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I'm a bit of a cryptocurrency newbie, but I know enough about it to know that centralized exchanges are not what cryptocurrency is really about. It's more about

I'm a bit of a cryptocurrency newbie, but I know enough about it to know that centralized exchanges are not what cryptocurrency is really about. It's more about spending with cryptocurrency (in a decentralized way) instead of exchanging some fiat for it, and vice versa, no? It's a bit of chicken and egg problem I suppose (If I want Bitcoin I need some fiat to get it in some cases), unless I acquire Bitcoin via some other method (like stealing/mining it)? Edit: Also: Since most people need USD to get Bitcoin (or other coins), doesn't that mean all cryptocurrencies are inherently gold-backed and rely on the value-store of gold? (Excuse my naive question. Again; I'm a newbie).

tjansen 5y ago
I think that very few people are actually paying with cryptocurrency right now. As long as it's as volatile as today (and in the case of BTC, transactions are so expensive and slow), it's mostly speculation about which system may be used in the future.
BLanen 5y ago
> spending with cryptocurrency It hasn't been about actually using it for years now.
thinkmassive 5y ago
Or acquire it the same way you presumably acquire USD: work and get paid in it. Kinda weird you left that out but mentioned stealing, although I suppose ransomware is top of mind these days.
- ______- 5y ago
  > acquire USD Are you saying Bitcoin and other cryptocurrencies are inherently gold-backed like the USD?
  - bmm6o 5y ago
    https://en.m.wikipedia.org/wiki/Gold_standard https://en.m.wikipedia.org/wiki/Gold_standard covers its abandonment, including by USD
afavour 5y ago
People realised some time ago that Bitcoin isn't actually fit for purpose for most payments because transactions take so long to close. So it's now pivoted to this value idea of storing "value". Absolute house of cards.
- nceqs3 5y ago
  Transaction fees are over $10 right now!
- varispeed 5y ago
  It's not even that. The two main problems are that Bitcoin in non fungible - that is 1 BTC != 1 BTC, and that comes from the second problem - BTC isn't anonymous, in the sense that all transactions are publicly available and there are tools already that give great deal of deanonymisation capabilities. Now if you use a tumbler to get "fresh" coins, it may be that some of the source coins were involved in hacks or drug deals and are blacklisted. This means when you'll try to withdraw you likely get them confiscated and get yourself in trouble.
toyg 5y ago
> It's more about spending with cryptocurrency (in a decentralized way) That was the original intent, but it's been known for years now that cryptocurrencies just don't work for that scenario. As soon as volume grows, transaction times and costs soar to levels that are unsustainable for actual payments. So most cryptocurrencies have since turned into speculative digital commodities, arbitrary items that get value out of being unregulated, transnational, and anonymous or pseudonymous. They allow money to flow internationally outside of the official banking system, untroubled by pesky anti-money-laundering laws or anything protecting investors. Exchanges on the fringes deal with the trouble of converting them back into money and goods... at least as long as governments allow them to do it.

tjansen 5y ago

I think that very few people are actually paying with cryptocurrency right now. As long as it's as volatile as today (and in the case of BTC, transactions are so expensive and slow), it's mostly speculation about which system may be used in the future.

BLanen 5y ago

> spending with cryptocurrency It hasn't been about actually using it for years now.

thinkmassive 5y ago

Or acquire it the same way you presumably acquire USD: work and get paid in it. Kinda weird you left that out but mentioned stealing, although I suppose ransomware is top of mind these days.

______- 5y ago
> acquire USD Are you saying Bitcoin and other cryptocurrencies are inherently gold-backed like the USD?
- bmm6o 5y ago
  https://en.m.wikipedia.org/wiki/Gold_standard https://en.m.wikipedia.org/wiki/Gold_standard covers its abandonment, including by USD

afavour 5y ago

People realised some time ago that Bitcoin isn't actually fit for purpose for most payments because transactions take so long to close. So it's now pivoted to this value idea of storing "value". Absolute house of cards.

nceqs3 5y ago
Transaction fees are over $10 right now!
varispeed 5y ago
It's not even that. The two main problems are that Bitcoin in non fungible - that is 1 BTC != 1 BTC, and that comes from the second problem - BTC isn't anonymous, in the sense that all transactions are publicly available and there are tools already that give great deal of deanonymisation capabilities. Now if you use a tumbler to get "fresh" coins, it may be that some of the source coins were involved in hacks or drug deals and are blacklisted. This means when you'll try to withdraw you likely get them confiscated and get yourself in trouble.

toyg 5y ago

> It's more about spending with cryptocurrency (in a decentralized way) That was the original intent, but it's been known for years now that cryptocurrencies just don't work for that scenario. As soon as volume grows, transaction times and costs soar to levels that are unsustainable for actual payments. So most cryptocurrencies have since turned into speculative digital commodities, arbitrary items that get value out of being unregulated, transnational, and anonymous or pseudonymous. They allow money to flow internationally outside of the official banking system, untroubled by pesky anti-money-laundering laws or anything protecting investors. Exchanges on the fringes deal with the trouble of converting them back into money and goods... at least as long as governments allow them to do it.