[this_user]

In 2008 monetary and fiscal policy was not constrained by high inflation. Not it is. Anything that depends on inflows of cheap new capital will suffer. That concerns unprofitable companies as well as assets that generate no cash flows like anything crypto.

[deeptote]

Crypto is a fucking scam and I will die on this hill.

[iancmceachern]

I'll be there with you. It doesn't add value to the world. If you go mine some gold, silver, coal, he'll, even dirt. It all has an intrinsic value for what it can be used for. Even dirt can be used to grow crops or fill in the sea.

Crypto is worthless because it doesn't DO anything.

[iancmceachern]

Those down voting please list here what practical uses crypto currently has for the average human

[dash2]

Bitcoin provides a “fiat” currency which doesn’t depend on any single actor controlling the supply. That could prevent inflation while being easier to exchange than gold.

[iancmceachern]

Thank you, I appreciate it.

I understand the vision, but argue it hasn't lived up to it.

Anyone can walk into dozens of places in my city to buy, sell, exchange gold. There are many reputable online services for this as well. In reality it's really very easy to exchange. It's also way easier to deal with gold coins, etc Tham the whole crypto exchange/wallet/physical backup thing. People always mention theft, anyone who has any amount of gold should have it insured as part of their home/renter insurance, or can store it professionally with the same insurance guarantees. There isn't really a problem that needs solving here.

It's hard to think about it protecting from inflation while it's so volatile. 5-10% inflation seems small when the market fluctuates +/- 25% regularly.

I think crypto will end up going down in history as one of those Enron, Theranos, Segway, DIA automated baggage system, Lularoe things in 10 years. If it were this amazing world changing idea we'd all already be using it. Think about Facebook, Google, Netflix, these all became daily parts of most of our lives within a year or two. We've had crypto for a while now and I argue that the average person doesn't use it much, interact with it much, other than an investment vehicle.

I think the crypto industry needs to take a hard look on the value prop they originally made, if they're meeting it, and what value, if any, they're providing instead. Does crypto work without continued investment? Does it add value and hold water on its own or does it rely on a steady stream of new investors putting more money in? Does it create value?

[dash2]

You might well be right - I'm not a Bitcoin investor or advocate. OTOH, while using gold for physical exchange in small amounts is workable, that breaks down when you get to large amounts. A million dollars of gold is about 20 kg. One hundred million dollars requires an armoured truck to transport. That's not a good way to do business. And indeed, we rarely see gold used for exchange. We rarely see bitcoin used either, but it happens - for example, criminals use it for ransom payment.

I'm not sure that FB or Google happened as quickly as you think, but in any case, there are less obvious issues with coordination. One person can start using Google. For BTC to be useful, many people have to start using it, and it might not be surprising that that takes a while, or starts among investors rather than ordinary Joes. It might not even be surprising that it starts with a huge amount of speculation - that doesn't prove the price won't settle down eventually.

[gorgoiler]

Yes and the wood from this new species of tree can be used to build time travelling quadcopters and yet all I see is a throng of people buying and selling planks for more and more money without there being a single chronocopter.

[version_five]

Yes, it's a scam. I don't see a downturn making people more wise about this though. Crypto shills have a plausible reason for a decline in value, and otherwise it's not like anything is happening to get the scammed (often just the greedy) to increase their sophistication so they can understand it's a scam.

This is one of the rare times I'd say it, but I think legislation is needed. Crypto is a so-far-legal outlet for various financial schemes (ponzi, pump-and-dump, securities fraud, etc) that all are covered under existing laws. We just need to extend the law to these new instruments so people can't legally con others just by saying "blockchain"