Finance > Cryptos & Blockchain

Crypto speculating

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galumay:
more thoughts of mine, posted elsewhere,


--- Quote ---It won�t be long and Govts are likely to link currency to a
Blockchain or Blockchain like technology
--- End quote ---

Its possible that they will use an encrypted ledger of some form, they possibly already do, but it will never be a public, decentralised, networked, ledger like blockchain - and therefore wont require a crypto to support the energy and work required to run and support a blockchain.

Thats really the problem with the pyramid/ponzi scheme that is blockchain and bitcoin, the 'currency' exists to allow the massively inefficient ledger to operate, the 'value' in the ledger is that it satisfies the libertarian's distrust of centralised social control. The whole pack of cards is basically built on lack of trust and it's existence is very precarious.

There is definitely some utility in blockchain, but its much more likely in the future that the cost of that utility will be paid for in existing currencies rather than the fairy money that the perpetrators of the sham are creating. Also because the likely form of those blockchain type technologies are likely to be centralised and private, the energy and work required to maintain them will be minimal, which lessens the need for any new currency to be magicked into existence.

Another nail in the coffin will be the fact that Governments and financial institutions are already responding to the disruption by removing the barriers to cross currency exchanges making them faster and cheaper. That removes a signifant benefit that cryptos enjoyed.

All of that aside, like any massive bubble market, cryptos have created fantastic opportunity for traders like yourself Mr Duck, I have no doubt you will extract significant personal gain and wealth creation from the madness! Sadly there are many who will give up significant wealth because they dont have the ability or knowledge to play the trading game.

galumay:
This is the best summary I have read to date on blockchain, a twitter thread by @sarahjeong

"People who keep touting smart contracts as "simplifying contracts" don't understand that litigating contracts is expensive because of human interpretation, not because someone forgot to write something down and get it notarized

The only place in the law that could use blockchain technology is land records, and even that doesn't make all that much sense given that what you really need is a *centralized* database, not a decentralized network.

Blockchain is an elaborate work-around for a *very specific problem*: verifying irreversible transfers of value without a centralized authority. In other words, it's a computationally burdensome way to hate the government.

Almost everything that is supposedly going to get solved with blockchain can be solved with some kind of version control hosted on a central server.

* except for the drugs, the scams, the tax evasion, and payment-blockade-circumvention. I acknowledge that those are valid use case scenarios for 

90% of the people who are dazzled by "crypto" right now absolutely do not understand the core technological premise of any of this shit. It's an interesting innovation with an *extremely limited* ability to actually effect any positive change in the world

and that's why I fucking hate bitcoin  /end"

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