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I know this will read like I am a luddite, but hear me out. I would love to consider crypto as a type of medium of exchange. Unfortunately, as soon as crypto
by WaitWaitWha 3y ago
I know this will read like I am a luddite, but hear me out.
I would love to consider crypto as a type of medium of exchange. Unfortunately, as soon as crypto came out, I saw governments of many nations moving into it in some way, shape, or form. They gave it two options, either government has full control over time or eradication, with a few outliers. The US SEC was vacillating on how to deal with crypto for quite some time, and they are not alone. Is it property or legal tender, both, or neither? Now they have planted their stake.
Cash is a tangible and disconnected way for payment for goods and services. Disconnected, as in the government (mostly) does not have instantaneous method to cripple the existence of cash. It requires significantly more interaction than just disable, for our example a government run, centralized crypto exchange (lest we forget, however you feel about politics, when governments froze or seized banked assets).
1. fear of the government wiping out all crypto assets in an instance because one disagrees with them, or more likely by an accident or hackers.
2. no transactions can be conducted if there is no electricity or device to conduct the exchange of crypto. There are many nations where power outages are scheduled as a matter of fact, or worse, power on times are scheduled. The dependence on a device is a bit more acceptable but the cost between a paper clip that holds the paper cash versus a cellular phone is still enormous.
- moldach 3y agoAuthor: "Someone needs to write an East Asian studies paper on how Tokyo became Switzerland for Asian crypto enthusiasts due to a combination of governance, network connectivity, latency, and geopolitical risk. I nominate anyone other than me." Done: "Tokyo: Asia's Crypto Haven. Unraveling the Swiss Connection in Governance and Technology" https://instabooks.ai/products/dce8add9-2d5c-ecdf-860a-38bb31e1951e?variant=47370753802586 https://instabooks.ai/products/dce8add9-2d5c-ecdf-860a-38bb3... Feel free to fact check it
- cherryteastain 3y ago> no transactions can be conducted if there is no electricity or device to conduct the exchange of crypto Same is true for fiat. Vast majority of transaction volume happens in computers these days.
- rossdavidh 3y agoMore than once, I have mentioned to someone that the vast majority of the $$ they have in the bank, do not actually physically exist anywhere, and seen otherwise intelligent people look surprised and horrified.
- Sebb767 3y agoOn the other hand, if that cash suddenly fails to appear, your physical dollars most likely won't work anymore, either (it might fail to appear for you for various reasons, but in that case, whether there was physical backing at any point is quite irrelevant).
- Horffupolde 3y ago2) you can issue some kind of physical money then periodically settle crypto. It’s not all or nothing.