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Ask HN: What real world problem does cryptocurrency solve?

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Re: Ask HN: What real world problem does cryptocurrency solve?

#131

Post by D13Fd »

erc20 wrote: post #129
D13Fd wrote: post #126

Earlier quoted context omitted.

It sounds like to are still forced to trust a third party exchange, and you now cannot accept payment from customers unless they pay in a cryptocurrency (USDC). Is that right? How is this better than a third party intermediary who takes dollars and sends you dollars?

In the current market a third party intermediary who takes dollars and sends dollars, e.g. credit cards, the costs of accepting a payment range from 10 cents to 3% of the transaction value. This can be higher than the use of USDC on the polygon network. There may be a delay measured in days or hours between accepting a payment, and the payment reaching your bank account. This compares to a USDC transfer taking second…

That sounds like it can be cheaper and faster in terms of actual money in your hands - but that benefit has nothing to do with cryptocurrency itself, any remake of the financial system could have those properties.

The payment provider and the bank are separate. It seems to me that you could substitute the word “bank account” for “wallet” in your second paragraph and it would still be true. Bank accounts have very well proven reliability at this point, plus the fact that currency in a bank account does not fluctuate in value like a stock. So again, it’s hard to see how that virtue is unique to cryptocurrency.

Re: Ask HN: What real world problem does cryptocurrency solve?

#132

Post by erc20 »

D13Fd wrote: post #131
erc20 wrote: post #129

Earlier quoted context omitted.

In the current market a third party intermediary who takes dollars and sends dollars, e.g. credit cards, the costs of accepting a payment range from 10 cents to 3% of the transaction value. This can be higher than the use of USDC on the polygon network. There may be a delay measured in days or hours between accepting a payment, and the payment reaching your bank account. This compares to a USDC transfer taking second…

That sounds like it can be cheaper and faster in terms of actual money in your hands - but that benefit has nothing to do with cryptocurrency itself, any remake of the financial system could have those properties. The payment provider and the bank are separate. It seems to me that you could substitute the word “bank account” for “wallet” in your second paragraph and it would still be true. Bank accounts have very wel…

> any remake of the financial system could have those properties.

Yes, and cryptocurrency is one take on it, while adoption is still early, it has traction, more so than previous attempts.

Central banks are also working in this area with CBDC's, they can see the benefits of bypassing corporate financial intermediaries too.

We can use bank accounts to gain similar benefits, if it's remade or improved, though the retail banking industry is very resource intensive compared to running the Polygon network.

What other remake are you aware of, people can work with today?

Re: Ask HN: What real world problem does cryptocurrency solve?

#133

Post by D13Fd »

erc20 wrote: post #132
D13Fd wrote: post #131

Earlier quoted context omitted.

That sounds like it can be cheaper and faster in terms of actual money in your hands - but that benefit has nothing to do with cryptocurrency itself, any remake of the financial system could have those properties. The payment provider and the bank are separate. It seems to me that you could substitute the word “bank account” for “wallet” in your second paragraph and it would still be true. Bank accounts have very wel…

> any remake of the financial system could have those properties. Yes, and cryptocurrency is one take on it, while adoption is still early, it has traction, more so than previous attempts. Central banks are also working in this area with CBDC's, they can see the benefits of bypassing corporate financial intermediaries too. We can use bank accounts to gain similar benefits, if it's remade or improved, though the retai…

My point is just that the “crypto” part of cryptocurrency seems disconnected from the advantages you names.

Re: Ask HN: What real world problem does cryptocurrency solve?

#134

Post by erc20 »

D13Fd wrote: post #133
erc20 wrote: post #132

Earlier quoted context omitted.

> any remake of the financial system could have those properties. Yes, and cryptocurrency is one take on it, while adoption is still early, it has traction, more so than previous attempts. Central banks are also working in this area with CBDC's, they can see the benefits of bypassing corporate financial intermediaries too. We can use bank accounts to gain similar benefits, if it's remade or improved, though the retai…

My point is just that the “crypto” part of cryptocurrency seems disconnected from the advantages you names.

There are probably other ways to achieve the same, but the Polygon network is a very efficient means to do so. It's an implementation detail that gives a small edge to remaking and improving the financial system.

However, it could be, at the end of it, by spurring competition, we have Central Bank CBDC's bypassing the retail bank to build a relationship with all currency users instead of cryptocurrency specifically replacing the financial system. That's another way to go about it.

Cryptocurrency have demonstrated the fundamentals of technology are mature enough, the retail bank, financial institutions, and the billions of dollars they earn being an inefficient middle man recording shared facts, it's ripe for disruption from two ends - Towards complete centralisation at the central bank (blockchain or not), or towards decentralisation via cryptocurrency.

Re: Ask HN: What real world problem does cryptocurrency solve?

#135

Post by lifeisstillgood »

lifeisstillgood wrote: post #54

I have been noodling on this for a bit and this is just trying to get some thoughts out: The base fundamental use case is this: We (humanity) need a digital native currency. If I can web / email / interact with pretty much any human on the planet, over a commonly owned and shared infrastructure using openly developed protocols and software, why can't I send / receive money from them too? Pretty much every other use c…

Edit on reread : People aren't stupid

Re: Ask HN: What real world problem does cryptocurrency solve?

#136

Post by knapcio »

D13Fd wrote: post #130
knapcio wrote: post #50

That’s an excellent question. I’ve been thinking about this topic a lot. Here’s some problems I think a good cryptocurrency solves: - Trust: you don’t need to trust any authority or money emitter when using a cryptocurrency. - Anti-inflation: It’s not possible to print e.g. bitcoin so you are not hit by the “inflation tax” - Nowadays, governments and other institutions can easily block a bank account with very little…

You still have to trust the exchanges. Governments can absolutely still imprison you or seize your other property until you pay your taxes. The value fluctuates wildly and can collapse at any instant. Unlike gold or many other assets, it has zero intrinsic value.

You can use decentralised exchanges or websites like localbitcoins to avoid any institutions.

Re: Ask HN: What real world problem does cryptocurrency solve?

#140

Post by Mirb »

Cryptocurrencies should address the better distribution of money around the world and contribute to financial independence for people around the world. Unfortunately, there were many scams in the Crypto world, but this will be regulated more and more in the next period, although from the very beginning it should have been more regulated and more human rights activists involved, because the crypto world is a great opportunity for the wider good.
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