4 ms·

The most questionable part about cryptocurrencies at this point is that the defence arguments keep shifting. First it was to get rid of banks, then it was to wo

The most questionable part about cryptocurrencies at this point is that the defence arguments keep shifting. First it was to get rid of banks, then it was to workaround autocratic regimes, and now it is about having an elastic electricity demand? Cryptocurrencies are still a solution in search of a problem. The search has cost billions of dollars and multiple years so far. Maybe it’s time to call it a day?

bhawks 3y ago
You're certainly entitled to choose non-crypto solutions to whatever problems you face but saying that crypto isn't solving those problems for other people is just ignoring the facts. Crypto continues to be a store of wealth and tool of commerce in countries like Turkey and Argentina. High throughput payment networks (lightening, ethereums L2 ecosystem) are delivering low latency and low fee transactions with strong security guarantees. On chain definitely rivals centralized exchanges trading volumes while providing lending / borrow facilities. And in this case of electrical demand there is a happy coincidence between Bitcoin miners and grid operators. All this without massive public subsides, completely voluntary participation, and no government bailouts. So it'll probably be a while before everyone decides to call it a day.
- jwestbury 3y ago
  Latency and fees are higher than existing mechanisms in most of the world, and at much higher environmental cost. Also, crypto is an objectively riskier "store of wealth" than traditional measures, and is mostly used as a speculative investment or an arbitrage opportunity.
  - bhawks 3y ago
    > Latency and fees are higher than existing mechanisms in most of the world, and at much higher environmental cost. This statement is simply incorrect. The later 2 scaling ecosystems built on top of Bitcoin and Ethereum offer 1-2 second transaction times for 3-4 cents in fees. The electrical costs are equivalent to sending an email. https://lightning.network/ https://lightning.network/ https://www.optimism.io/ https://www.optimism.io/ https://arbitrum.io/ https://arbitrum.io/ https://ethereum.org/en/layer-2/ https://ethereum.org/en/layer-2/ > Also, crypto is an objectively riskier "store of wealth" than traditional measures, and is mostly used as a speculative investment or an arbitrage opportunity. In a country like Argentina where inflation is over 100% the risk of holding crypto seems to be a much better deal than a savings account. https://www.bloomberg.com/features/2023-argentina-presidential-elections-inflation/?in_source=embedded-checkout-banner https://www.bloomberg.com/features/2023-argentina-presidenti...
scotty79 3y ago
> now it is about having an elastic electricity demand? Now? I've been saying this for years now. It's a load on demand and a way to monetize any amount of excess energy in distributed manner. One of the potential future of bitcoin is to provide monetization that can let investors overbuild renewables so that they can fully cover regular demand in times where production is just a few percent of full capacity. > Cryptocurrencies are still a solution in search of a problem. Cryptos are just a thing that exists. Applications turn up as economy develops in new directions and landscape changes.

bhawks 3y ago

You're certainly entitled to choose non-crypto solutions to whatever problems you face but saying that crypto isn't solving those problems for other people is just ignoring the facts. Crypto continues to be a store of wealth and tool of commerce in countries like Turkey and Argentina. High throughput payment networks (lightening, ethereums L2 ecosystem) are delivering low latency and low fee transactions with strong security guarantees. On chain definitely rivals centralized exchanges trading volumes while providing lending / borrow facilities. And in this case of electrical demand there is a happy coincidence between Bitcoin miners and grid operators. All this without massive public subsides, completely voluntary participation, and no government bailouts. So it'll probably be a while before everyone decides to call it a day.

jwestbury 3y ago
Latency and fees are higher than existing mechanisms in most of the world, and at much higher environmental cost. Also, crypto is an objectively riskier "store of wealth" than traditional measures, and is mostly used as a speculative investment or an arbitrage opportunity.
- bhawks 3y ago
  > Latency and fees are higher than existing mechanisms in most of the world, and at much higher environmental cost. This statement is simply incorrect. The later 2 scaling ecosystems built on top of Bitcoin and Ethereum offer 1-2 second transaction times for 3-4 cents in fees. The electrical costs are equivalent to sending an email. https://lightning.network/ https://lightning.network/ https://www.optimism.io/ https://www.optimism.io/ https://arbitrum.io/ https://arbitrum.io/ https://ethereum.org/en/layer-2/ https://ethereum.org/en/layer-2/ > Also, crypto is an objectively riskier "store of wealth" than traditional measures, and is mostly used as a speculative investment or an arbitrage opportunity. In a country like Argentina where inflation is over 100% the risk of holding crypto seems to be a much better deal than a savings account. https://www.bloomberg.com/features/2023-argentina-presidential-elections-inflation/?in_source=embedded-checkout-banner https://www.bloomberg.com/features/2023-argentina-presidenti...

scotty79 3y ago

> now it is about having an elastic electricity demand? Now? I've been saying this for years now. It's a load on demand and a way to monetize any amount of excess energy in distributed manner. One of the potential future of bitcoin is to provide monetization that can let investors overbuild renewables so that they can fully cover regular demand in times where production is just a few percent of full capacity. > Cryptocurrencies are still a solution in search of a problem. Cryptos are just a thing that exists. Applications turn up as economy develops in new directions and landscape changes.