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> Domestic currency controls seem to offer all sorts of arbitrage possibilities that can be exploited using crypto currencies, the cycle usually goes -> some we

> Domestic currency controls seem to offer all sorts of arbitrage possibilities that can be exploited using crypto currencies, the cycle usually goes -> some weak currency -> somehow convert to crypto -> sell crypto for USD -> sell USD back for that same weak domestic currency with a markup. That isnt evading currency controls, that is arbitraging domestic currency controls. Evading currency controls looks like this: earn rubley-pesos, convert to crypto, convert to USD, stuff under matress. These so called weak states and failing economies all around the world have had secondary markets (mostly in USD - see the blue dollar in argentina as just one example) since before the birth of satoshi, let alone the birth of cryptocurrency. Its not some great new trick invented by bitcoin.

disgruntledphd2 5y ago
It probably makes it a lot easier for people with ridiculous amounts of money and strong capital controls to transfer assets abroad. Like, the Chinese government cracked down hard on Bitcoin, and while the energy stuff was definitely a factor, I'd be really surprised if cracking down on ways to to take money out of the Chinese economy wasn't also a factor.
TheColorYellow 5y ago
What actual digital currency markets have existed in Argentina or any other weak state prior to Bitcoin? All of these dark markets where cash only markets before, precisely because prior to Bitcoin you always needed a reliable state sponsored intermediary for online transactions. This is not a tick.
- drekk 5y ago
  Crypto doesn’t offer anything new over the blue dollar market besides digitizing it at a huge energy markup. If you're converting your crypto back to fiat you're still needing a reliable state sponsored intermediary at some point in the pipeline. Most people don't really trade flash drives with coins anymore, they use Coinbase or something that has their government ID on file. And it's not like the conversion rate from Argentine pesos to Ethereum or whatever is very favorable — it's the same as the conversion to dollars. You can argue it's more stable than Argentine pesos but that's a really low bar to clear with 50% yearly inflation. Dollars also are more stable and don't require any technology or technical knowledge. What it has mainly enabled is for people in these "weaker states" to take advantage of public goods like electricity subsidies to "mine" (read: verifiably waste energy) whatever FotM crypto and dump it for the next cycle. I'm not sure why it's controversial to dislike rewarding people for wasting a very disproportionate amount of energy in a public way.

disgruntledphd2 5y ago

It probably makes it a lot easier for people with ridiculous amounts of money and strong capital controls to transfer assets abroad. Like, the Chinese government cracked down hard on Bitcoin, and while the energy stuff was definitely a factor, I'd be really surprised if cracking down on ways to to take money out of the Chinese economy wasn't also a factor.

TheColorYellow 5y ago

What actual digital currency markets have existed in Argentina or any other weak state prior to Bitcoin? All of these dark markets where cash only markets before, precisely because prior to Bitcoin you always needed a reliable state sponsored intermediary for online transactions. This is not a tick.

drekk 5y ago
Crypto doesn’t offer anything new over the blue dollar market besides digitizing it at a huge energy markup. If you're converting your crypto back to fiat you're still needing a reliable state sponsored intermediary at some point in the pipeline. Most people don't really trade flash drives with coins anymore, they use Coinbase or something that has their government ID on file. And it's not like the conversion rate from Argentine pesos to Ethereum or whatever is very favorable — it's the same as the conversion to dollars. You can argue it's more stable than Argentine pesos but that's a really low bar to clear with 50% yearly inflation. Dollars also are more stable and don't require any technology or technical knowledge. What it has mainly enabled is for people in these "weaker states" to take advantage of public goods like electricity subsidies to "mine" (read: verifiably waste energy) whatever FotM crypto and dump it for the next cycle. I'm not sure why it's controversial to dislike rewarding people for wasting a very disproportionate amount of energy in a public way.