A Conversation With a Random Dude on the Internet
The Random Dude:
I don't get it. You don't need cryptocurrencies to have block chain implemented
Iron gold silver etc are commodities you can do something with it.
Crypto you cannot do nothing with it.
Seems like any institution or private person can issue their own cryptocurrency.
Stable coins? Not really. Don't you see the volatility everyday?
From what I understand, fiat currencies are dependent on countries economy Product per capita PIB(?)
Crypto on other hand just dependent on speculation, thus the volatility.
The only advantage I see is that you don't need to print it lol
But then it wouldn't be useful for grandma and grandpa living in the country side. Or at least it would take one or two decades for people to adapt to a card or mobile chip don't you think?
Me:
I respectfully disagree with everything you just said.
I don't get it. You don't need cryptocurrencies to have block chain implemented.
It is possible to have a private blockchain for an intranet that only certain employees from a company or organization can use. But if you want a blockchain open to the general public a cryptocurrency becomes necessary to prevent the blockchain network from getting spammed. If it costs nothing to run a blockchain transaction hackers will spam these networks and completely shut them down.
Iron gold silver etc are commodities you can do something with it.
Crypto you cannot do nothing with it.
I have used crypto to buy maple syrup, run video game products, store video game items on a blockchain, and send remittances to a friend who was in need. I have not even scratched the surface about what blockchain and cryptocurrency has empowered me to do.
Seems like any institution or private person can issue their own cryptocurrency.
It's true any person or institution can issue their own crypto and I believe it to be a beautiful thing. Just because someone can issue a cryptocurrency does not mean that it will have solid tech or a community that supports the token. Making a coin that is useful and loved by a variety of users is what actually makes a crypto valuable.
Stable coins? Not really. Don't you see the volatility everyday?
I am aware that cryptos like Bitcoin are volatile. However, you don’t seem to realize there are a variety of cryptos and that there are stable coins. Look up USDT, USDC, Binance USD and TrueUSD. All of these tokens are backed up by an institution and used like actual US Dollars. So these tokens are as stable as USD.
From what I understand, fiat currencies are dependent on countries economy Product per capita PIB(?)
The main thing that gives fiat currency value is that if you don’t pay your taxes with it men with guns will come to your house and throw you in jail. Product per capital is not what sets the price of any currency (that’s what Forex markets are for) but a strong country can usually afford to print more currency without experiencing hyperinflation.
Crypto on other hand just dependent on speculation, thus the volatility.
ALL currencies are dependent on a certain amount of speculation. Without Forex markets international commerce would grind to a halt. Even the US Dollar changes value against other currencies every single day. The more people who use cryptos like Bitcoin the less volatility there will be.
The only advantage I see is that you don't need to print it lol
There are many different advantages to cryptocurrency over traditional fiat currency.
- It’s open. Anyone can build on top of cryptos like Bitcoin and Ethereum. This allows creativity to develop interesting apps that can’t exist with the traditional banking system.
- Decentralized. There is no single point of failure for a crypto like Bitcoin. Unlike your bank that has probably been hacked many different times.
- Trustless. I don’t need to trust an institution (like a bank) to send Bitcoin instead I trust the code.
- Permissionless. Anyone can use Bitcoin. Stateless people can use Bitcoin. People from third world countries who don’t have a national identity can use Bitcoin.
- Supply. Many cryptos like Bitcoin have strict rules put in place in regards to the supply. I can figure out any moment in time how many Bitcoin are in circulation and how many there will be in circulation. Other cryptos may not be capped but still have predictable inflation. That can not be said for most fiat currencies that will hide how much they are really printing.
- Not-forgeable. A strong blockchain like Bitcoin is impossible to forge unlike traditional cash.
But then it wouldn't be useful for grandma and grandpa living in the country side. Or at least it would take one or two decades for people to adapt to a card or mobile chip don't you think?
90% of the population has a cell phone. The main thing holding grandma back from using crypto is a user friendly interface. Crypto wallets are getting better and better and it’s just a matter of time before one that’s as easy or easier than Paypal and Venmo is launched and successfully marketed.
