[cletus]

Personally I see the three biggest factors as:

1. Rampant speculation. Note that a relatively few "investors" hold a fairly large percentage of BTC in particular.

2. Capital controls and wealth protection in certain countries (most notably China and Russia); and

3. Illegal activity (including money laundering).

If I had to guess, probably in that order (from high to low). The seedy side of this (3) is obvious and (to my detriment) is why I steered clear.

Cryptos may have been envisioned as an alternative currency but it's clear they're behaving far more like an asset class and that they have some bad properties for a currency to have, most notably the deflationary aspect and the inability to manage the money supply (which some will view as a positive).

It's really anyone's guess what happens from here. Thing is though, even though an individual coin is limited in supply my personal belief is that this will even out when people realize that different coins are essentially commodities so new ICOs are what will meet demand. I'm not sure when we'll get there however.

[jbob2000]

The seedy side of crypto is 100% the reason I am staying away. One of it's biggest benefits (lack of institutional control) is also it's biggest detraction; anyone who is trying to avoid law enforcement is using it. When you purchase bitcoins, there's probably a good chance you are funding: hackers who are holding systems hostage; child pornography/prostitution rings; illegal arms and drug dealers; scammers; etc. etc.

The banking system, for all its issues, makes collecting and moving large amounts money around very difficult. We are going to quickly find out that that is a Good Thing.

I really think the debate about crypto has been poisoned with malicious intent. We all sit behind our computers thinking the people on the other end are just like us, with wonderful ideas for a technological revolution, but we have no clue what the real motives are behind its push.

[rdm_blackhole]

This argument is not valid.

What about the drug dealers selling their stuff for cash?

I can do the same argument about fiat money. What about the tax dodgers crossing borders with suitcases full of cash that will end up in some offshore bank never to be seen again? The fact that some people use bitcoin to launder money is no different than a government paying a ransom to free a hostage in a hostile country.

`The banking system, for all its issues, makes collecting and moving large amounts money around very difficult`

That is why cryptocurrencies exist in the first place!

If I have money, that I have already paid taxes on, shouldn't I be free to do whatever I want with it without having to answer to a bank or a government like I am some kind of child that needs to be chaperoned? Why can't I use what is mine without restrictions?

Banks don't mind doing their dirty business deals behind closed doors and will deter anyone to look into their questionable business practices but for some reason, me, the average Joe who doesn't have lawyers on retainer to keep everybody at bay, I should be required to leave my money in a bank and hope that the banks are not going to lose it all like they did in 2008?

That doesn't make sense to me.

[jbob2000]

> I can do the same argument about fiat money. What about the tax dodgers crossing borders with suitcases full of cash that will end up in some offshore bank never to be seen again?

It's a felony to do that with more than $10,000 and if you wanted to move any serious amount of money (millions) you'd need a small truck. You risk getting robbed moving that kind of cash.

>>`The banking system, for all its issues, makes collecting and moving large amounts money around very difficult` >That is why cryptocurrencies exist in the first place!

You're missing my point; It's a good thing that moving large amounts of money is difficult. I can't see any legitimate reason why someone would want to move tons of money around, just write a cheque or do a bank transfer of some sort.

If bitcoin becomes the new currency, you aren't any more free than you were under the banks, you're just beholden to a different master - the people who maintain the cryptocurrency networks.

[Rmilb]

>you aren't any more free than you were under the banks, you're just beholden to a different master - the people who maintain the cryptocurrency networks.

Exactly. Bitcoin just like fiat is backed by trust in those who run the network. Bitcoin doesn't solve many problems as a store of value right now if you trust the government not to print trillions like they did after the 2009 crisis.

If you don't trust the developers, don't trust the coin.