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Whenever I read about digital currencies I get a sinking feeling. Everything about them raises red flags in my brain that this is an asset bubble that will pop
by pg_bot 9y ago
Whenever I read about digital currencies I get a sinking feeling.
Everything about them raises red flags in my brain that this is an asset bubble that will pop.
All of these currencies have drastically appreciated in the past few months without anything fundamentally changing.
A series of companies have ridden the wave based on black box tech that few people understand.
I've had a few friends who are looking to make a quick buck ask me for my opinion on cryptocurrencies.
The only benefit (IMO) of using a cryptocurrency is the ability to participate in the black market.
The current financial system for all its warts does a good job at facilitating trade.
My advice would be to treat any speculation into digital currency as gambling.
Don't spend any money you can't afford to lose, take some money off the table if you happen to be winning.
- flowless 9y agoThe thing is - there is no black box tech. Bitcoin paper is so clear you can explain the tech behind Bitcoin to a person in few minutes/hours depending on their math background. Same holds for virtually any cryptocurrency although the tech gets a bit more complicated (for example zero-knowledge proofs used by Zcash are not that easy to comprehend and explain). There are many benefits of cryptocurrencies, one of them is IMHO pretty important - it is much harder to manipulate the prize of currency, or to create new amounts of currency at will - everything is backed by math and computational power.
- skilesare 9y agoCould you read about my stuff at Catallax.info and tell me it makes you feel the same way? I mostly agree with you but think there is an underlying property of the immutable ledger that will lead to some really interesting things. The news section has some of the latest info.
- deleted 9y ago[deleted]