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While mining the metal probably hasn't been cheap, it's not as much a recurring cost as the cost of proof-of-work. Besides, in my part of the world at least, i

While mining the metal probably hasn't been cheap, it's not as much a recurring cost as the cost of proof-of-work. Besides, in my part of the world at least, i haven't carried cash in a decade or more, and most people i know don't either. Money is increasingly only a digital thing that exists in your (also digital) bank account. Even "micro payments" between individuals is being handled here, for a decade or so, by MobilePay[1] on the domestic side, and PayPal on the international side, with Apple Pay looking to be a close contestant to both, at least for the 55-60% of the population using iPhones. [1]: https://en.wikipedia.org/wiki/MobilePay https://en.wikipedia.org/wiki/MobilePay

leppr 4y ago
How do you handle the loss of privacy caused by using only non-cryptocurrency digital payments? Any mitigation measures one can take, or is it an all-or nothing proposition to have everything you ever buy logged? Can you see what other citizens buy, or is this privilege reserved to a few bankers, tech companies and government institutions?
- 8fingerlouie 4y ago
  Government institutions (the tax man mostly) are trying their best to limit the flow of anonymous transactions. Withdrawing a relatively large amount of cash (>=$1500) requires you to sign a form stating your intended purpose with the cash. Depositing a large amount of cash (>$750) requires documentation on how you came by this cash. Crypto is nowhere as anonymous as everybody appears to believe. Every single transaction is on the blockchain, and can be traced from acquisition to being spent. Considering that all European exchanges are now obliged to report their customer details to the authorities (under the KYC of AMLD-V EU directive), it becomes a relatively simple matter to trace your money to crypto transactions. Fortunately, Europe isn’t hit as hard with the customer profiling as the US is, and the EU is rather intent on protecting privacy, so your data purchase history is available only to youths relevant parties. In case of MobilePay, the service provider can of course see the details, but all my bank sees is a text I’ve input when sending money, or what the sender has input. It still gets reported to the tax authorities.

leppr 4y ago

How do you handle the loss of privacy caused by using only non-cryptocurrency digital payments? Any mitigation measures one can take, or is it an all-or nothing proposition to have everything you ever buy logged? Can you see what other citizens buy, or is this privilege reserved to a few bankers, tech companies and government institutions?

8fingerlouie 4y ago
Government institutions (the tax man mostly) are trying their best to limit the flow of anonymous transactions. Withdrawing a relatively large amount of cash (>=$1500) requires you to sign a form stating your intended purpose with the cash. Depositing a large amount of cash (>$750) requires documentation on how you came by this cash. Crypto is nowhere as anonymous as everybody appears to believe. Every single transaction is on the blockchain, and can be traced from acquisition to being spent. Considering that all European exchanges are now obliged to report their customer details to the authorities (under the KYC of AMLD-V EU directive), it becomes a relatively simple matter to trace your money to crypto transactions. Fortunately, Europe isn’t hit as hard with the customer profiling as the US is, and the EU is rather intent on protecting privacy, so your data purchase history is available only to youths relevant parties. In case of MobilePay, the service provider can of course see the details, but all my bank sees is a text I’ve input when sending money, or what the sender has input. It still gets reported to the tax authorities.