The ASR Cryptocurrency thread

[Pearljam5000]

I think it's a good idea to start a dedicated thread on crypto.
Let's help each other and share helpful info so we could all buy hi end speakers

 

[somebodyelse]

Given the reference to buying high end speakers I assume you're thinking about cryptocurrencies rather than cryptography, correct?

 

[JeffS7444]

You know what they say:

"The old rules no longer apply"
"The old guys are out of touch"
"It's a brave new world"

They were saying it before 2000 and 2008, and they're saying it again now. But unlike the aftermath of 2000, 2008 or even 1929, it's not clear to me that there will be any fortunes can be made in picking through the rubble of the crypto crash, because there was never any actual value in these things to begin with.

 

[pozz]

actual value

Crypto's no different from any other financial asset. Value depends on how it's used, not what it is.

 

[Berwhale]

Given the reference to buying high end speakers I assume you're thinking about cryptocurrencies rather than cryptography, correct?

Damn! I was about to dust of my old copy of Bruce Schneier's Applied Cryptography

...and now I want to read Cryptonomicon again.

 

[eddantes]

Gold brick scams... False scarcity... If Web3 is supposed to solve everything, why is there so little adoption beoynd the frothy pump-n-dump types?

No - it's true - I undestand very little of it, so perhaps I should stay silent. But every time I force myself to be open minded and to get back into trying to understand the wonders of Web3... I fall right back to skepticism. Each and every time.

 

[Honken]

"Crypto" is fascinating for sure. Very few seem to understand what it truly is, yet a lot of people seemt to be into it. But from what I gather, it seems like many are into it for pure speculation and gambling purposes, to make a quick buck rather than for ideological reasons.

In my opinion, even those who aren't in it just for a quick buck seem to miss something - if any of these currencies would become a common currency, governments would establish rules and regulations around its use quicker than you can say "taxes", or perhaps ban it outright like China.

Personally I think that proof of work-based currencies (such as BTC) are a neat concept, but are prohibitively expensive to run in practice. Not sure if there's any advantage to these currencies over our current banks for the average end user either.

 

[pozz]

why is there so little adoption beoynd the frothy pump-n-dump types?

Every major asset manager has made plans to incorporate digital assets. You're speaking from a limited perspective. Of course we all are, but my point is that you can't look at this as a passing thing.

 

[muslhead]

Every major asset manager has made plans to incorporate digital assets. You're speaking from a limited perspective. Of course we all are, but my point is that you can't look at this as a passing thing.

can you show the data that supports that claim?

 

[pozz]

can you show the data that supports that claim?

I can't. It's confidential. I work in the industry, so you'll have to take my word for it.

I'm not saying buy. I'm saying: don't be quick to dismiss.

 

[Pearljam5000]

Sorry everyone, corrected the headline
Still working on my English skills

 

[Marc v E]

Crypto may be headed for the moon but I'm more concerned about who uses it and what for. Seems the currency of choice for tax evaders, criminals and hopefull young investors. I'm sure there is much money to be made, but will it do any good?

 

[Flak]

Cryptocurrencies are ideal for criminals as transfers are not traceable so I expect that sooner or later they will be banned,
in my opinion of course

 

[mansr]

Cryptocurrencies are no different from any other Ponzi scheme.

 

[Pearljam5000]

Cryptocurrencies are no different from any other Ponzi scheme.

Maybe, but if you could profit from it than who really cares what it is?

 

[eddantes]

Every major asset manager has made plans to incorporate digital assets. You're speaking from a limited perspective. Of course we all are, but my point is that you can't look at this as a passing thing.

Oh I've no doubt that crypto is or going to be part of an asset mix of many a fund. That is not in dispute. For me it's the utility of blockchain, smart contracts, DAOs, etc. - all which seem to be, on the surface, wonderful things - but all appear to crumble as soon as one removes the speculative aspect of it. DAOs in particular sound wonderful, but as soon as we get into the workings of things we start seeing cracks - for example ennforcing the constitution against actors that are nihilistc who are willing to destroy their own value for the purpose to destroy the DAO as a whole (just one example). Again - I understand very little of it... and I am certain that there are tech solutions to many of these objections... but the more complicated the system gets the lest trust there is. Heck - if we can't trust CDC as a society, how can we trust some obscure and convoluted crypto algorithm.

 

[pozz]

Cryptocurrencies are no different from any other Ponzi scheme.

Right. Like capitalism. Don't buy into it and it will go away.

Oh I've no doubt that crypto is or going to be part of an asset mix of many a fund. That is not in dispute. For me it's the utility of blockchain, smart contracts, DAOs, etc. - all which seem to be, on the surface, wonderful things - but all appear to crumble as soon as one removes the speculative aspect of it. DAOs in particular sound wonderful, but as soon as we get into the workings of things we start seeing cracks - for example ennforcing the constitution against actors that are nihilistc who are willing to destroy their own value for the purpose to destroy the DAO as a whole (just one example). Again - I understand very little of it... and I am certain that there are tech solutions to many of these objections... but the more complicated the system gets the lest trust there is. Heck - if we can't trust CDC as a society, how can we trust some obscure and convoluted crypto algorithm.

Yeah, I can't comment on the overall stability. I know a lot of contextual things about the asset class which are promising and others scary, but not enough to give advice.

 

[mansr]

Maybe, but if you could profit from it than who really cares what it is?

Robbing banks can be profitable too.

 

[Pearljam5000]

Robbing banks can be profitable too.

But this is legal and harms no one, so there's a tiny difference

 

[mansr]

But this is legal and harms no one, so there's a tiny difference

It harms those who failed to cash out in time when the whole thing collapses.