The political case for a blanket cryptocurrency ban

I'm confused. That suggests that real estate is very much resistant to inflation.

The answer is not yes, and there is clear evidence that cryptocurrencies are cancelled and created democratically.

https://vitalik.ca/general/2021/03/23/legitimacy.html (https://news.ycombinator.com/item?id=26560626) talks about the Steem/Hive split, and explains how the community democratically overrode the network owner's undemocratic decisions.

>> "Bitcoin is the textbook speculative mania for our time"

This misses the point of bitcoin entirely. People need to understand Bitcoin solves a problem: a very big problem. This problem was caused by the gov and fed defaulting on it's obligation to maintain a stable currency. As a result, cash can no longer be used as a store of value. And by artificially suppressing interest rates, the fed/gov has eliminated yet another class of investement: fixed income. So with two major asset classes eliminated: cash and fixed income, it doesn't leave much else.

The only asset classes we have remaining are equities, real estate and commodities. Real estate, there's no easy way to invest in it in a scalable way. So, what are you going to do put ALL your money in Equities? with no diversification. People desperately need a store of value, they can't just work until their 120 year old.

Bitcoin solves this problem: it's a store of value. For a lot of people, bitcoin is NOT speculation, it's a long term buy and hold asset that you hold for a long time. And the tax rules encourage such buy and hold behavior. those that are selling the moment it goes up, are going to pay dearly in capital gains taxes 30, 40, 50%+ in some states.

There's a lot of talk about building a fair system to replace the current we have, and there's a lot of good arguments to why the current system is corrupt and serves an elite. That said, all the talk about inequality and how crypto currency solves this is real rich coming from people that was already extremely privileged and would benefit almost immeasurably from it.

How is cryptocurrency different than all the other non-real digital goods that have become valuable over the years?

Games like second life and Eve did the digital currency thing way before bitcoin. How is a pretend coin you can trade for money different than a pretend game currency you can trade for money?

Because one is traded on the stock market and increasingly accepted in real world transactions?

There was and likely still is, people making livings off earning digital video game currency, selling digital assets and converting it to real money. Not to mention every person that made actual money off mmorpg marketplaces.

Seems like cryptocurrencies just remove the game part and cut right to the economic part. With games, it's the people creating the currency through their actions and time, farming gold, working in Eve, etc. With cryptocurrency it's GPUs and stuff...though I guess technically, your GPU's doing the work for the game currency too.

The concept doesn't seem to have changed, buy make-believe thing that exists only on a computer everybody agrees is worth money and the value of said make believe thing changes based on how many people have or want the make-believe thing.