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I don't think it's reasonable to compare cryptocurrencies to chain letters. Chain letters' sole purpose is to enrich early adopters at the expense of later par
by kloch 5y ago
I don't think it's reasonable to compare cryptocurrencies to chain letters.
Chain letters' sole purpose is to enrich early adopters at the expense of later participants.
While early adopters of cryptocurrencies frequently do reap windfall gains, it is not necessarily at the expense of later users as it is with chain letters. The early adopter benefits for cryptocurrencies are no different than early investors in a business that goes on to produce a popular and successful product.
Unlike chain letters cryptocurrencies provide a useful utility of a medium of exchange coupled with consensus based algorithmic scarcity. This is an attractive alternative to centrally planned fiat currencies that are persistently and intentionally debased over time.
Whether the power usage is worth the utilitarian benefits to societey is certainly a valid debate and hopefully will lead to more efficient protocols.
- VHRanger 5y agoCrypto is not being used in any meaningful quantity for anything except speculation and crime. While some crypto may be at some point in the future a decent medium of exchange, at this point they're all deflationary and inefficient, leading only to uses in marketing stunts (Tesla, El Salvador, etc.)
- TotHake 5y agoHot take! You left out "crypto is a bubble," "doesn't scale," and "the transaction fees!" though.
- helen___keller 5y ago> Unlike chain letters cryptocurrencies provide a useful utility of a medium of exchange coupled with consensus based algorithmic scarcity. This is an attractive alternative to centrally planned fiat currencies that are persistently and intentionally debased over time Your argument is essentially circular, that crypto isn't a pyramid scheme because it's not a pyramid scheme. I'm not trying to claim a side here, but some would say that crypto is a pyramid scheme masquerading as a legitimate tool, and that the primary function is for speculative investment. Similarly, imagine a chain letter pyramid scheme that happens to also implement a social network, and claims to not be a pyramid scheme but a networking mailing list where the early contributors happen to receive windfalls. Whether you agree that crypto is as bad as chain mail is obviously dependent on your view if crypto implements a useful product, or if it primarily exists for speculative mania and the "product" is a masquerade to build legitimacy.
- graeme 5y agoPlease explain the mechanism by which early Bitcoin investors can gain money other than by later investors putting money in