[HN Gopher] With the death of cash, privacy faces a deeply uncer...
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       With the death of cash, privacy faces a deeply uncertain future
        
       Author : smooke
       Score  : 51 points
       Date   : 2021-01-18 17:34 UTC (5 hours ago)
        
 (HTM) web link (hackernoon.com)
 (TXT) w3m dump (hackernoon.com)
        
       | camjohnson26 wrote:
       | Has anyone found a use for cash outside financing criminal
       | operations? Transactions are slower than sending money
       | electronically, the paper is subject to decay, and if your cash
       | gets stolen you have no recourse to getting it back. The fact
       | that a hundred dollar bill is worth a hundred real dollars is
       | insanity and proof that its value is a speculative bubble that's
       | being driven by anarchist fanatics and criminals.
        
         | proc0 wrote:
         | You've never traveled around and used cash because you are at a
         | small shop of some kind with no ATM around? I guess you welcome
         | the Great Reset then. I would rather keep the option, no matter
         | how obsolete. Even crypto can have an equivalent, it's just
         | more options, more flexible. Why would you want a more rigid
         | system with less options? (unless you want absolute control)
        
         | CapitalistCartr wrote:
         | Apparently the /s is actually required here.
        
           | camjohnson26 wrote:
           | It's pretty sad.
        
         | grahamburger wrote:
         | Legitimately surprised at sibling comments missing the subtext
         | here. s/cash/cryptocurrency of parent post and you have word
         | for word the standard complaint against cryptocurrency, which I
         | believe is the point @camjohnson26 is trying to make.
        
           | glogla wrote:
           | That's Poe's law then.
           | 
           | It doesn't help that we've all seen other / real (depending
           | on whether GP is being sarcastic) authoritarians making
           | exactly that argument I guess.
        
           | camjohnson26 wrote:
           | Calling out the subtext would probably lead to completely
           | different responses. The truth is most people don't
           | understand money or the very real reasons why cash and
           | digital currency are important.
           | 
           | Thankfully some brilliant souls pointed out you can buy
           | things with cash. The comments about donating to political
           | parties are especially ironic. Hacker News is great for
           | technological information but way off base when it comes to
           | finance and economics.
        
         | remirk wrote:
         | > Has anyone found a use for cash outside financing criminal
         | operations
         | 
         | Buying groceries.
        
           | alkonaut wrote:
           | Even that is becoming more and more rare. The makeup of a
           | 30-checkout supermarket here (Sweden) is probably 20 self-
           | checkout, 5-no-cash manual ones and 5 that can handle cash.
           | 
           | Many if not all small businesses like hotdog vendors, flea
           | markets etc have completely dropped cash because it's
           | expensive and inconvenient.
           | 
           | Once the costs of cash management is higher than that of
           | cards or digital transactions, there is no incentive.
           | 
           | It's easy to say "we need cash for privacy" but if people are
           | doing better business without cash, it's hard to convince
           | them.
        
         | generalizations wrote:
         | > Has anyone found a use for cash outside financing criminal
         | operations?
         | 
         | That sounds like a restatement of 'who needs privacy if you
         | have nothing to hide'. I use cash because I don't feel like
         | making my purchase history available to anyone with deep
         | pockets. If someone wants to figure out what I buy, I'd rather
         | they just go ahead and hire someone to follow me around.
        
         | fatsdomino001 wrote:
         | Giving money to homeless people.
         | 
         | And as a general principle I don't like having all of my
         | transactions logged and tracked. That's the same fallacy of "if
         | you have nothing to hide, then submit yourself to complete
         | tracking"
        
           | Solocomplex wrote:
           | "it turns out you transferred $20 to a known drug addict and
           | murderer. Mind answering a few questions about that?"
        
         | loceng wrote:
         | I think cash is a failsafe against potential tyranny - so if
         | you value that then there's a need to maintain the cash system
         | and requiring accepting cash as an option.
        
         | glogla wrote:
         | You can't be stopped because Visa and MC don't like what you're
         | doing.
         | 
         | EDIT: here's a quote from when this was discussed in HN last
         | time:
         | 
         | > A society without cash is a society in which every person has
         | no choice but to get the permission of someone they don't know
         | and will never meet each and every time they seek to obtain
         | food, water, shelter, or transportation, and that permission
         | can be revoked instantly, silently, and invisibly at any time.
        
         | hprotagonist wrote:
         | Alms.
         | 
         | Cash tips to underpaid workers of various stripes.
         | 
         | An "Oh, Shit" emergency envelope in the home.
         | 
         | An "oh crap got a flat" $50 in my bike jersey.
         | 
         | Lots of reasons!
        
         | rietta wrote:
         | Cash can be stolen but it can't be data breached. Steal my
         | wallet and get $40. Steal my card and I have hours of work todo
         | to get back to whole even "getting any stolen money back". I
         | prefer cash for small transaction walking around money.
        
         | gruez wrote:
         | >The fact that a hundred dollar bill is worth a hundred real
         | dollars
         | 
         | what? You're saying I can go to a bank, withdraw 90 one hundred
         | dollar bills, and sell it to someone for more than $9000?
        
         | cowboysauce wrote:
         | >Has anyone found a use for cash outside financing criminal
         | operations?
         | 
         | I've gone camping and hiking in plenty of places that have no
         | cellular service so cash is the only way to pay the fees.
         | 
         | >The fact that a hundred dollar bill is worth a hundred real
         | dollars is insanity and proof that its value is a speculative
         | bubble that's being driven by anarchist fanatics and criminals.
         | 
         | Or, you know, because the government says that it's worth 100$
         | and lets you pay 100$ in taxes with it.
        
           | Mediterraneo10 wrote:
           | > I've gone camping and hiking in plenty of places that have
           | no cellular service so cash is the only way to pay the fees.
           | 
           | This seems like more of a reason to push for rolling out
           | wireless connectivity in places of natural beauty than to
           | argue for keeping cash around. Last time I traveled Chilean
           | Patagonia, I was impressed that even the most isolated
           | communities now have 4G and the village general store has a
           | card terminal. In Finnish Lapland, too, where there are
           | almost no people, you almost never lose a mobile phone
           | connection in the national parks, and the shops take cards
           | like anywhere else in the country.
        
             | doktorhladnjak wrote:
             | I know there are many downsides to it, but I enjoy these
             | places where you can get away from the 24/7 always online
             | world. There are so few left anymore
        
             | cowboysauce wrote:
             | >This seems like more of a reason to push for rolling out
             | wireless connectivity in places of natural beauty
             | 
             | I cannot state how strongly I. disagree. Part of the appeal
             | of these places is that you are completely cut off.
             | Destroying that for something as banal as credit card
             | payments is abhorrent to me.
             | 
             | I'd also much rather that the organizations that run these
             | areas spend their money on things other than paying for and
             | maintaining PoS systems. I've yet to see one that's as
             | reliable as a steel post that you jam cash into.
        
             | danShumway wrote:
             | > This seems like more of a reason to push for rolling out
             | wireless connectivity in places of natural beauty than to
             | argue for keeping cash around.
             | 
             | Is there a timeline for when America will get perfect,
             | reliable connectivity in rural/isolated areas? Is it OK if
             | we keep cash around in the meantime until that problem is
             | solved?
             | 
             | Just let us know when that 4G rollout is completely done,
             | and then we can revisit this conversation.
        
           | camjohnson26 wrote:
           | How do you explain hyperinflation?
        
             | cowboysauce wrote:
             | I'd explain it as being irrelevant to this particular
             | conversation since credit/debit cards would also be
             | affected by hyperinflation. Though you'd have the advantage
             | of not having to push a wheelbarrow full of cash around.
        
               | [deleted]
        
         | gumby wrote:
         | Cash is easy for simple informal transactions (e.g. garage
         | sales, farm stands and the like) and where connectivity is poor
         | or nonexistent.
         | 
         | A lot of the alternatives involve unnecessary infrastructure
         | (e.g. PayPal etc have various controls to block money
         | laundering, which isn't the purpose of your once-a-decade
         | garage sale) or are siloed, making it hard to quickly do
         | business with someone who has a different brand of phone or
         | doesn't have the right app installed.
         | 
         | And asynchronous transactions are hard (I used to buy a
         | newspaper by leaving a quarter on a board and grabbing a
         | paper...and this setup was next to a busy subway station!). And
         | farm stands are often simply goods left out on the honor
         | system.
        
         | mensetmanusman wrote:
         | If you donate to political ideas that are unpopular a year
         | later, a twitter mob of ideologues will destroy your career, a
         | la Eich:
         | 
         | https://en.m.wikipedia.org/wiki/Brendan_Eich
        
           | [deleted]
        
         | danShumway wrote:
         | > being driven by anarchist fanatics
         | 
         | Literally backed by the government. Cash is a government-backed
         | store of value.
         | 
         | What kind of hoops do you have to jump through to say "my
         | federally standardized central currency that only the
         | government is allowed to print is a tool of the anarchist anti-
         | state fanatics?"
        
       | siliconc0w wrote:
       | Societies need to implement rules so that any sharing of a user's
       | data needs to flow through data repositories that are controlled
       | by the user and so they can authorize and audit each of these
       | flows. Sort of like an oAuth dialogue, "Mortage Lender A wants
       | access to your 2020 after-tax income" and you'd give them limited
       | access so they could underwrite the loan and it'd be illegal to
       | store the user's data any longer than necessary for that purpose.
       | This would give companies cleaner data and common API while
       | eliminating the possibly for anti-consumer data middle men like
       | credit bureaus who could be then be summarily launched into
       | space.
        
       | korse wrote:
       | I don't like not being able to participate in society when the
       | bank has a technical problem or my credit card company thinks I
       | am committing fraud.
       | 
       | Taking away cash puts me at the mercy of these systems, which is
       | uncomfortable.
       | 
       | I'm also more financially responsible when I have cash, and there
       | are never any 'pending' transactions.
        
         | DarmokJalad1701 wrote:
         | > I'm also more financially responsible when I have cash
         | 
         | It's the opposite for me. It is much more difficult for me to
         | keep track of cash expenses while budgeting and it is easy to
         | forget individual transactions. So much that at this point if I
         | ever take out cash, I consider that money spent as far as my
         | budget is concerned.
        
       | decker wrote:
       | Cash isn't dead. Even in a pandemic, there's a lot of stores that
       | still accept it. This article seems more like clickbait FUD for
       | pumping cryptocurrency.
        
         | fakedang wrote:
         | This actually got me thinking.... What if someone utilized
         | GPT-3 to write incoherent garbage that can pass off in front of
         | Quant firm's sentiment analyzers as trending topics? If one
         | were invested enough, one could certainly pump all sorts of
         | stocks too.
        
         | danShumway wrote:
         | Philadelphia recently passed a law outright requiring stores to
         | accept cash; they viewed requiring a bank account and credit
         | card to be an accessibility problem for homeless residents. A
         | couple of fast-food places I (pre-pandemic) used to frequent
         | switched from requiring credit cards to accepting both
         | afterwards, which was kind of nice.
         | 
         | There is reason in general to be concerned about the lack of
         | good, private digital payment systems, but there are still
         | plenty of cities where a pro-cash sentiment is strong, or at
         | least a pro-"cash should be an option" sentiment. And I suspect
         | (but can't confirm) that rural areas might also bias towards
         | more cash transactions as well.
         | 
         | The general trend away from cash is something to pay attention
         | to, but depending on where you live, it may not be an emergency
         | right now.
        
       | upofadown wrote:
       | There is a third way to have a government issued electronic
       | currency that provides privacy for the purchaser. So the
       | government can't cut off an individual but they can still collect
       | sales taxes.
       | 
       | * https://taler.net/
        
       | camjohnson26 wrote:
       | This is the real killer app of cryptocurrency. Monero is a
       | decentralized, untraceable digital cash that preserves privacy.
       | All the arguments against cryptocurrency can also be applied to
       | cash, but that doesn't take away their main value proposition,
       | which is a mathematically secure way to send payments while
       | protecting the sender's privacy.
        
         | blueprint wrote:
         | As a monero contributor, I can say one problem differentiating
         | it still from the capabilities of cash is the inability to give
         | Monero to someone who doesn't already have a wallet. there's
         | trust involved in every solution we know of so far.
        
           | dougk16 wrote:
           | I get what you're saying of course, but as a fun
           | counterpoint, I gave my brother $50 worth of Monero for
           | Christmas and he has absolutely no idea how cryptocurrencies
           | work, had never heard of Monero. I simply wrote out
           | instructions on a piece of paper, the seed, basic opsec, and
           | there you go. He probably put it in his drawer and forgot
           | about it. But he'll remember and learn how it works real
           | quick if I ever tell him it's at $50,000 or something in a
           | few years haha.
        
             | crusty wrote:
             | That doesn't sound like a cash replacement to me, it sounds
             | like an investment vehicle. The reason cash is cash is that
             | there's no inherent benefit to sitting on it. No one is
             | going to be able to trade 10 $5 bills they put in the
             | drawer this year for 5 $100 bills in a year or two, and we
             | all understand that and operate on that shared
             | understanding. If there's a hope and a real chance that I
             | could get rich by just sitting on a cryptocurrency, I'll
             | have to weigh its divestment against holding it. And the
             | people or entities that have the biggest counterweight to
             | investment are likely to be those who get some additional
             | benefit besides its monetary value that they'd have to pay
             | mightily for with cash anyway, like anonymity for practical
             | rather than political reasons.
        
         | gruez wrote:
         | >Monero is a [...] untraceable digital cash that preserves
         | privacy
         | 
         | Not exactly. A single transaction might be untraceable but over
         | repeated transactions it's possible to deanonymize people with
         | a high degree of confidence. See:
         | https://www.youtube.com/watch?v=9s3EbSKDA3o the good part
         | starts at 10 minutes.
        
           | eindiran wrote:
           | See the Monero team's response here:
           | https://www.getmonero.org/2018/03/29/response-to-an-
           | empirica...
           | 
           | Full original paper here: https://content.sciendo.com/view/jo
           | urnals/popets/2018/3/arti...
        
       | 99chrisbard wrote:
       | Cash please;
       | https://www.granolashotgun.com/granolashotguncom/smart-citie...
        
       | theonlybutlet wrote:
       | There will always be an alternative, maybe even just bartering.
       | Aside from organized crime, simple tax avoidance will be the main
       | driver.
        
       | rvense wrote:
       | This article is very flawed. It mentions two scenarios:
       | decentralized, uncontrolled money, versus government control. But
       | it is missing the third scenario, which is the on that is
       | actually happening in most places: plain old privatization.
       | 
       | The Chinese government might be trying to build a state-backed
       | digital currency, but as the article states it is already almost
       | cashless. And in Europe, as far as I know, each country already
       | has one or a few de facto standard app-based solutions for
       | digital payments between private persons. My country has instant
       | bank transfers between banks and one mobile payment app. And at
       | some point, the (American) smartphone solutions are likely to
       | allow person-to-person transfer. This is all based on existing,
       | privatized banking infrastructure which, while obviously not
       | completely outside government control, is certainly not a public
       | resource like the cash-based infrastructure was.
        
       | typenil wrote:
       | As long as it's framed as a way to cut off immoral right wing
       | extremists from the financial system, Silicon Valley will
       | enthusiastically embrace dystopian government control of
       | currency.
        
         | excannuck wrote:
         | And 20 years ago, neo-cons embracing dystopian government
         | control to make sure muslims didn't use cash.
         | 
         | It's all control. But instead of seeing it as right vs. left,
         | its better framed as authoritarians (historic and modern left
         | [1], Silicon Valley, FBI) vs. people who value their freedom
         | and privacy either because its innate to their being, or
         | because their particular group is kept under a watchful eye
         | (gays in the 80s, muslims 20 years ago, christians people
         | today).
         | 
         | Avoid getting ensnared in the identity trap the way you just
         | did. Once you do, you've accepted the basic premise of identity
         | politics and, therefore, things like CRT; which is just
         | 's/class/identity/g' for Marxism.
         | 
         | [1] that is all of the left's history from the Jacobins until
         | today minus twenty or thirty years centered around the early
         | 90s.
        
           | kevinventullo wrote:
           | Christian people are kept under a watchful eye in the US
           | today? All 200 million of them?
        
             | faissaloo wrote:
             | Yes, along with everyone else, the NSA exists.
        
         | [deleted]
        
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