats your boat
Well that is a totally fair complaint about Bitcoin and other cryptocurrencies. My only interest in them is how our far future societies would probably use something like cryptocurrency.
the last point about bitcoin not being “real” money is so true. the most important thing to come out of cryptocurrency development is really the use of blockchain
I think the game is over when most if not all Bitcoin is owned by institutions. Once all Bitcoins are minted the value that is left is using them as currency…which can’t happen if they are locked up in corporate treasuries, ETF’s or investment funds.
I think you raise a good point, while its decentralised. If most of the bitcoin is owned by the finance firms and not spread around the public then really we are back to sqaure one with our current monetary system, as all the wealth is in one hands
Corporate sellout lost me with “You know what real money is? Money you can use to pay your taxes.”
