Bitcoin may not be a scam, but it is certainly a make-believe asset -- maybe the perfect one for our increasingly make-believe reality.
Is Bitcoin a Scam?
31–40 of 106 posts
Re: Is Bitcoin a Scam?
#32- Proof of work is inherently wasteful. - The ever expanding blockchain is wasteful (in storage, computation, network). - Having every transaction recorded forever is the opposite of anonymity ("pseudonymous" - come on!). - The energy usage is insane. - The throughput is way too slow. While there may be an anonymous digital currency that doesn't use a lot of energy, it probably has to be based on something other than…
Yeah, the first and last points are the worst IMO. The others could be worked around maybe, but as long as it takes 3+ hours to carry out a transaction, and the resource requirements for partaking in the network are ever-increasing, I just can't see it ever scaling to be usable.
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Re: Is Bitcoin a Scam?
#33>Is x a scam because I don't understand it/I'm priced out? Uh, no. Though fiat currency is definitely a scam.
I worked with some guys and I could never work out why they were doing things the way they were. I didn't really interact with what they were doing that much so I just assumed they were experts in the area and I just didn't understand. Overtime I ended up working with them more and more and I started looking at what problems they were solving and how they were approaching it. The more I looked the more I didn't under…
The question of value is one of the most fundamental ones in economic theory. It's got nothing to do with crypto currencies or technology in general. If you really want to understand why we consider Bitcoin valuable (and btw: fiat money, too) go google for "subjective theory of value" and, more specifically, "regression theorem".
Re: Is Bitcoin a Scam?
#34- Proof of work is inherently wasteful. - The ever expanding blockchain is wasteful (in storage, computation, network). - Having every transaction recorded forever is the opposite of anonymity ("pseudonymous" - come on!). - The energy usage is insane. - The throughput is way too slow. While there may be an anonymous digital currency that doesn't use a lot of energy, it probably has to be based on something other than…
Fiat money is just as much a pyramid scheme, so the real argument becomes about monetary policy
Re: Is Bitcoin a Scam?
#35- Proof of work is inherently wasteful. - The ever expanding blockchain is wasteful (in storage, computation, network). - Having every transaction recorded forever is the opposite of anonymity ("pseudonymous" - come on!). - The energy usage is insane. - The throughput is way too slow. While there may be an anonymous digital currency that doesn't use a lot of energy, it probably has to be based on something other than…
Yeah, the first and last points are the worst IMO. The others could be worked around maybe, but as long as it takes 3+ hours to carry out a transaction, and the resource requirements for partaking in the network are ever-increasing, I just can't see it ever scaling to be usable.
> The others could be worked around maybe, but as long as it takes 3+ hours to carry out a transaction
So does bank transfers though, and we have been able to work around that for quite some time now.
Re: Is Bitcoin a Scam?
#36- Proof of work is inherently wasteful. - The ever expanding blockchain is wasteful (in storage, computation, network). - Having every transaction recorded forever is the opposite of anonymity ("pseudonymous" - come on!). - The energy usage is insane. - The throughput is way too slow. While there may be an anonymous digital currency that doesn't use a lot of energy, it probably has to be based on something other than…
The expensiveness of bitcoin comes, in part, as a consequence of removing trust from the system. Trust (that the State will accept this paper as a measure of my rights, essentially, and that this paper that someone is giving me fulfills that property) is really really expensive and has taken centuries to be built.
In that sense, a decentralized trust-less exchange system needs to replace that value (trust) with another (in this caase, proof-of-work and the huge size of the ledger).
Not easy...
Re: Is Bitcoin a Scam?
#37A minor point about the podcast: Alex Hern misunderstood the process that Craig Wright, the self-processed founder of bitcoin (Satoshi Nakamoto), needed to go through to prove that he was indeed Satoshi. Alex says that Craig needed to "move the first bitcoin ever created", while in reality Craig needed to sign a message with a private key. Because of how bitcoin is made, the very first bitcoin block (the "genesis block") cannot be spent [1].
Re: Is Bitcoin a Scam?
#38Stupid title. Could just as easily say ‘Is Cash a Scam?’
The tech may be far from ideal, but broadly labeling it as a scam is just poor journalism. How people use it can be scammy. How governments regulate it may be scammy (corrupt). But these statements can apply to cash, equities, and any other financial exchange.
Re: Is Bitcoin a Scam?
#39Reminds me of the “Those are trading sardines, not eating sardines” punchline.
Re: Is Bitcoin a Scam?
#40- Proof of work is inherently wasteful. - The ever expanding blockchain is wasteful (in storage, computation, network). - Having every transaction recorded forever is the opposite of anonymity ("pseudonymous" - come on!). - The energy usage is insane. - The throughput is way too slow. While there may be an anonymous digital currency that doesn't use a lot of energy, it probably has to be based on something other than…
All of these arguments also apply to precious metals and gemstones.
Gold, for instance, is extremely energy intensive/wasteful to mine, heavily tracked, and (until recently) had little utilitarian/industrial value outside of jewelry.