I'm rather mistrustful of people that are this forthy about being against a new technology. If it really is that devoid of merit it'll die on its own.
I also think it is a rather fundamental failure to see the big picture.
Not efficient? Well neither was the Ford model T. Newer generations are getting better.
Similarly somehow existing systems seem to get a free pass for things that are consider fatal flaws for crypto. Criminal enterprise? What do you think all the drug trade and sundry criminals use? Seashells? No USD. Systemic risk? Fed is printing trillions and history is littered with financial crises. Humans have managed to make everything from CDOs to tulips crash. Its not unique to crypto.
Personally I think crypto is a 50/50 chance of working long term. The people certain it'll be a disaster seem just as silly as those certain it'll take over the world.
Okay, so Mr Weaver can conjure some "ten trusted entities" by simply wishing them into existence.
Either he doesn't understand why one cannot simply create a "trusted entity" out of thin air .. which would mean, he's not actually an expert who anyone should listen to .. or he consciously makes a lazy attempt at formulating an argument that superficially sounds reasonable, while not having any substance.
Things are allowed inside crypto that is not allowed in the normal world of finance.
Ie stable coins: promising people 20% on their savings account by running an obscured ponzi.
Ie pump and dump.
Ie insider information. Insiders on exchanges buying up coins they know are going to be listed.
(And proof of work of course is the key enabler as it allows those who are running things to hide their identity.)
Complaining that crypto is stupid is fine, but lots of things in history were stupidly valued (tulips, beanie babies, bored apes) and eventually the market did or will change. Crypto is worth whatever people will pay for it. It's not inherently evil.
"The crypto world went into a full meltdown this week"
I don't know. Look at a chart of Bitcoins price on a log scale:
To me, it does not look any different then it has looked for the last 10 years. Its a slowing exponential growth with a certain volatility. Nothing seems to have changed in the last week.
Some are shitty, some are not.
Monero and Algorand are two good examples. The latter carbon negative.
This is supposed to be a rational reality-based community. There should be zero tolerance for the "just doesn't understand" trope, especially when someone doesn't even identify (let alone explain) what it is that their target doesn't understand. It's blithe dismissal, not curious conversation, and at least nominally (according to the guidelines) not what the site is supposed to be about.
> We’re talking [a measurable percentage] of the world’s electricity consumption, most of that has not been paid for. So the mining companies for the most part have been taking the cryptocurrency and borrowing against the cryptocurrency that they create, rather than sell it, because the market’s actually very thin.
So supposedly, the markets are too thin to support the miners actually selling their earnings to pay their power bills. Let's check the top two against 24-hour volume on coinmarketcap:
BTC volume: 1M BTC
BTC issuance: 6.25 BTC every 10 minutes, or 900 BTC in 24 hours, or 0.09% of the trading volume.
ETH volume: 8.5M ETH
ETH issuance: 2 ETH every 15 seconds, or 11,520 ETH in 24 hours, or 0.14% of the trading volume.
I don't think the miners have any trouble selling their earnings for fiat.
However as any "money" concept rooted on "money is the value" instead of "money is just an unit of measure of some substrate" are no more scam than actual currencies, should face the same fate anyway.
This is the point of having a hardware wallet. Someone has to push a physical button in the real world to sign a transaction.
>And [ransomware] only exists because people can pay in Bitcoin.
The concept of ransoms predates cryptocurrency and would still exist without it.
>And my gain is not just the difference between what I bought it for and what somebody else bought it for, but that plus the benefit of all the dividends and interest.
Stocks aren't guaranteed to just go up. If your stocks even pay dividends that might not even cover your losses.
>So the stock market and the bond market are a positive-sum game.
The stock market isn't positive sum. Someone is going to be holding the bag when a company goes out of business.
>but [Tether] does have the potential for bank runs causing collapse, because it’s unbacked.
This is false. See https://tether.to/en/transparency/
>Tether tokens, loans them to their big colleagues in the cryptocurrency space
See the above link. Their reserves aren't made up those kinds of loans.
>The cost of a transaction in cryptocurrency systemically is the amount being used to protect it.
This isn't true. If I charge $100 per transaction that doesn't mean that $100 of that goes towards protecting it.
>So let’s do programs that cannot be updated that handle mone
This isn't true. Smart contacts get updated all of the time.
>There’s no mechanism to fix problems if they occur. There’s no undo button. In fact, there’s often no way to upgrade at all.
This is just plain wrong. You can even make upgrades which are delayed that you can potentially cancel to prevent from being applied.
"Anonymous-ish cash, but on the internet" is a very attractive proposition. I'd also add to that "Locking up your money to get more money later" is as well. So much so that I'd strongly bet in favor of "people figure out how to make it more efficient, safer, and less destructive" against "It's just going to fail and go away."
It's from author's lecture.
Plenty of different arguments are offered by the commentariat, some of which have merit. But whether the stated reasons are environmental issues, political implications, scams, ransomware, or illicit trade, the one commonality seems anger and desire to ban and destroy all crypto.
A commenter recently stated candidly that they simply feel envy. They’re bitter about their bro-type friends and acquaintances getting rich overnight and flaunting their wealth. It clicked for me that HN commenters are more likely to personally know such people and feel resentful towards them.
That may sound like ad hominem, but I’m not addressing the arguments (many of which I agree with). I’m speculating about the reasons for the disproportionate level of ire directed against crypto on this forum, and personal resentment feels like a good candidate.
The reason I even care is that I’m hoping to read (even if not always necessarily participate in) higher quality discussions on this topic. The tech is here whether we like it or not. It might fail horribly (as many here seem to be hoping), but what definitely won’t help are the “I hope this Ponzi scam dies soon” one-liners on almost every article on the topic.
> Why All Of Silicon Valley Should Die in a Fire
Just an extension of the original... and just as dumb.
Also, I get the general sentiment on this site is CRYPTO BAD, mut can we please not jam the front page with links like this? What will be the next "why all x should die in a fire"?