7 ms·

They should mention this in their website: Cryptocurrencies are harmful to the banking system and may weaken the state apparatus. Hence, citizens shouldn’t buy

They should mention this in their website: Cryptocurrencies are harmful to the banking system and may weaken the state apparatus. Hence, citizens shouldn’t buy them.

gzer0 5y ago
And equally so, they should mention that scammers around the world took home a record $14 billion in cryptocurrency in 2021, thanks in large part to the rise of DeFi [1]. This is a public information campaign; the sole purpose is to provide public awareness information on digital asset security and how to ensure it remains secure. [1] https://www.cnbc.com/2022/01/06/crypto-scammers-took-a-record-14-billion-in-2021-chainalysis.html https://www.cnbc.com/2022/01/06/crypto-scammers-took-a-recor...
- fullstop 5y ago
  I can't find a good number on this, but I would have to assume that scammers still take more fiat through phone scams and things of that nature. I have to hand it to the cryptocurrency scammers, though, they are definitely more sophisticated than phone scammers.
- nyolfen 5y ago
  fraud and scams are double-digit percentages of the 'real' economy
- sharperguy 5y ago
  Most ICOs, NFTs and smart contracts are just more complicated versions of regular securities, that evade regulation simply by taking advantage of the time lag that authorities have in terms of understanding them and enforcing existing regulation. If you look under the hood, each supposedly decentralized, non-custodial service tends to have a centralized component coordinating or in some way controlling the entire thing. For example, a platform that pegs the value of an asset on the Ethereum blockchain to the US dollar, could depend on a single server to inject information about the price of the US dollar in terms of Ethereum or smart contract tokens.
  - thebean11 5y ago
    Most do not depend on a single server for price feeds, they use a quorum of independent servers operated by different entities. The data is then combined on chain, and on chain code flags if there is disagreement on the price. https://data.chain.link/ https://data.chain.link/
tern 5y ago
The opposite may be the case in the long-term. Cryptocurrency ownership may shift global power and non-participation could be harmful to the state, in the same way participation in the global economy may weaken the national economy, but strengthens it from the perspective of the neoliberal order.
- Consultant32452 5y ago
  Prediction: Western currencies are on the way out. The US in particular can never repay its debt, it can't even normalize interest rates because it can't afford the interest. What will replace it is government-issued crypto-currency that will give them total control over how you spend money. If the Mayor of New York doesn't want you to buy soda, your currency will not be capable of being traded for soda in NYC.
  - lupire 5y ago
    The government likes it's debt. If they had (only) crypto, first thing they'd do is borrow more of it, or, if that's impossible, create it using tax-funded supercomputers, which is even worse than printing it the old way.
    - Consultant32452 5y ago
      Yes, of course, they will have total control over the supply of coins.
  - prox 5y ago
    Isn’t that exact opposite of what pro cryptocurrency folks usually mention? That it’s untraceable and able to give power to the common people?
    - jimmydorry 5y ago
      I think you mean: "permissionless" and "self-custodial". Yes, a GovCoin would be antithetical to the current crop of crypto. That doesn't preclude a GovCoin from being wildly popular and useful though!
danuker 5y ago
I argue that they strengthen the "state apparatus". Through competing with the national currency, cryptos force it to innovate and become faster, more resilient, more inclusive, and less prone to inflation. The fact that more and more capital is directed towards them is a symptom of the fact the national currencies have shortcomings.
- jeremyjh 5y ago
  > The fact that more and more capital is directed towards them is a symptom of the fact the national currencies have shortcomings. I literally laughed out loud. People buy crypto because they think it will rise in value, nor because it has any relevance as a currency (outside of certain illicit markets).
  - Consultant32452 5y ago
    Deflationary currency encourages savings, inflationary currency encourages spending. We're just so accustomed to a world where our money is steadily becoming worthless that sometimes we forget there are other options.
    - jeremyjh 5y ago
      Deflation has nothing to do with it, its purely driven by speculation.
      - Consultant32452 5y ago
        Speculation is just an emotional word used to throw you off the scent. You are also speculating about the future value of the dollar.
        jeremyjh 5y ago
        Its true that fiat money's value is somewhat speculative, but speculation still has a specific meaning. It means you are investing not because you believe in the future value proposition of the asset (such as dividend payments, or liquidity value increase if all fixed assets of an enterprise were sold), but only because you expect the market price to increase. Often you expect the market price to increase for no reason other than you know many other people are speculating, so there is really no there, there.
ramraj07 5y ago
They should also say, “We know a lot of idiots you know might have become millionaires, but that doesn’t mean you too will become a millionaire. Not anymore at least.”

They should mention this in their website: Cryptocurrencies are harmful to the banking system and may weaken the state apparatus. Hence, citizens shouldn’t buy them.

gzer0 5y ago

And equally so, they should mention that scammers around the world took home a record $14 billion in cryptocurrency in 2021, thanks in large part to the rise of DeFi [1]. This is a public information campaign; the sole purpose is to provide public awareness information on digital asset security and how to ensure it remains secure. [1] https://www.cnbc.com/2022/01/06/crypto-scammers-took-a-record-14-billion-in-2021-chainalysis.html https://www.cnbc.com/2022/01/06/crypto-scammers-took-a-recor...

fullstop 5y ago
I can't find a good number on this, but I would have to assume that scammers still take more fiat through phone scams and things of that nature. I have to hand it to the cryptocurrency scammers, though, they are definitely more sophisticated than phone scammers.
nyolfen 5y ago
fraud and scams are double-digit percentages of the 'real' economy
sharperguy 5y ago
Most ICOs, NFTs and smart contracts are just more complicated versions of regular securities, that evade regulation simply by taking advantage of the time lag that authorities have in terms of understanding them and enforcing existing regulation. If you look under the hood, each supposedly decentralized, non-custodial service tends to have a centralized component coordinating or in some way controlling the entire thing. For example, a platform that pegs the value of an asset on the Ethereum blockchain to the US dollar, could depend on a single server to inject information about the price of the US dollar in terms of Ethereum or smart contract tokens.
- thebean11 5y ago
  Most do not depend on a single server for price feeds, they use a quorum of independent servers operated by different entities. The data is then combined on chain, and on chain code flags if there is disagreement on the price. https://data.chain.link/ https://data.chain.link/

tern 5y ago

The opposite may be the case in the long-term. Cryptocurrency ownership may shift global power and non-participation could be harmful to the state, in the same way participation in the global economy may weaken the national economy, but strengthens it from the perspective of the neoliberal order.

Consultant32452 5y ago
Prediction: Western currencies are on the way out. The US in particular can never repay its debt, it can't even normalize interest rates because it can't afford the interest. What will replace it is government-issued crypto-currency that will give them total control over how you spend money. If the Mayor of New York doesn't want you to buy soda, your currency will not be capable of being traded for soda in NYC.
- lupire 5y ago
  The government likes it's debt. If they had (only) crypto, first thing they'd do is borrow more of it, or, if that's impossible, create it using tax-funded supercomputers, which is even worse than printing it the old way.
  - Consultant32452 5y ago
    Yes, of course, they will have total control over the supply of coins.
- prox 5y ago
  Isn’t that exact opposite of what pro cryptocurrency folks usually mention? That it’s untraceable and able to give power to the common people?
  - jimmydorry 5y ago
    I think you mean: "permissionless" and "self-custodial". Yes, a GovCoin would be antithetical to the current crop of crypto. That doesn't preclude a GovCoin from being wildly popular and useful though!

danuker 5y ago

I argue that they strengthen the "state apparatus". Through competing with the national currency, cryptos force it to innovate and become faster, more resilient, more inclusive, and less prone to inflation. The fact that more and more capital is directed towards them is a symptom of the fact the national currencies have shortcomings.

jeremyjh 5y ago
> The fact that more and more capital is directed towards them is a symptom of the fact the national currencies have shortcomings. I literally laughed out loud. People buy crypto because they think it will rise in value, nor because it has any relevance as a currency (outside of certain illicit markets).
- Consultant32452 5y ago
  Deflationary currency encourages savings, inflationary currency encourages spending. We're just so accustomed to a world where our money is steadily becoming worthless that sometimes we forget there are other options.
  - jeremyjh 5y ago
    Deflation has nothing to do with it, its purely driven by speculation.
    - Consultant32452 5y ago
      Speculation is just an emotional word used to throw you off the scent. You are also speculating about the future value of the dollar.
      - jeremyjh 5y ago
        Its true that fiat money's value is somewhat speculative, but speculation still has a specific meaning. It means you are investing not because you believe in the future value proposition of the asset (such as dividend payments, or liquidity value increase if all fixed assets of an enterprise were sold), but only because you expect the market price to increase. Often you expect the market price to increase for no reason other than you know many other people are speculating, so there is really no there, there.

ramraj07 5y ago

They should also say, “We know a lot of idiots you know might have become millionaires, but that doesn’t mean you too will become a millionaire. Not anymore at least.”