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Why All Cryptocurrency Should Die in a Fire

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311–320 of 341 posts

Re: Why All Cryptocurrency Should Die in a Fire

#311
post #150

Earlier quoted context omitted.

This is a good use case for crypto, but it’s ruined by all the speculation and boom/bust. I don’t need $30,000k Bitcoin to support Wikileaks and my blogger. $10 Bitcoin works perfectly for this. But people hype and fraud coins to heights they shouldn’t be and make it useless for actual use. I think Eth is a good idea. I like smart contracts. But Etherium doesn’t need to be $3k and transactions shouldn’t be $10. $1 Et…

> I don’t need $30,000k Bitcoin > Etherium doesn’t need to be $3k The reason they're priced so high is because most of the supply has gone to early adopters (and its creators in case of the 70% premined Ethereum) leaving late adopters in fear of missing out and fighting over crumbs. > we can just pick dogecoin Dogecoin admittedly has higher inflation, but still had early miners getting 50x more reward than current on…

I understand why the price has gone up but it is completely counterproductive to have such a high and variable price.

Currently should be stable and predictable. There’s no need for early adopters to get rich. I just need to buy a pizza without cash.

Re: Why All Cryptocurrency Should Die in a Fire

#312
post #304

Earlier quoted context omitted.

> What's your point here? Climate change has been around for ages so it's OK to blow a load of electricity on something that's not particularly useful? So shall we stop inventing technology that draws power because it’s bad for the environment? I mean Bitcoin isn’t consuming electricity just for fun. People use Bitcoin and that’s why it consumes power. Like people using air conditioning, fridges, washing machines and…

> So shall we stop inventing technology that draws power because it’s bad for the environment? That wasn't my argument. My argument was that Bitcoin etc. are bad because of the power they consume when as far as I can tell almost all of what happens on these blockchains can be done far more efficiently and faster on existing technology, or in the case of transactions, existing banking infrastructure. > People use Bitc…

> We don't need Bitcoin. It hasn't enabled anything that couldn't be done already using the banking system, or with existing non-power abusive technology.

The advantage of Bitcoin may seem questionable if you believe dependency on central banking is fine and hedging against financial risks of traditional banks is silly. But mind you there are many people in the world without access to stable banking services.

> If we instead of running PoW blockchains, and used the far more efficient existing banking infrastructure, we could almost completely shut off all of Germany's gas from Russia (at least that portion used to generate

Come on, the number of Bitcoin miners in Germany might approach zero. Energy is way too expensive there. Miners operate in countries with access to cheap energy (which could be coal like in China but also renewables like in Norway). There may be validation modes in Germany but those draw much less power than a mining facility that append to the ledger. So Putin wouldn’t even notice if Central Europe would be shutting down the Bitcoin network.

And do you know what services had similar energy consumption in the past and nobody cared? Peer to peer file sharing like Bitorrent. Running seeding nodes 24/7 or your desktop computer for days just to download illegal copies of movies and software was not exactly environmentally friendly either. Can’t remember any outrage about that. While it’s valid to criticize Bitcoin‘s energy consumption it is not completely out of place and not without precedent.

> I'm pretty sure renewables are actually cheaper to produce than fossil fuels.

Yes, they‘re cheap to produce but very expensive to distribute. Germany e.g. heavily subsidized renewables in the past making electricity very expensive here (AFAIR even one of the most expensive in the world). The most economic renewable currently is hydroelectric power where you also can regulate power generation in response to demands.

But that wasn’t my point. I was just arguing Bitcoin is not a significant contributing factor to rising electricity costs.

> Worldwide power generation is a zero-sum game. There is limited power generation available each day. … It's a zero sum game.

No, that’s not how markets work and energy markets neither. If demand rises energy producers react by increasing production, if demand falls they lower production. If demand rises long-term, they invest in more production facilities. That, of course, takes time so prices will rise temporarily but still creating an incentive to invest. If Bitcoin miners manage to leverage renewables they might actually encourage a net production rise of renewable energy.

BTW: The Bitcoin network‘s power consumption is not fixed either, it depends on the network load and the number of miners competing with each other. At the peak of the bubble it may be much higher than on average. The next crypto winter is likely to come soon and then power consumption goes back to normal. Until the next crypto craze competing networks will hopefully have switched over to Proof-Of-Stake successfully.

Re: Why All Cryptocurrency Should Die in a Fire

#313

The world needs decentralised assets. It’s the internet of money. Some are shitty, some are not. Monero and Algorand are two good examples. The latter carbon negative.

> Monero and Algorand are two good examples I have to disagree with you here. Algorand requires relay nodes for consensus (and high throughput), and those relay nodes are permissioned and largely centralized. It’s not accurate to call Algorand a “decentralized blockchain” or assets on it “decentralized assets”. This is a big issue in the blockchain world - the details of the implementation matter so little to the par…

Anyone can run a relay. Though most are currently with the foundation. The architecture isn’t flawed.

Re: Why All Cryptocurrency Should Die in a Fire

#314

The world needs decentralised assets. It’s the internet of money. Some are shitty, some are not. Monero and Algorand are two good examples. The latter carbon negative.

The Internet is by no means decentralized, and the most compelling argument for the inefficiencies of crypto, in my opinion, is that everything we've built on the Internet tends to centralization. "No one wants to run their own mail server". So eventually, we'll have spent all this energy and time in designing convoluted protocols that solve the exact same problem we had already solved, only less efficiently and with…

Yes but people CAN run their own mail server and some do. That’s the point.

Re: Why All Cryptocurrency Should Die in a Fire

#315
post #308

Earlier quoted context omitted.

I think if anyone from the pro-economic freedom side of things structured an argument the way you have they would be flagged into oblivion here. >How is that due to regulations? There simply isn't much demand for those types of transactions. Perhaps there isn't demand because they have been regulated out of the realm of the possible with traditional instruments? There is demand, but you are not aware. Tips on Twitter…

To counter my argument that cryptocurrecies hasn't managed to do anything better in online payments and has been outgrown...you provide a list of things that are being done without crypto. I would love to see someone make a killer app for cryptocurrencies that isn't just breaking laws almost as much as I would love to see the credit card cartel get properly distrupted, but at this point cryptocurrency has had it's ha…

Don’t know if you noticed but the biggest currency used for crime is USD. Shall we ban it?

Re: Why All Cryptocurrency Should Die in a Fire

#316
post #220

Earlier quoted context omitted.

The model T is also a bizarre example because the negative externalities of the private automobile are so extreme that you are materially worse off now owning a car in a city designed around cars than not owning one in a city designed to minimize their use.

Yeah. I left this out for the simplicity of the argument, but something we really didn't have a good idea of at the time (especially because it largely hadn't happened yet, and we might not have been able to measure if it had) was that climate change exists, and cars are a huge part of it. We know that now, but are stuck in a world with cars, we're trying to dig ourselves out of that hole. We know that crypto[1] uses…

Notable is that PoW is a way of polluting outrageously whilst transferring wealth to the wealthy, PoS just transfers it more directly without the indirection via physical capital. Neither of them solve any of the issues they propose to solve.

Re: Why All Cryptocurrency Should Die in a Fire

#317
post #174

Earlier quoted context omitted.

They're not trustless which makes them closer to a privately run fiat currency than a crypto currency.

What is "not trustless" about algorithmic stable coins?

It needs an oracle at least to announce the value or the collateral in USD.

Re: Why All Cryptocurrency Should Die in a Fire

#318
post #99
post #49

Earlier quoted context omitted.

I understand this privacy argument - but I'm wondering what the practical downside is of this "spying"? I've been using credit cards online for decades and I am yet to encounter anything negative from doing so. I get that my credit card provider knows that I'm buying £X of goods from merchant Y. But unless that merchant is very specific, the card company doesn't know what I've bought. And, if it did... so what? Perha…

I started in Monero after the Canadian trucker thing. The government response was scary. In no particular order, threats that got me interested in privacy coins: 1) Able to donate money without it being blocked (examples: Wikileaks, eight-wing political activism). 2) No trace of activity that can be used against me (examples: WWII, looks like it might happen again in the near future, situation is tense post-COVID). 3…

> want to have protections against government haircuts

I feel like you may have been auto-incorrected there, but I can't work out what you may have been trying to type that got changed to "haircuts".

Re: Why All Cryptocurrency Should Die in a Fire

#319
post #202
post #159

Earlier quoted context omitted.

> Private or not, which country are you in that would penalise you if you donated to Wikileaks? Didnt US companies stop payments to Wikileaks because they exposed the US govt, atleast with crypto Wikileaks and others can bypass US payments systems.

Wasn't this because the US government blacklisted it? Being a tool for evading laws that we don't find convenient doesn't seem like a great reason for existing.

Which law did Wikileaks break?

Re: Why All Cryptocurrency Should Die in a Fire

#320
post #161

Earlier quoted context omitted.

> every bitcoin transaction uses about as much electricity as it costs to run my house for nearly six months. Why does that even matter, a rich guy travelling in a private jet uses more energy compared to you travelling in commercial jet, does that mean we should ban private jets?

If we find that private jet use negatively impacts the price of or access to commercial airfare for the 99.9% (e.g. if we discover that commercial airports are congested by private corporate traffic, or that private airplanes are getting unfairly preferential access to scarce parts such that commercial airlines can't repair their planes), then yes: we should consider regulating and in some cases preventing private je…

Your metaphor is equally bad.

By that logic business class should be banned because business class customers get preferential access compared to economy customers and they use more energy.

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