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Cryptocurrency’s transparency is a mirage: New research shows a small group of insiders influence its value (theconversation.com)

submitted 2 days ago by [email protected] to c/[email protected]

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TLDR: meme coin rug pulls, among other issues around centralization

Crypto-believers often blame greedy financiers as the cause of the Great Recession in 2008. But we argue that crypto is not immune to these same risks.

Public blockchains operate on a distributed peer-to-peer network. This network provides each user a complete record of transactions that is updated in real time. Users can send digital cash between themselves without relying on a centralized authority.

Since each user has a full record of transactions, the system promises full transparency. But our research demonstrates that public blockchains, and the cryptocurrencies that run on them, do not actually replace trust with transparency.

Speculation, manipulation and market crashes remain very real dangers, regardless of whether the financial system is centralized or decentralized.

Centralization of power in the hands of insiders is still a major issue in the cryptocurrency space. This is particularly an issue for emerging cryptocurrencies like memecoins. Memecoins are a type of cryptocurrency named after internet memes or similar jokes. They draw their value entirely from speculation.

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[–] [email protected] 14 points 2 days ago (2 children)

Agreed. Crypto is a waste of time and energy.

Fuck every crypto.

[–] [email protected] 13 points 2 days ago (1 children)

We will switch to back rubs as a system of currency.

[–] [email protected] 2 points 2 days ago

that sounds fucking awesome...

[–] [email protected] 8 points 2 days ago

I used to think it had some potential use case many years ago. But now I totally agree with your statement.

Its just a big scam and a waste of time and energy.