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"The root problem with conventional currency is all the trust that’s required to make it work." Trust is required to make cryptos work too. Yes, a blockchain is "immutable", as long as the network isn't hacked w/ e.g., a 51% attack in Bitcoin's case. However, the price of Bitcoin isn't really anchored to anything, i.e., there's no natural demand for it like there is for fiat currencies (since people must pay their taxes in fiat), so basically, only the collective trust and hope of people is making it valuable. In addition to that, current cryptos are lacking in either decentralization, efficiency, or both, nevermind the various decentralized applications that operate like any traditional company, which you'll have to trust in order to use the app. So as of now, a truly decentralized and efficient blockchain network is only a dream. I'm not saying fiat currencies are without problems though -- they very much aren't. The regulation is problematic, but the bigger underlying issue stems from the expectation of infinite growth. Money in the modern economy is basically debt, whose interests are paid off with newly created debt. This cycle works only if the loan money is, on average, invested profitably, i.e., (in very rough terms) the GDP rises along with the money supply. This is difficult to begin with, but since compounding interests grow exponentially, it means that the GDP should rise exponentially too, which, since exponentially growing curves approach infinity relatively fast, means that the planet is fucked due to exponentially growing demand of energy and natural resources. |