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With "big" companies coming in on the Crypto bandwagon is Crypto really worth anything? I don't understand (and maybe someone can explain it to me) how Crypto

With "big" companies coming in on the Crypto bandwagon is Crypto really worth anything? I don't understand (and maybe someone can explain it to me) how Crypto is for "the little guy" when those who started out at the beginning have "all" the crypto already. There is no way I am going to be able to "mine" more crypto than those who started years before me or those who have more "traditional" money than me currently to buy crypto. It's still money. It's still a bond, a promissory note; it's not real and is only worth what the big guys (whether traditional or crytpo big guys) say it is worth. But I am no economist or financial expert. So why should I use crypto? I'm still at the bottom in that game.

XorNot 6y ago
This is what people are talking about when they note the problems of deflationary currency.
reedf1 6y ago
It allows you to be your own bank - you aren't depending on any central authority to allow you access to your "cash". This might be one of those things that is Not For You if you can't think of a use for it, and that is Okay.
uberswe 6y ago
So the difference is that there is no central authority that can just print more crypto. It's decentralised which means you don't need a bank, bank card or ATMs, you can store your crypto on a piece of paper. So the big guys can own a lot of crypto or a lot of dollars, with crypto there are no banks for them to control and no government to print out new notes.
- chii 6y ago
  But looking at this paypal payment, you cannot use your own crypto from your own stick, but have to first sell that crypto to USD, transfer that USD to paypal, then purchase crypto back in paypal, in order to spend it.
- throwawayzRUU6f 6y ago
  Is there anything preventing large players like exchanges or payment processors from adopting fractional reserves? That's effectively printing more crypto by centralized authorities.
  - MrMan 6y ago
    I would rather have the Fed acting as my central bank than a private corporation
vmception 6y ago
That's a fascinating list full of conflicting ideas, is there any circumstance where your first question is ever true? Go earn some crypto. People will pay you in it. If you want goods and services, go get cash with it or.... deposit it in Paypal as of today lol. What specific standard do you need crypto to meet? Answer that for yourself. I'm fine with it.
- cstever 6y ago
  That's the nature of my understanding of crypto and why I asked the question. I don't know if Big Companies can dilute the effectiveness of crytpo. It's why I asked. Maybe off topic for this HN post. I don't know. Cryto intrigues me with the thought of a decentralized currency, but does it level the playing field? I don't know.
  - vmception 6y ago
    Which playing field? I really don't know which pitch you are latching on to. Crypto does not address the reality that people who have a lot of resources can simply buy a lot of crypto. It doesn't attempt to. There have been time periods, including now, where people with a lot of resources are ignoring crypto because the world is comfortable enough for them, and you can buy before they or their heirs do. The entire decade has been that way and it has been completely accurate, and it is also accurate that this makes a lot of people uncomfortable about the sustainability of the exchange rates. Crypto addresses other playing fields. There are many intermediary liquid systems (cryptocurerncies) that you can use to send unlimited amounts to people anywhere in the world, and they can cash out in their own local currency. All the other systems had limits because governments controlled the financial institution running the system. This has nothing to do with you deciding to own a lot more crypto than you need at that point in time, it is also accurate that a lot of people do keep excess holdings because they realize that they never have to go back to the local currency, and realize that others will come to that same conclusion too. There are many other areas that crypto does okay at, and is working to get better at.
    - cstever 6y ago
code_duck 6y ago
>There is no way I am going to be able to "mine" more crypto than those who started years before me or those who have more "traditional" money than me currently to buy crypto I have the same problem with US dollars, that some people have more than I do, but I still use dollars often.
- cstever 6y ago
  I just thought Crypto would level the playing field. that seems to be a misconception on my part. Sounds like it's more that I can have access to my money all the time because of a centralized system. Although I am finding in research that there are centralized Crypto exchanges. So I need to figure out how that is different.

XorNot 6y ago

This is what people are talking about when they note the problems of deflationary currency.

reedf1 6y ago

It allows you to be your own bank - you aren't depending on any central authority to allow you access to your "cash". This might be one of those things that is Not For You if you can't think of a use for it, and that is Okay.

uberswe 6y ago

So the difference is that there is no central authority that can just print more crypto. It's decentralised which means you don't need a bank, bank card or ATMs, you can store your crypto on a piece of paper. So the big guys can own a lot of crypto or a lot of dollars, with crypto there are no banks for them to control and no government to print out new notes.

chii 6y ago
But looking at this paypal payment, you cannot use your own crypto from your own stick, but have to first sell that crypto to USD, transfer that USD to paypal, then purchase crypto back in paypal, in order to spend it.
throwawayzRUU6f 6y ago
Is there anything preventing large players like exchanges or payment processors from adopting fractional reserves? That's effectively printing more crypto by centralized authorities.
- MrMan 6y ago
  I would rather have the Fed acting as my central bank than a private corporation

vmception 6y ago

That's a fascinating list full of conflicting ideas, is there any circumstance where your first question is ever true? Go earn some crypto. People will pay you in it. If you want goods and services, go get cash with it or.... deposit it in Paypal as of today lol. What specific standard do you need crypto to meet? Answer that for yourself. I'm fine with it.

cstever 6y ago
That's the nature of my understanding of crypto and why I asked the question. I don't know if Big Companies can dilute the effectiveness of crytpo. It's why I asked. Maybe off topic for this HN post. I don't know. Cryto intrigues me with the thought of a decentralized currency, but does it level the playing field? I don't know.
- vmception 6y ago
  Which playing field? I really don't know which pitch you are latching on to. Crypto does not address the reality that people who have a lot of resources can simply buy a lot of crypto. It doesn't attempt to. There have been time periods, including now, where people with a lot of resources are ignoring crypto because the world is comfortable enough for them, and you can buy before they or their heirs do. The entire decade has been that way and it has been completely accurate, and it is also accurate that this makes a lot of people uncomfortable about the sustainability of the exchange rates. Crypto addresses other playing fields. There are many intermediary liquid systems (cryptocurerncies) that you can use to send unlimited amounts to people anywhere in the world, and they can cash out in their own local currency. All the other systems had limits because governments controlled the financial institution running the system. This has nothing to do with you deciding to own a lot more crypto than you need at that point in time, it is also accurate that a lot of people do keep excess holdings because they realize that they never have to go back to the local currency, and realize that others will come to that same conclusion too. There are many other areas that crypto does okay at, and is working to get better at.
  - cstever 6y ago

code_duck 6y ago

>There is no way I am going to be able to "mine" more crypto than those who started years before me or those who have more "traditional" money than me currently to buy crypto I have the same problem with US dollars, that some people have more than I do, but I still use dollars often.

cstever 6y ago
I just thought Crypto would level the playing field. that seems to be a misconception on my part. Sounds like it's more that I can have access to my money all the time because of a centralized system. Although I am finding in research that there are centralized Crypto exchanges. So I need to figure out how that is different.