[Test0129]

It's not an oversimplification if it is a common use case. Yes, the crypto purist will cringe at considering the entire system a ponzi but if you're that deep into crypto you probably can't see outside.

From the outside perspective, even among technically competent people, crypto has gone from a really cool "FOSS finance" type thing to basically exclusively being used to part morons from their money. That's not even to begin talking about the relative volatility in something that will allegedly replace cash.

While true that it is not crypto as a whole, by-and-large the nature of crypto has been reduced to a scam/crime currency. The community at large who loves crypto should really be doing more to stop every person with a modest twitter following from performing a successful rugpull since now the governments want to be involved.

[kmacdough]

There's a huge difference being "commonly used for" and "is a". The vast majority of emails and phone calls are spam. But it would be naive to call either of them - particularly email - fundamentally spam services.

Just because people leverage the hype & mostly unregulated nature of most crypto, doesn't make it innately a ponzi scheme. Yes it's a mess. Yes it needs better regulation. Yes, a large number of "use-cases" are better served by existing solutions.

But this is mostly because we're still very early in a slow-burning hype-cycle. There are some fundamentally unique services supplied by (some) currencies, like Ethereum smart contracts (e.g. de-centralized escrow), that enable fundamentally new and useful interactions. It is precisely these features which give (some) currencies innate value beyond speculation. I personally plan on waiting for the hype cycle to shake out a bit longer before I get too involved.

[mrbombastic]

It has been 14 years since the bitcoin white paper, how long will we be in the early stages of crypto?

On unique use cases, maybe but I am convinced the vast majority of crypto usage today falls in 2 camps

1) those speculating to make a quick buck

2) believers who want crypto to work

Both of these camps are working against mass adoption.

1) because for a speculative investment to be successful it must go up, and who wants to spend a currency they think will go up? Remember that guy who bought pizza with his bitcoin? What an idiot right, he traded currency for food?!?

2) the believers hold decentralization as above all else and see crypto as much a political tool as a product, they will sacrifice efficiency and convenience for this, the majority of people in the world won’t.

[TakeBlaster16]

I said the same thing in 1983: it's been 14 years since ARPANET, how long will we be in the early stages of the internet? It took 50 years of hard work before the day came when you could order a burrito from your couch. Sometimes change takes a generation or two. Be patient.

[mrbombastic]

I wasn’t around then but my impression is that at that point in time basically no one saw the internet coming maybe aside from a few geeks. Utility came piecemeal and eventually the private sector took notice that there was money to be made and something big was here. Today everyone and their mother want to tell me how crypto will revolutionize everything and I just need to wait for it to actually be usable for anything that I care about. It seems very backwards to me. Why is there so much evangelizing and so little product I can actually use?

[throw101010]

> It's not an oversimplification if it is a common use case.

If I listed scams successfully cashed out in USD over the last decade, roughly the time Bitcoin existed, and tell you that since this seems to be a very common use case for USD (most likely tens of billions worth world-wide in the last 10 years), all types of fiat money are basically scams now... Wouldn't you tell me I am oversimplifying the issue?

> While true that it is not crypto as a whole [...]

I assume this is you answering the above question, but I feel worth it to clarify, I use Bitcoin as a kind of measuring stick in this example because it is the largest cryptocurrency, it has over a decade track record of maintaining the principles it established without deviating from them and should be a representative project to consider when you pass generalized statements like "crypto = Ponzi".

> The community at large who loves crypto should really be doing more to stop every person with a modest twitter following from performing a successful rugpull since now the governments want to be involved.

Social media platforms can deal with this through moderation and reputation. They have to abide to both market laws (harboring too many scammers will lead to people fleeing away, so they have incentives to fight this) and legal codes.

Why should we limit the set of tools available to humanity to transfer value to stop a minority of scammers? We already "try" this with fiat and it just doesn't work, the current planned escalation to answer is more restriction (switching to CBDC with total control for Central Banks), more censorship.

Tools like Bitcoin want to provide an alternative to all of this, provide you with an option with wich even if you have more responsibilities/risks, you are in control. And the bonus is that all of these restrictions can become walled gardens on top of Bitcoin, for people who want/need the reversibility (use escrows, like they pretty much already do), but the basic right for you to transact with anyone else can't be removed by governments.