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Capitalism extracts rents beyond cryptocurrency. There is an investor class. It is like the difference between Disney Dollars (utility tokens) and shares in Di

by EGreg 4y ago

Capitalism extracts rents beyond cryptocurrency. There is an investor class. It is like the difference between Disney Dollars (utility tokens) and shares in Disney Inc. The latter introduces a third “parasite” class of people into the economic system, besides customers and vendors.

smoldesu 4y ago
There's nothing that prevents an investor class from existing in cryptocurrency, too. I could give someone a loan of 100 $ETH to go start a corrupt Bitcoin tumbler, or convince a few venture capitalists to invest in a wash trading exchange. Cryptocurrency has no safeguards against that behavior, because it is administratively trustless and and judicially blind. That's a good idea for some purposes, but as a reliable store of value it's a snipe chase. Parasites will always exist as long as there's money to be made, and much like you revealed in your previous comment, starting a cryptocurrency is exceptionally lucrative if you can convince people it will be worth something. Frankly, I'd rather have a parasite class than a class that relies on thievery, scamming and miscommunication to make their money. Parasites extract money from businesses. Crypto totalitarians extract money from the working class.
- EGreg 4y ago
  Yes, "in cryptocurrency" in general it can exist. But in a particular project, such as Ethereum or Bitcoin, it doesn't because the initial people can only sell their tokens once. They don't also exert additional disproportionate influence after they've sold all their tokens, unless they also have shares. And the whole point is to move to 100% tokens and 0% shares.
  - smoldesu 4y ago
    What I'm trying to say is that your point is moot. Bitcoin, Ethereum, and every currency made in their likeness still have predatory classes of users. Value is easy to extract, the users are largely oblivious and the transaction process is complicated and new. Scammers, hucksters and VC alike is already in this market segment, you won't fool anyone. Plus, Bitcoin's creator still has a non-insignificant amount of Bitcoin set aside for them. If they're alive today, then they totally exert a disproportionate amount of influence over their own currency.

by EGreg 4y ago

smoldesu 4y ago

There's nothing that prevents an investor class from existing in cryptocurrency, too. I could give someone a loan of 100 $ETH to go start a corrupt Bitcoin tumbler, or convince a few venture capitalists to invest in a wash trading exchange. Cryptocurrency has no safeguards against that behavior, because it is administratively trustless and and judicially blind. That's a good idea for some purposes, but as a reliable store of value it's a snipe chase. Parasites will always exist as long as there's money to be made, and much like you revealed in your previous comment, starting a cryptocurrency is exceptionally lucrative if you can convince people it will be worth something. Frankly, I'd rather have a parasite class than a class that relies on thievery, scamming and miscommunication to make their money. Parasites extract money from businesses. Crypto totalitarians extract money from the working class.

EGreg 4y ago
Yes, "in cryptocurrency" in general it can exist. But in a particular project, such as Ethereum or Bitcoin, it doesn't because the initial people can only sell their tokens once. They don't also exert additional disproportionate influence after they've sold all their tokens, unless they also have shares. And the whole point is to move to 100% tokens and 0% shares.
- smoldesu 4y ago
  What I'm trying to say is that your point is moot. Bitcoin, Ethereum, and every currency made in their likeness still have predatory classes of users. Value is easy to extract, the users are largely oblivious and the transaction process is complicated and new. Scammers, hucksters and VC alike is already in this market segment, you won't fool anyone. Plus, Bitcoin's creator still has a non-insignificant amount of Bitcoin set aside for them. If they're alive today, then they totally exert a disproportionate amount of influence over their own currency.