71–80 of 176 posts
Cryptocurrency continues to gain more ground but I still have my reservations about it being the currency of the future. If by design, cryptocurrency has a finite volume of transferrable currency, do early adopters have an unfair advantage that could potentially make the currency unusable? I don’t see how it could possibly be fair when earlier mining yielded currency more quickly.
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Visa is left with a valuable rewards game system where people get cash back or points or whatever. Plus the liability protections that credit cards come with. People can already use debit cards with no effort, and merchants can accept that at very minimal costs. But still, most merchants are hesitant to offer lower prices to purchases with debit card because they are betting people spend more with credit cards. I don…
I don't think their rewards system is as valuable on you might think. When the cost of visa transactions are ultimately pushed to the consumer (~3%), they will eventually realize, those rewards are not worth the cost. Off course, this will probably take some time. But in my opinion, Visa's moat is thin and mostly reliant on the behavior of their users. For US, I expect Visa to still be dominant, but not so much in ot…
Cryptocurrency continues to gain more ground but I still have my reservations about it being the currency of the future. If by design, cryptocurrency has a finite volume of transferrable currency, do early adopters have an unfair advantage that could potentially make the currency unusable? I don’t see how it could possibly be fair when earlier mining yielded currency more quickly.
Fiat currencies will probably always exist. Digital crypto assets like Bitcoin or Ethereum will exist alongside them. Bitcoin can be an asset like gold, of which users keep a portion of their networth to protect from economic uncertainty. Its deflationary policy may make it less usable as a currency, but at least crypto gives people choice.
Cryptocurrency continues to gain more ground but I still have my reservations about it being the currency of the future. If by design, cryptocurrency has a finite volume of transferrable currency, do early adopters have an unfair advantage that could potentially make the currency unusable? I don’t see how it could possibly be fair when earlier mining yielded currency more quickly.
> cryptocurrency has a finite volume of transferrable currency This is true of Bitcoin. Others, such as Ethereum, have a known inflation schedule, which would help alleviate the issue you mentioned as being a currency of the future. Furthermore, it is looking like the "currency of the future" may (at least in the short term), look more like a cryptocurrency that is worth $1 and is 1:1 backed by a dollar in a bank acc…
The idea of cryptocurrency is to replace fiat currencies, with an engineered system instead of a political system. There's no benefit in a cryptocurrency that's backed by a fiat currency. It's like building a stone house on a swamp.
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> Yes, is obviously currently extremely volatile, but it's not hard to imagine that volatility lessening over time. I feel like I’ve heard this every year since 2015. I think it’s going to be hard to shake the majority perspective that it’s a speculative asset.
I think this is one of those things where people overestimated how much things would change in the short-term, but will grossly underestimate how much they will change in the longterm. 5 years is a pretty short window in the grand scheme of things when talking about the adoption of technologies.
Are there any crypto projects that allow chargebacks? I religiously avoid using my debit card except at bank ATMs to avoid that once every few years when someone skims my credit card. That and rewards are the main value-add of a traditional payment flow at the moment.
Bitcoin allows transactions in the future. Thats effectively the same as a chargeback, since the sender of the money can decide at any point up to the time of the actual transfer to send the money elsewhere. You could theoretically design a hardware wallet (like a credit card) to only sign transactions three days into the future. That would give you three days to 'charge back' anything you don't like. Not sure mercha…
Future (possibly reversible) payments don't really give the merchant the same risk cap that a credit card authorization does.
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Fiat currencies will probably always exist. Digital crypto assets like Bitcoin or Ethereum will exist alongside them. Bitcoin can be an asset like gold, of which users keep a portion of their networth to protect from economic uncertainty. Its deflationary policy may make it less usable as a currency, but at least crypto gives people choice.
> Digital crypto assets like Bitcoin or Ethereum will exist alongside them. Bitcoin can be an asset like gold, of which users keep a portion of their networth to protect from economic uncertainty. Seems improbable, as it is far less stable than Gold. From what I see, it is almost never used as a currency, and almost always as a speculative asset. The main indicator for me is that Bitcoin is always measured in Dollars…
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> Digital crypto assets like Bitcoin or Ethereum will exist alongside them. Bitcoin can be an asset like gold, of which users keep a portion of their networth to protect from economic uncertainty. Seems improbable, as it is far less stable than Gold. From what I see, it is almost never used as a currency, and almost always as a speculative asset. The main indicator for me is that Bitcoin is always measured in Dollars…
How much gold only exists on paper? Once people realize there is more in paper than in vaults that stability may evaporate. The Germans move their physical gold out of the US for a reason
Shouldn't this even out when mining becomes too expensive and enough people adopted a cryptocurrency?
Like, aren't we simply too early for making sense of it all?
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I was having this discussion with a friend recently, arguing over what the actual use cases are for crypto, and I came to a similar conclusion. In terms of facilitating payments , cryptocurrencies are worse in almost every way I can think of compared to existing systems. They are (currently) slow, have high transaction fees, but most importantly the non-refundability of crypto transactions is a bug, not the feature c…
>They are (currently) slow, have high transaction fees This is only true for bitcoin and ethereum.