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I think price volatility is the only reason it's not working as a normal currency. Right now, these blockchain currencies are traded just like expensive wine,
by ezoe 6y ago
I think price volatility is the only reason it's not working as a normal currency.
Right now, these blockchain currencies are traded just like expensive wine, art or gold bar. It's a speculative money game. We can't use wine or art to buy some food for today. Most people don't even run the full node themselves. They relies on somebody else's node. In good term, they are investing, in other words, they are gambling.
It's just sad seeing a lot of resources and some brains are wasted on these gamble.
How could this be happened? When bitcoin was announced and it's first implementation was actively developed by someone or some group known as Satoshi Nakamoto, it was just a technically interesting non practical piece of attempt. But now... it's just a mess. Had I mined bitcoin in early days, I could be a billionaire. But the same thing can be said on buying the gold bar. It's not that technically interesting.
The first P2P boom invented a lot of practical services. File sharing, web hosting, audio and video streaming, video chat and all. They are all pivoted to central system for efficiency, but some services gained a few years of early head start experience thanks to the P2P. What blockchain achieved so far? Nothing. It just invented another gold bar. Totally useless but some people believes value in it.
I really wish people wake up and spend precious time and resources on something that introduce real value to the world. Blockchain? Wake me up if proof of storage space become practical.
- willbudd 6y agoYou have obviously no idea what you're talking about. Bitcoin's block mining algorithm is excessively deflationary: it encourages hoarding instead of spending while disproportionately rewarding early adopters. That however has absolutely nothing whatsoever todo with the blockchain algorithm, which was/is truly innovative as a decentralized ledger. There is nothing preventing cryptocurrencies from utilizing blockchain technology in combination with inflationary currency generating models, and in fact plenty of them do. They are less well known partially because they were later to the game, and partially because they lack the get-rich-quick pump and dump appeal of bitcoin and co.
- hanniabu 6y agoIt's a new asset class so it's in a huge growth phase. Over time it's volatility is beginning less and less and will continue to do so as the market matures.
- AngrySkillzz 6y agoThe other main reason it is not a currency is that it only processes 5 transactions per second and they cost a ridiculous amount of money ($60 at the peak in 2017). Which makes it only usable for large transfers of speculative value, not like, buying your daily coffee. It's not a currency.
- lawn 6y agoThis is only true for Bitcoin, there are many others without the transaction bottleneck and the ridiculous fees.
- selestify 6y ago> The first P2P boom invented a lot of practical services. File sharing, web hosting, audio and video streaming, video chat and all. Have you looked into all the new developments with Ethereum and defi?