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https://twitter.com/FatManTerra/status/1527153694218797058
And they’re a YCombinator company!!! https://www.ycombinator.com/companies/stablegains “EARN HIGH AND STABLE INTEREST FROM DEFI LENDING MARKETS” Jesus…
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You might enjoy this: https://youtu.be/J9nv0Ol-R5Q
Summary for other people who might not know what this is: Nicholas Weaver, Lecturer at UC Berkeley after 9 years of research in cryptocurrency, lectures on Cryptocurrency as part of CS161: Computer Security. He explains the history of the data structures, some implementation choices, then a bunch of obvious lies from Bitcoin hucksters debunked, security problems, more history/lies debunked, the fraud and bs, computat…
Technical knowledge gives you a menial job of auditing when it comes to Bitcoin. If you don’t have the economic sophistication and approach when discussing Bitcoin it only proves you are ignorant to what’s relevant.
The issue here is actually pretty easy to grok. Crypto is a new market, so there is a historical amount of information asymmetry between consumers and producers. This brings a lot of scammers to the space. A lot of crypto is definitely bullshit, but there are some use-cases that I admire that aren’t just gambling on Shit coins.
Crypto cannot create wealth, only move it around. If too many people become crypto-rich and try to spend it on real-world assets, the assets will just inflate in price. What can happen is that crypto could replace other forms of money. Governments will likely fight this tooth and nail however, because crypto is currently an anti-government technology.
Money is a creation of government, and frankly, the dollar ain’t so bad. If my bank goes under I’m protected by the FDIC. If Coinbase goes under they have the right to use my money to pay their creditors.
Crypto cannot create wealth, only move it around. If too many people become crypto-rich and try to spend it on real-world assets, the assets will just inflate in price. What can happen is that crypto could replace other forms of money. Governments will likely fight this tooth and nail however, because crypto is currently an anti-government technology.
>Crypto cannot create wealth, only move it around What's the difference? My employer doesn't create money, they just move it from clients to me. We're both still getting money out of it.
Crypto cannot create wealth, only move it around. If too many people become crypto-rich and try to spend it on real-world assets, the assets will just inflate in price. What can happen is that crypto could replace other forms of money. Governments will likely fight this tooth and nail however, because crypto is currently an anti-government technology.
> Crypto cannot create wealth, only move it around. If too many people become crypto-rich... Not really understanding this. If crypto is just moving wealth around, then how can "too many" people become crypto-rich?
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how is BTC not fundamentally sound. You can literally take 1 Billion dollars worth of BTC and cross the border without anyone questioning you. How does that not change how you see things ?
Fundamentally sound as what ? - As a currency, it's garbage. Currencies are inflationary to incentivize spending. A deflationary currency incentives hoarding, and harms the economy by dropping velocity. All the worst periods in history have been deflationary, not inflationary. Currencies benefit from being able to respond to changes in population, to shocks, to changing demographics. And they shouldn't cost a fully-r…
Really? Doesn't seem like getting off the gold standard was so miraculous in preventing recessions. Spending is great for consumerist societies, but people who are allowed to save are allowed to make far better economic votes on what is valuable past short term pleasure. Inflation doesn't encourage spending, it kills saving and makes storing wealth something only the sophisticated and wealthy can achieve.
> As a 'hedge against inflation,' it's garbage. In the most inflationary period in decades, it went from 69K to 28K. That's a drop of 60% in nominal terms. While the dollar dropped 9%. That means it dropped 69% in real dollar terms in a few months. RIP.
Pathetic cherry picking. How about I do the same thing and I start in 2013 and end anytime in the past 8 years? Price discovery is an obvious reason you as a laymen should be aware of. On chain security scaling with price is one you could be forgiven for being ignorant of. Price and security do not greatly separate and Bitcoin actually needs time for adoption for fundamental reasons (not just waiting for people to understand it).
> - As a 'store of value,' it's garbage. A store of value must be predictable. You should have a reasonable expectation that you can extract the same amount of value from it in the future. See above.
Redundant and addressed.
> It's an environmental catastrophe, wasting as much power as an entire nation (and yielding kilotons of e-waste per year) to achieve 6tps. Millions of times less efficient than Visa, or FedNow or RTP
Bitcoin is not comparable to Visa. Bitcoin is final settlement. Huge banks and financial institutions only do final settlement once a week for a reason - its slow and expensive. Bitcoin is actually faster cheaper and easier than a wire transfer and it uses far, far less energy to do so securely.
> Lightning
Lightning isn't the only layer-2, and it isn't killed by routing complexity, it simply requires more centralized routing hubs, users don't just connect to all their friends directly. This is fine for payments small enough to justify it.
Other layer 2 solutions are custodial and semi-custodial, which, just like financial systems now, settle large amounts of transactions at one time. Even a fully custodied Bitcoin bank (with insurance) fulfills the promise of secure and sound money. It also makes that bank highly auditable and accountable.
Fundamentally sound means what it says. It means the most basic function is the best in its class, and that once the market realizes it the world will build around it.
I think cryptocurrencies/nfts are crap and have no value, but to play devil’s advocate here; for all the people saying this is all doomed, the top cryptocurrency assets seem to more or less look like the tech market and BTC is doing better than, say Netflix. Netflix actually makes things and is 76% down from ath, while btc only 66%. So why is it so resilient? When will it die if it indeed has no value? Are we just gr…
Bitcoin is not technically interesting - it is economically genius. Undergrad cryptographers have learnt enough to re-implement the Bitcoin protocol, but understanding the genius of the composition of those simple primitives is a practice of game theory and economics. Historians of money who know not how to program have far more authority than a bitter techie when it comes to analyzing Bitcoin.
Crypto crashes every couple years and of course it has grown immensely since the last crash so the scale and scope of these kinds of “analyses” grow with it. I’d imagine in 5 years in the next big crash it will be the top news around the global for many weeks.
No, I think there is a natural limit - eventually you have enough people burned by the scams, crashes, hacks etc. who will keep away, to the point that you don't have enough new entrants to put enough money in to have continuing growth. Unless there was an actual crypto economy, but at this point, there's not much more than speculation.
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Money is a creation of government, and frankly, the dollar ain’t so bad. If my bank goes under I’m protected by the FDIC. If Coinbase goes under they have the right to use my money to pay their creditors.
Wow you actually think Coinbase is the apt comparison here? You really believe that the peak use case of Bitcoin is leaving it on Coinbase ? I think you should educate yourself.