I still don’t understand crypto currency...

Lyft
8008

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8008
Jun 16, 2018 12 Comments

IMHO, fiat money is endorsed by the creditworthiness of governments, eventually the military force, which I think is basically “absolute power”. Who endorses crypto? Consensus of people? But that can be changed without too much difficulty right? This is just my speculation, tbh, I don’t understand the technology of block chain that much though.

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  • Microsoft / Eng
    bitterbyte

    Go to company page Microsoft Eng

     bitterbyte
    The idea is that people themselves endorse the currency as opposed to their government. We don’t need to ask the government to manage a system of value, when we can cryptographically verify every transaction ever (of a particular currency) or some acceptable subset of them. The meaning of value has seemed to change over the years. When it was once about how much stake you have your country’s fortune (resources like gold, oil, food, etc), value has manifested from data, users, and other resources that are in some case of liquid in terms of exchange ability. How many users does one have. At the end of the day, crypto currencies must be transformed into something else. Whether that be a physical government run currency or loaves of bread, or drugs, it’s a more universally liquid asset, and thus has more potential than a single currency.

    That said, I don’t play into it much, so I can’t speak for how everyone is using it for this and that. I just find the philosophy of it interesting.

    Additionally, block chain, while crypto is mortally dependent on it, is just the mechanism by which transactions are verified. It’s being applied to other domains as well, including verifying logistics in shipping.
    Jun 16, 2018 0
  • Who endorses gold or silver?
    Jun 16, 2018 3
    • New
      DuQvV7

      New

      DuQvV7
      OP, you’re absolutely right but you’re arguing against entrenched interests.

      The number of cryptos shows the limited barrier to entry and the unreliability of the whole scheme.
      Jun 16, 2018
    • @8008 Gold has industrial applications only for the past 100 years or so, while it has served as a currency/store of value for thousands of years. This goes to show that industrial applications of gold is not what gives it its value.
      Jun 16, 2018
  • Research Now / Eng
    Arschloch

    Research Now Eng

     Arschloch
    Who endorses copper, iron, aluminum, or any other commodity? Supply and demand.
    Jun 16, 2018 3
    • Research Now / Eng
      Arschloch

      Research Now Eng

       Arschloch
      What is the use of art? I heard a painting sold for 100 million dollars. Use of something is secondary primary is its “perceived” value. People buy big diamonds just to keep in vault they don’t do anything with it.
      Jun 17, 2018
    • There's some decorative value, and a lot of dumb speculation built in
      Jun 17, 2018
  • Reddit
    DzrI52

    Go to company page Reddit

    DzrI52
    Crypto is a terrible asset class these days. Need something big to turn it around
    Jun 16, 2018 1
    • The best time to invest is before a turnaround. It’s a decent time to invest now. Not as good as the beginning of 2017, but not as bad as the end of 2017.
      Jun 16, 2018
  • Crypto currency is super simple. HODL and get free money (fiat of course)!
    Jun 16, 2018 0