1282
Be kind to your elders (lemmy.world)
submitted 2 years ago by to c/whitepeopletwitter@sh.itjust.works
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[–] 4 points 2 years ago (6 children)

"it's somehow worth money" is basically true of all fiat currencies. It's worth what the consensus agrees it is worth.

(this comment should not be read as a defense of crypto)

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  • [–] 15 points 2 years ago*

    Government currencies are backed by taxes - someone did something and gave a portion of the value of their labor to the government, represented by currency. The government then reinvests the labor into the country supposedly for the public good. This is expected to continue indefinitely and it is this cycle that gives the currency value.

    Crypto companies have investors. Investors are only attracted by the prospect of growth. They have no natural revenue cycle, no way of creating value without hype and people gambling with their.money.

    The exception is the value inherent in being a currency outside of the control and surveillance of the Governments. Hence all the illegal activities. As time goes on cryptocurrencies will be more regulated and controlled by government, and it will diminish that trait.

    It's fucking stupid.

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  • [–] 7 points 2 years ago (2 children)

    Traditional currencies are backed by governments and the global economy. Boiling down USD/EUR to "it's worth money because we say so" is many many magnitudes larger of a splicification than saying the same for crypto.

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  • [–] 4 points 2 years ago (1 child)

    I think it helps to reinforce how silly crypto is, though. Once you establish that fiat currency is basically magic paper we all agree is worth something because it's backed by things like the government's reliability and contract to uphold that value, and then you say, "and crypto, designed to replace fiat currency, is backed by fiat currency," the whole thing falls apart like the house of cards that it is.

    How can you justify a funny money that doesn't do anything new in terms of cyber security, while burning vastly more resources to do it, and is only worth something because of the currency that it's supposed to replace, and that value rapidly fluctuates from moment to moment.

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  • [–] 0 points 1 year ago

    How can you justify a funny money that doesn’t do anything new in terms of cyber security, while burning vastly more resources to do it, and is only worth something because of the currency that it’s supposed to replace, and that value rapidly fluctuates from moment to moment.[?]

    Well its got lower inflation than gold, that's something.

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