I think the fundamental and radical idea of cryptocurrency is that this is not true. Currency can have value even if it isn't derived from the point of a sword.
I know crypto has a lot of scam baggage and that is unavoidable for a permissionless system, I think. Regardless, the idea that you can wrest away the levers and dials of monetary policy away from world powers and put it in the hands of a permissionless system is a powerful and potentially system-altering one. I have been a fan of cryptocurrency for this reason since well before people were writing news articles about them.
I think the phenomenal success of crypto to this point is a strong indicator that you might be wrong, or at least not totally right
> I think the fundamental and radical idea of cryptocurrency is that this is not true.
Not to sound nitpicky but an idea cant dis-/proof anything.
Trust is the only foundation of cryptocurrencies, and your argument is a good example of biased reasoning to coat it with such (i guess you still hodl). The volatility of cryptocurrencies will be their downfall aka. loss of trust in the long term because people already have the expectation of rising value, whereas a stable currency would require a roughly 1:1 exchange, which would make it hot garbage for pretty much all the hypsters. They value hodling and not circulation, which is the primary use case of a currency.
My argument is a systemic one. I am not pointing to graphs or big players.
There is quite a lot of crypto that holds a very consistent value in a trustless, permission-less way and that people (including myself) use as a stable store of value. I suppose you might not be aware of them but it doesn't mean they don't exist. I'm not sure that volatility in layer 1 is a bad thing. You don't buy, for example, Ethereum expecting that it will be worth that same number of us dollars today that it is tomorrow. You buy it to use as computing resource on the ethereum network. If you want something that is stable against the US dollar (which itself pretty wildly volotile lately, thanks to the many Cheeto fingerprints of central bank currency manipulation) you might onstead buy DAI which you can be confident will be worth the number of US dollars you paid for it tomorrow. The ecosystem is maturing and there are valid, elegantly engineered solutions in the crypto space. Don't let the scams and speculation make you ignorant to the real work talented people are doing.
> I know crypto has a lot of scam baggage and that is unavoidable for a permissionless system, I think.
Being resistant to scams is one of the key features of modern finance. The joke that cryptocurrencies continue to rediscover the history of finance is not just a joke, it is the reality.
So many of the things that the crypto world complains about with fiat currency are actually things that allow the whole system to function well, and came about to combat scams and frauds that people don't want.
I know crypto has a lot of scam baggage and that is unavoidable for a permissionless system, I think. Regardless, the idea that you can wrest away the levers and dials of monetary policy away from world powers and put it in the hands of a permissionless system is a powerful and potentially system-altering one. I have been a fan of cryptocurrency for this reason since well before people were writing news articles about them.
I think the phenomenal success of crypto to this point is a strong indicator that you might be wrong, or at least not totally right
reply