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I wasted years of my life in crypto

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Re: I wasted years of my life in crypto

#731
post #671

Earlier quoted context omitted.

What's the incentive for keeping these "robust" databases online, if not for making a lot of money by running scams?

No one is going to run a database for you unless you pay them. If you want to write data to an existing public ledger, then you are going to have to get some of the token that allows you to write to that ledger. Paying for a token to use the ledger is not speculative, it's pragmatic. Holding the token and not using it to write to the ledger is speculative, and encouraging people to do that in order to make money your…

Or the university could pay 3$ per year to host a DB that all clubs can use.

I’m sure you can imagine a make believe world where no one has money and everyone cares and is tech savvy and yet no one can be trusted at the same time, and in this world somehow blockchains are useful.

But that’s not the world we live in.

Re: I wasted years of my life in crypto

#732

It's good to know everyone here is weary of crypto scams, but I don't see anyone accurately describing the significance of these technologies. Bitcoin failed as a currency, and as that became realized, institutional investors pivoted to the "digital gold" scam, to keep people long, while they divest or hedge. The two reasons why it failed as a currency are transaction latency, and lack of fungibility. Transaction pri…

> If you've been soured on these technologies because most of the currencies built with them are scams, I would encourage you to learn about them as if they were just incredibly robust databases that even governments would struggle to take down. Surely you can think of something cool to build with that, which doesn't involve money. The problems with the technologies is that the "robust database" guarantee is often hi…

> The problems with the technologies is that the "robust database" guarantee is often highly dependent on the currency mechanisms. They unfortunately go hand-in-hand.

I agree that economic incentives are important for robustness, but I don't agree with this use of the word "currency". The tokens have value in that they can be used to write to the ledger. That is the consumer aspect of the token, you can give it up in exchange for the ability to edit the ledger. The producer aspect of the token is that if you help participate in running the network, you can earn tokens, to edit the ledger yourself later. The tokens have to store value (ledger write access), and there needs to be a market for them, because the producers can't use them all themselves.

Just because something can store value, in this case the specific ability to write to the ledger, doesn't mean that thing is suitable as a currency. Copper ingots let you make cat6 cables, the are objectively valuable, but we don't use them as a currency. And as the world found out over the last decade, the distance from store of value to functioning currency is significant.

The store of value is sufficient to run the networks though, you don't need the tokens to work as a currency, and I think that has been empirically proven. The Ethereum mainnet is unlikely to disappear for a very long time, but Ethereum is also unlikely to ever be widely used as a currency.

The takeaway is that you should have as much of these tokens as you are likely to need for writing to the ledger. If you hold them in Coinbase and never use them to operate the ledger then you are participating in the speculative overvaluing of the tokens.

Re: I wasted years of my life in crypto

#733
post #708

Earlier quoted context omitted.

You had a positive outcome, but yes, despite that, I don't know if that was based on a sound decision. It's possible to vastly misjudge the expected value of a trade and still come out ahead. > This was the only singular "crazy gamble" I had ever made and I knew full well it was crazy. The only thing that matters is whether it's positive EV (and whether your methodology of coming up with the EV itself is sound). If y…

I mean I thought that there was a potential in blockchain tech back when I bought it. I also thought that there was also potential in the hype around blockchain to explode the value simply from hype and how humans behave alone. At least WAY more of a chance than what I would get spending $1000 on a lottery ticket or at a casino.

Then maybe it was sound! To know for sure, you'd have to repeat the experiment a few dozen times, though ;)

Re: I wasted years of my life in crypto

#734

I've never understood the initial arguments about Bitcoin, no matter how many times they've been explained to me. The block chain is, and always was, an extremely inconvenient database. How anyone, especially many intelligent people, thought it was realistic to graft a currency on top of such a unwieldy piece of technology is beyond me. Maybe it goes to show how few people understand economics and anthropology and ho…

Most of my transactions go through credit card, that means every time I exchange money for services/goods a private corporation takes a 3% cut. That makes sense to you but the dream of BTC doesn't?

Of course it turned into a gambling scam filled cesspool like most human endeavours, but the initial dream was sound.

Re: I wasted years of my life in crypto

#735

Earlier quoted context omitted.

Simply put: Bitcoin was to be an alternative to FIAT, but it ended up being nothing more then a meme-stock that consumes more energy than Poland or Argentina. Its sad really. But the greed in people turned it into shit.

I never understood why bitcoin is winning popularity/pricing over ie. ethereum - which doesn't burn energy anymore and you can actually do programming on it, not just moving money from a to b.

Bitcoin has a longer proof-of-work history, which is the only thing that secures any blockchain.

Re: I wasted years of my life in crypto

#736

I worked at a crypto exchange and after I came to the conclusion that 99% of crypto was scams and rugpulls, I sold all my crypto and vowed to have nothing to do with it. It's more of a religion than a financial instrument and absolutely nothing has shown to me that crypto is anything more than a speculative gamble, basically tulips with the religious promise of a better world. The number of employees that lost money…

My advice is always: Just hodl some bitcoin, but not in amounts that make you cry when you loose it. It's been better for me so far than normal savings accounts.

Hard to argue with that reasoning, on several layers.

Re: I wasted years of my life in crypto

#737

Earlier quoted context omitted.

It has an extremely volatile profile. You might as well stick your money in the SP 500 and call it is a currency.

Except the S&P 500 will give you a return. The stock market is not gambling, much as some people want it to be.

It does go down by double-digit percentages from time to time though, which is really inconvenient if you want to, say, buy a house today or tomorrow.

There's a reason people still use USD, EUR etc. and not fractional ETFs to pay and get paid.

Re: I wasted years of my life in crypto

#738

I worked at a crypto exchange and after I came to the conclusion that 99% of crypto was scams and rugpulls, I sold all my crypto and vowed to have nothing to do with it. It's more of a religion than a financial instrument and absolutely nothing has shown to me that crypto is anything more than a speculative gamble, basically tulips with the religious promise of a better world. The number of employees that lost money…

I've never understood crypto, however I'm long term Bitcoin fan and user, and don't consider it "crypto". I think Bitcoin is pretty much opposite what the typical crypto project is.

[deleted]

Re: I wasted years of my life in crypto

#739

It's good to know everyone here is weary of crypto scams, but I don't see anyone accurately describing the significance of these technologies. Bitcoin failed as a currency, and as that became realized, institutional investors pivoted to the "digital gold" scam, to keep people long, while they divest or hedge. The two reasons why it failed as a currency are transaction latency, and lack of fungibility. Transaction pri…

> I would encourage you to learn about them as if they were just incredibly robust databases that even governments would struggle to take down. Surely you can think of something cool to build with that, which doesn't involve money.

Why is it so popular for someone in tech to assign everyone else the task of thinking up something useful to do with technology x they think is cool?

> It's not an overstatement to say that distributed ledgers are as big of an advancement for human coordination as democracy was.

Ok, if that's really your thinking then you need to lay out: here's an impossible-to-ignore thing we can do with this, and this is how, and this is why this wouldn't be possible without this thing.

Re: I wasted years of my life in crypto

#740
I worked for a blockchain startup and left with PTSD (I was asked to leave).

They had started as yet another ICO and when that didn't work, pivoted into a financial space that actually was a great pitch for blockchain.

They were a small company and when I came aboard they had nothing viable, I helped them rearchitect it to something that could work, and the lead ops guy translated it back to the original broken architecture.

That guy was crazy, and claimed that everybody there was spook adjacent (ex NSA, etc) and that our tech was vital to some secret need. They all drank the koolaid.

I do like the concept of blockchain as a "commons" of data, but stil think that cryptocurrency is a colossal scam.

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