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> Sucks in what way exactly? You can't really use them as currencies. They're too unstable. Cryptocurrency transactions are taxable events in the US. That alon
by gridlockd 7y ago
> Sucks in what way exactly?
You can't really use them as currencies. They're too unstable. Cryptocurrency transactions are taxable events in the US. That alone is too much of hassle to make them worthwhile.
They're usually backed by nothing, which makes them a purely speculative risk asset. The most stable coins are backed, ironically, by fiat. Sometimes with fractional reserve. I've looked into crypto backed by precious metals, but liquidity is awful.
So they're useless as currencies, they're useless as a hedge, the only use for cryptocurrency is to speculate on cryptocurrency.
> Because from where I'm standing: I continue to have access to a low cost, friction-less token on an immutable ledger operating on the World's most secure Network on my phone, that I can use anywhere with wifi, and I can pay anyone who currently accepts Bitcoin and it operates 24/7 without anyone's permission.
Yes, that's the gimmick. I get it.
> And I can program it to do various things on top of that should I need it to, with built in trustless systems
All your "trustless" system can do is shift around entries on digital ledgers. That's not that useful. Most systems require some degree of real world trust and accountability.
For example, how does cryptocurrency deal with fraud and theft? Quite poorly, if you ask me.
> All of which incentivizes not only fair commerce and a real usecase for triple bottom line accounting, as it spurs on renewable energy as its main source as it continues to grow but also allows for previously marginalized/undocumented people into an economic system to be on boarded
I don't see any evidence that it actually does that. Sounds more like wishful thinking.
- viklove 7y ago> So they're useless as currencies Maybe to you, just like the INR is useless to you as a currency (because you don't live in India). Many people do use Bitcoin as currency, and transact with it every day.
- gridlockd 7y ago> Maybe to you, just like the INR is useless to you as a currency (because you don't live in India). Apples and Oranges. > Many people do use Bitcoin as currency, and transact with it every day. Do they really? To buy what? Other cryptocurrencies? Virtually nobody accepts Bitcoin as a currency. Some shops accept Bitcoin as the vehicle for transactions in USD or EUR, or whatever. They use services like Bitpay, who pay out in ordinary currencies. Prices are calculated based on the Bitcoin market price in ordinary currencies - plus a markup for volatility and transaction fees, which is generally more expensive than just using the ordinary currencies themselves. That's not Bitcoin being used like a currency, that's Bitcoin being used like a payment provider, like PayPal. Millions of people transact with PayPal every day, but PayPal is not a currency. Of course, that one time some guy bought a Pizza or even a House with Bitcoin. That's Bitcoin being used "like a currency". Exceptions to the rule.
- viklove 7y ago> Virtually nobody accepts Bitcoin as a currency. Some shops accept Bitcoin as the vehicle for transactions in USD or EUR, or whatever. They use services like Bitpay, who pay out in ordinary currencies. Prices are calculated based on the Bitcoin market price in ordinary currencies - plus a markup for volatility and transaction fees, which is generally more expensive than just using the ordinary currencies themselves. I mean if you just want to ignore the fact that all over Europe, you can pay rent, buy groceries, and live your life solely by using bitcoin, then I guess there's no arguing with you. You live in your own little bubble.
- gridlockd 7y ago> I mean if you just want to ignore the fact that all over Europe, you can pay rent, buy groceries, and live your life solely by using bitcoin, then I guess there's no arguing with you. That's a massive exaggeration. I can guarantee you 99.99% of landlords will not accept Bitcoin as payment. Most major stores will not accept Bitcoin. Are there a couple of hipster places in major cities that may accept Bitcoin? Sure, presumably you can waste your money exclusively dining and shopping there, if that's your thing. Pretty much nobody is going to do that in their daily life though, except to write one of these "I lived only on Bitcoin for a month" blog posts. That's because Bitcoin sucks as a currency. Right now, a single transaction to go through in about ten minutes will cost almost a dollar. It's just not practical. Of course you can also get one of these Bitcoin credit cards and pay almost everywhere in the whole world. Again, that's not Bitcoin used a currency, that's Bitcoin used as a gimmick payment platform. > You live in your own little bubble. I suspect the same of you.