[HN Gopher] Cryptocurrency is something people tell lies about i...
       ___________________________________________________________________
        
       Cryptocurrency is something people tell lies about in hopes of
       getting richer
        
       Author : CynicusRex
       Score  : 331 points
       Date   : 2021-09-24 10:34 UTC (12 hours ago)
        
 (HTM) web link (defector.com)
 (TXT) w3m dump (defector.com)
        
       | BTCOG wrote:
       | Here's your seemingly month reminder that there is only one
       | cryptocurrency. Bitcoin.
       | 
       | NFTs are epitome of tulip mania. Bitcoin, while it does increase
       | in value due to low supply, is the only secure and actually fair
       | escape hatch to the global monetary system and holds value
       | globally. Proof of Stake, and every single coin below Bitcoin,
       | copied from Bitcoin, are similar to fiat and centralized.
       | Ethereum is the worst of the bunch and is scamming millions.
        
         | mywittyname wrote:
         | Let's accept your premise for the sake of argument.
         | 
         | Why do you thinik the contagion from other crypto scams
         | imploding won't bring down BTC? Will people still trust BTC if
         | they lose trust in other crypto?
        
           | BTCOG wrote:
           | The rest are completely irrelevant.
        
             | postalrat wrote:
             | To me this sounds like more lies.
        
         | kharak wrote:
         | For everyone who doesn't follow crypto. OP is obviously a
         | Bitcoin maximalist. For them, the world of crypto begins and
         | ends with Bitcoin.
        
         | rchaud wrote:
         | A fair escape hatch?
         | 
         | Anybody can buy BTC with stablecoins, which are unaudited, and
         | whose creators have openly lied about maintaining a 1:1 ratio
         | between USD and stablecoins in circulation.
         | 
         | Say what you will about fiat, but no bank in the world will let
         | me exchange monopoly money for something I can use to buy a
         | sandwich.
        
       | bo1024 wrote:
       | I think NFTs are really dumb, a scam, and/or vectors for money
       | laundering. Then again, I think the same thing about multimillion
       | dollar private artwork and politicians' "nonprofits".
       | 
       | I think most cryptocurrencies and tokens are really dumb or a
       | pyramid scheme. Then again, I think the same about multilevel
       | marketing and much of the modern real estate and stock markets.
       | 
       | But I also see the really exciting potential and promise of
       | blockchain tech. People are working on expanding access to
       | capital and systems to countries with unstable currencies.
       | They're working on the future of the corporation beyond
       | capitalism with DAOs. Enabling micropayments for creators. Much
       | more. It's tiring seeing all these articles harping on the
       | downsides without acknowledging or looking into the upsides.
       | 
       | Probably because the system works fine for these authors --
       | they're somewhere with a stable currency, their 401k is going up,
       | etc. Blockchain is a space where people are actually dreaming of
       | something different and better instead of accepting the status
       | quo. Meanwhile in the U.S. we have a Fed printing trillions of
       | dollars to prop up asset prices, we have wars to support USD
       | hegemony. In other countries their wages inflate away before they
       | can spend them, etc.
       | 
       | I don't know a lot about all this stuff but I really respect the
       | part of the blockchain space which is about broadening access,
       | decentralizing power, and envisioning new systems.
        
       | voidray wrote:
       | If you take every long-refuted criticism of Bitcoin along with
       | cherrypicked examples of cringe celebrities endorsing it, and you
       | combine that with misinformed neo-Marxism and an unquestioning
       | acceptance of government officials, you get this article.
       | 
       | If your average sports writer actually wanted to understand the
       | space, they could read something with real data:
       | https://nydig.com/wp-content/uploads/2021/09/NYDIG-Bitcoin-N...
        
         | oyf wrote:
         | > Since 1920, at least 55 hyperinflation events have taken
         | place, destroying savings and creating economic hardship...
         | Bitcoin offers the world an alternative - a sound monetary
         | system outside the control of governments and central banks.
         | 
         | The paper you linked doesn't exactly get off to a good start,
         | considering there are ~1600-2200 dead/worthless
         | cryptocurrencies (see below) and Bitcoin itself is incredibly
         | volatile. It's somewhat absurd to claim Bitcoin is the stable
         | alternative to fiat currencies, or the solution to cases of
         | currency collapse. The rest of the summary is just speculation
         | on how the carbon footprint of Bitcoin might be reasonable in
         | the future. Would you mind pointing out the parts that you feel
         | refute the article's criticisms?
         | 
         | https://www.coinopsy.com/dead-coins/ https://deadcoins.com/
        
           | overlaid wrote:
           | BTC _specifically_ has seen it 's volatility drastically
           | reduced. It's not hard to find several stocks with a much
           | higher volatility in the last month, particularly the last
           | week.
           | 
           | Many other cryptocurrencies still experience extreme
           | volatility on par with BTC's early history.
        
           | doomroot wrote:
           | > Bitcoin itself is incredibly volatile.
           | 
           | Largely in the right direction.
        
             | oyf wrote:
             | Good point, but you have to consider that if we're talking
             | about a scenario in which it's being used in the place of a
             | national currency, the bigger picture matters less. If your
             | paycheck can lose 20% of it's value in a few days you may
             | not have the option to wait for it to possibly regain that
             | value. Even ignoring the short term issues, I'm not
             | convinced Bitcoin is any more protected from becoming
             | totally worthless than any given fiat currency. I just
             | can't see the scenario in which it solves or even helps the
             | issue of hyperinflation in a way that fiat currency
             | couldn't.
        
         | ahoy wrote:
         | This is the exact kind of utopian fantasizing that the article
         | talks about. Charming!
        
           | voidray wrote:
           | Can you be more specific?
        
       | crumpled wrote:
       | Keep in mind that Bitcoin is vulnerable to cracking by quantum
       | computers some time in the next couple decades.
        
         | swift532 wrote:
         | This is kind of overstated. From what I remember, it only makes
         | addresses vulnerable after you spend from them, and in all
         | likelihood the network would migrate to a resistant algorithm.
        
       | [deleted]
        
       | maxharris wrote:
       | Thanks for posting that. I hadn't seen Jack's pro-Bitcoin tweet,
       | and seeing it here allowed me to like and share it.
       | 
       | This author obviously has an axe to grind, so I didn't get much
       | out of his words.
        
         | AmericanChopper wrote:
         | I got about half way through the article, and all I'd read was
         | a bunch of poorly attributed motives the author had invented
         | for the people who participate in cryptocurrency.
         | 
         | Did they actually get around to talking about cryptocurrency at
         | any point?
        
       | kureikain wrote:
       | One thing funny about cryptocurrency is that it's built for
       | highly technical group of audience. But in my peers, a majority
       | of people who get benefit from it are non-tech user.
       | 
       | Think of wallet concept. The wallet literally hold nothing. The
       | fund isn't a file or something that the wallet keep. The wallet
       | is simply server as an interface. The transaction can generate
       | off chain. You can signed the transactionor any message to prove
       | who you are. Read is essentially free but write contract cost
       | gas. How can we explain these to a normal user? Why Solana is so
       | fast and Ethereum is slow?
       | 
       | Now, the highly technical user understand those concept and feel
       | something shady about a certain thing. Then they don't buy it.
       | Meanwhile, othergroup get rich so quick and it makes the world
       | feel like crypto is a ripoff.
       | 
       | Add in the controversal stuff such as Sushi fork Uni, then
       | founder run off with $14m(and later return)...
       | 
       | all of that made crypto looks really bad.
       | 
       | But now let's see what blockchaing give us from a technical
       | perspective. It's a distributed database where you can store data
       | into it, like git, and can prove and trust it's what you write
       | into it.
       | 
       | Example, DNS. DNS is very decentralize but what if your DNS
       | server decided to return something different from the name
       | server. What if we store DNS into blockchain? Write to it cost
       | money but read is essentially free as long as you have a node.
       | 
       | But due to the highly cost of mining, and the craziness of its
       | price, develop on blockchain is costly and it push people away
       | because the people who want to build something on it doesn't have
       | the fun. I, for one, want to do the above DNS idea with Ethereum
       | but choose to go with Solana because Ethereum cost is just so
       | damn high...
        
       | space_rock wrote:
       | The rebranding of MySQL as blockchain was a brilliant move for
       | sales. Bit torrent is decentralized and it doesn't use
       | "blockchain". "Blockchain" only works for money and nothing else
        
         | TrackerFF wrote:
         | World's most expensive linked-list.
        
         | wpietri wrote:
         | I mean, if you look at transaction cost, settle time, user
         | friendliness, and currency risk, it doesn't even work as a
         | medium of exchange, which is the definition of money.
         | 
         | More than a decade on, approximately nobody uses Bitcoin for
         | normal transactions. Compare with Venmo or MPesa, both of which
         | launched around the same time, to se what actual digital money
         | looks like. Both of those do way more transactions than Bitcoin
         | and are much more widely adopted.
        
           | doomroot wrote:
           | Why does the bitcoin blockchain need to be used for normal
           | transactions? Do you not think a neutral payment rail/unit of
           | account between nation state level actor's could be valuable?
        
             | kristjansson wrote:
             | _Anything_ that one could get central banks or nation
             | states to agree to use would be valuable. The LOE the
             | technical system (SWIFT, Bitcoin, whatever) is absolutely
             | infinitesimal compared to negotiating a change of that
             | magnitude.
        
             | ARandumGuy wrote:
             | These nation state level actors would need to convert their
             | Bitcoin into something that they can actually spend.
             | Governments need to pay employees, contractors, and
             | suppliers. These people want actual currency they can
             | spend.
             | 
             | The main alternative would be to issue a Bitcoin backed
             | currency. But then you're just re-creating the gold
             | standard, and all of the problems that go along with that.
        
             | imtringued wrote:
             | In my opinion there is nothing wrong with third parties
             | offering services on top but you know, the whole
             | cryptocurrency idea is that you don't need them.
        
             | wpietri wrote:
             | Let me refer you back to the original paper:
             | https://bitcoin.org/bitcoin.pdf
             | 
             | The goal was "a purely peer-to-peer version of electronic
             | cash". That is, money.
             | 
             | If you are proposing a new goal, a settlement system for
             | couple hundred named organizations with strong
             | relationships, then a) that's not money, and b) the Bitcoin
             | system is socially and technically wrong for that. But if
             | we keep the goalposts in their original location, Bitcoin
             | is clearly a failure when you look at how the competition
             | has done.
        
           | horsawlarway wrote:
           | Hard agree - the only thing bitcoin can reasonably be spent
           | on for most folks is black market goods (usually drugs).
           | 
           | Which is really why bitcoin exists as thing today, in my
           | opinion. It was a way to pay for drugs over the internet.
           | 
           | The rest of the pricing is _purely_ speculation, and it hurts
           | any real utility it might provide.
        
             | wpietri wrote:
             | For sure. And I think that speculation (with attendant
             | market manipulation) are the main observed purpose of it
             | these days. The total drugs market is large, but I'd be
             | surprised to learn that even 1% passes through all the
             | cryptocurrencies put together. Especially Bitcoin given how
             | traceable it is.
        
             | mywittyname wrote:
             | It does seem to be used by people transferring funds
             | internationally, especially from SEA to the USA.
        
               | wpietri wrote:
               | Oh? What percent of international transfers are using it?
        
               | mywittyname wrote:
               | No clue. I just know people who do it.
        
               | wpietri wrote:
               | Got it. I mean, I know people who ride unicycles. But for
               | this I'm not interesting so much in "is it possible" as
               | "is it effective and widely adopted".
        
               | mywittyname wrote:
               | Agree, anecdotes aren't data. But seeing non-tech-savvy
               | people doing it definitely makes me think it's somewhat
               | common. I posted half with the expectation that someone
               | would chime in with some personal experience on the
               | topic; HN has a pretty diverse group here.
               | 
               | I found a number of guides on the pros and cons of
               | various international money transfers options, and BTC is
               | often included as an option. I also found some recent
               | (and old!) articles about its use as a remittance system
               | in poorer areas of the world[1].
               | 
               | > Other emerging market central banks in Latin America,
               | India, and Southeast Asia, where remittances make up a
               | significant share of the economy, are in a similar bind.
               | Bitcoin transfers surged in emerging markets last year,
               | as the pandemic accelerated the rise of cheaper, more
               | efficient digital remittance services.
               | 
               | [1]https://qz.com/africa/1983610/bitcoin-draws-millions-
               | of-work...
        
           | jdauriemma wrote:
           | Add Starbucks to that list
        
         | Destiner wrote:
         | Even if so, "only money" is a multi trillion dollar industry.
        
         | fksadfji12 wrote:
         | Money was the entire point...
        
         | overlaid wrote:
         | > The rebranding of MySQL as blockchain
         | 
         | Sadly this really _is_ the most nuanced definition of
         | "blockchain" that many people can understand
        
           | space_rock wrote:
           | It is the only definition of blockchain that matches it's
           | use. Where they copied the word from, the bitcoin
           | datastructure, is unrelated
        
       | JohnJamesRambo wrote:
       | Q4 is set to be an amazing crypto run because all I see is lots
       | of last minute FUD right now on all media channels, and of course
       | from China. The OG FUD source has blown its final wad and banned
       | all crypto "for real this time." Let's hope the USA isn't as
       | backwards thinking and sees that banning crypto is removing
       | yourself from the new world economy.
        
         | EliRivers wrote:
         | Surely you DO want the USA to ban crypto? I'm assured that
         | crypto bans make the price go sky high and then the whales can
         | cash out into dollars.
        
       | codingclaws wrote:
       | Off topic. Did anyone else's AI generated text radar go off on
       | this article? Seems like too many fancy words.
       | 
       | I wonder how many media outlets use GPT-3 to help generate
       | content.
        
         | spywaregorilla wrote:
         | Unless specifically encouraged, GPT-3 would probably prefer to
         | use common language.
        
         | mahidhar wrote:
         | Actually it's pretty weird. This is a sports blog and content
         | engine. And the author is someone who started this publication.
         | I'm not sure what the motivation/context is at all here.
        
         | lern_too_spel wrote:
         | The author does seem to be influenced by the writing style of
         | https://www.pakin.org/complaint, but the arguments he presents
         | are coherent.
        
       | HelixEndeavor wrote:
       | I won't pretend I'm a computer genius or anything, but I feel
       | like I understand tech at least more than the average Joe - at
       | least, I'm the designated IT guy for computer problems faced by
       | anyone I know.
       | 
       | The fact that, despite having it explained multiple times by
       | multiple sources multiple ways, I still can't seem to wrap my
       | head around how crypto functions... Makes me suspicious. It feels
       | like the whole idea is to obfuscate it's functionality to the
       | point it becomes this incomprehensible enigma - by design.
       | 
       | If it's not easy to comprehend, and instead a strange mystery
       | number that moves between even stranger mystery-er numbers,
       | someone is bound to think those numbers must be worth something -
       | otherwise it wouldn't exist, right?
       | 
       | Basically what I'm saying is cryptocurrency sends me into an
       | existential spiral of thoughts about how all value is just
       | perceived and agreed upon and 90% of what we call "the economy"
       | is just fake. Look up fractional reserve banking and join the
       | existential crisis with me!
        
         | imtringued wrote:
         | Honestly, one of the funniest things about our money system is
         | that it keeps changing. Our understanding of money isn't really
         | "finished". We ended up with a promise (also known as debt)
         | based system by "accident" (through slow evolution) and that
         | people have to catch up to this.
         | 
         | https://youtu.be/ZFRVfXeIaek
        
         | a_rustacean wrote:
         | "I don't understand it, therefore there is something suspicious
         | about it" is a very dangerous way of reasoning.
         | 
         | We burned innocent people because of this not long ago.
         | 
         | Anyways, I find the Bitcoin paper very approachable. You may
         | need to read it a bunch of times until everything clicks into
         | place. But it's all there, in just 8 pages.
        
         | academia_hack wrote:
         | It's really just a very slow, very inefficient and very public,
         | database with an audit log of hashes keeping track of every
         | change made. Everything else is just fluff/hype around that
         | idea.
        
         | x3n0ph3n3 wrote:
         | > I still can't seem to wrap my head around how crypto
         | functions... Makes me suspicious. It feels like the whole idea
         | is to obfuscate it's functionality to the point it becomes this
         | incomprehensible enigma - by design.
         | 
         | It's certainly _not_ just obfuscation and smoke+mirrors. It 's
         | only as complicated as it has to be and the mathematics behind
         | it are solid. Unfortunately, it is complicated enough that most
         | people won't be able to easily understand it.
        
         | landemva wrote:
         | 'existential spiral of thoughts about how all value is just
         | perceived and agreed upon'
         | 
         | Yes, you are awakening. Cultures seem to like jewelry and art.
        
       | streamofdigits wrote:
       | Cryptocurrency was a broken concept from the very start. It
       | assumed that you can build a financial system by engineering
       | "trust" in purely technical terms.
       | 
       | Trust is something between humans. If you cannot find an
       | arrangement of checks and balances that gives people comfort that
       | the "system" is not ripping them off there is no amount of
       | cryptoaccounting that will solve it for you.
       | 
       | The very anonymity of the bitcoin founder(s?) shows this was
       | never an honest-to-goodness project. Its not surprising then that
       | crypto never solved any real economic problem. As in: making any
       | economy a tiny bit healthier, more resilient, less unequal. Not a
       | single one.
       | 
       | But had it stayed a failed financial reform project would have
       | been one thing. It is heartbreaking to witness the amount of
       | fraud, waste of resources and manipulation it unleashed. Its
       | ongoing amoral adoption by the formal financial system as "yet
       | another asset class offering diversification to our customers" is
       | a fitting closure.
       | 
       | The chicken came home to roost.
        
         | trixie_ wrote:
         | All I know is that I actually feel in control of my money with
         | crypto and can easily move it around the world. ACH and wire
         | transfers are painful in comparison.
        
           | streamofdigits wrote:
           | I am not defending existing monetary systems. The cost and
           | difficulty of transfers is in no small measure the result of
           | cartels that the official system is quite happy to let fester
           | because they haven't seen an oligopoly they didn't like.
        
             | trixie_ wrote:
             | I'm sorry, it has nothing to do with cartels and everything
             | to do with an incredibly complex banking infrastructure
             | running mostly on fortran and cobol.
        
               | streamofdigits wrote:
               | I'm sorry, do some research. A few large operators keep
               | the remittances costs high.
               | https://voxeu.org/article/stubbornly-high-cost-
               | remittances
               | 
               | As for fortran and cobol, why change the technology if
               | you are sitting pretty?
        
         | imtringued wrote:
         | In my opinion it feels like Bitcoin was designed by an amateur
         | from a monetary perspective. Imagine if governments actually
         | used it. Inequality would get worse than it already is. People
         | buy it because of the multi level marketing aspect. Someone
         | bought Bitcoin and they tell others to buy it, rinse and
         | repeat.
         | 
         | People will call "nocoiners" jealous because they missed some
         | train after all they didn't buy Bitcoin when it was at $100.
         | Yet they talk about how oppressive the government provided
         | financial system is. Like how getting -0.5% negative interest
         | on savings above $100k is the end for the small saver but
         | having your money go up 10x because you bought it early and
         | having the purchasing power of your labor go down by 10x
         | because you bought too late is the paragon of equality. One
         | year of work buys me less Bitcoin than 3 years ago. I'm getting
         | priced out like with real estate. It's really puzzling to me
         | how this is supposed to lead to a crypto utopia.
        
           | streamofdigits wrote:
           | The jealousy argument just reveals the character and
           | knowledge level (and maybe age) of the people who make up the
           | cryptomania movement.
           | 
           | Money is not a "asset class", it is a claim on other people's
           | time and the economic value they can generate with their work
           | and talent. It is only "worth" the value of the community
           | that accepts it as a legitimate tender. If a token dollar is
           | worth something it is because a vast range of people will
           | happily exchange it for something trully valuable.
           | 
           | The economy of a community made up of speculators and
           | extortionists is worth exactly zero (if not negative) and it
           | is a matter of time before this transpires.
           | 
           | The only positive thing to say about bitcoin and friends is
           | that is showed to many more people that monetary system
           | alternatives are in principle possible. Ofcourse some people
           | have been for ages working on complementary currencies and
           | such. Digital and programmable currencies _are_ the future,
           | but they will have to become real economic tools that will
           | fix true problems before they stand a chance against the
           | current system.
        
       | cfup wrote:
       | I was involved in a blockchain (DeFi) startup. All the blockchain
       | companies are mostly a huge pyramid scheme. The company I worked
       | for has a lot of big claims, raised millions, wanted to solve
       | world hunger, prioritized partnership, marketing, while having no
       | working implementation. Others in the eco system are the same.
       | 
       | The NFT scene is even more BS. It could destroyed uninformed
       | people's life, just like gambling. However, this kind of gambling
       | is public on the internet with little regulations.
       | 
       | I hope more tech people speak about this instead of just ignoring
       | them.
        
         | ngokevin wrote:
         | The most absurd thing I've ever heard was crypto could help
         | people in Africa store their diplomas.
        
         | hanniabu wrote:
         | "I worked for a sleezy startup that was scamming people,
         | therefore all companies are scams"
        
           | cfup wrote:
           | "I worked at a sleezy startup and meet a bunch of partners
           | doing similar things, and most of them are worse or just as
           | sleezy"
           | 
           | - But cuz you work in a sleezy one so you can only meet the
           | bad company
           | 
           | We were very technical oriented in the beginning. I was hired
           | to do formal verification and system design. Until, money
           | happened, and founders realize they over promised.
        
           | boh wrote:
           | Are you suggesting your statement is sarcasm?
        
         | overlaid wrote:
         | How did the pyramid scheme work? Who was recruiting (not in an
         | abstract sense)? What were the rewards for getting new
         | recruits?
        
         | dotlog wrote:
         | Was is literally a pyramid scheme that recruited people and
         | paid people for getting new recruits? Or just a scheme?
        
         | xur17 wrote:
         | > I was involved in a blockchain (DeFi) startup. All the
         | blockchain companies are mostly a huge pyramid scheme. The
         | company I worked for has a lot of big claims, raised millions,
         | wanted to solve world hunger, prioritized partnership,
         | marketing, while having no working implementation. Others in
         | the eco system are the same.
         | 
         | I agree that there are lots of scammy "blockchain" startups,
         | but I don't think it's fair to paint them all with that brush.
         | There are also plenty that are actually building cool projects,
         | without pumping their coin, and announcing light interactions
         | with a company as partnerships.
         | 
         | If you have 20% of companies being scummy, but churning out 80%
         | of the news, your assumption will be that all of the companies
         | are scummy.
        
       | aazaa wrote:
       | > The hucksterish utopian rhetoric and blustering ambient scuzz
       | of the broader cryptocurrency thing as it exists in this moment--
       | the clammy slew of posturing experts, the open mendacity and
       | barely concealed rube-running bad faith, the actual criminality
       | and simple goonery that define its day-to-day--do the idea at the
       | center of it no favors, but that is, more or less, the thing that
       | always happens to any idea once people get ahold of it. Again,
       | this is something that most people understand without really
       | understanding how they understand it. At some point, when you are
       | being lied to all the time and everywhere, you just know when
       | it's happening.
       | 
       | There are way too many words in that article, yet the author
       | manages to say almost nothing that hasn't been said before. I
       | suggest removing all adverbs and adjectives, then re-writing.
        
       | nootropicat wrote:
       | In absence of real economic growth winning at zero and negative
       | sum games is the only realistic chance at making it in the
       | broadly defined West. The ponzi trend is only going to grow until
       | the whole system collapses under itself. People not playing the
       | game are going to lose the most, as unfair as it is, because rich
       | executives are going to exploit their positions and dump their
       | bags on public companies they control. In more corrupt cases,
       | countries instead of companies. It's only going to grow.
       | 
       | Even so, arguably crypto ponzi games are harmless compared to
       | more socially accepted ways of wealth extraction. Facebook,
       | twitter and other mass social media destroyed society and utilize
       | best ai/ml in existence to steal people's attention, at this
       | point they should be viewed as human hostile ais. The lost
       | potential of years wasted on pointless flamewars and mindless
       | clicking is immeasurable. So many smart people wasting their best
       | years on making ads even more effective instead of creating
       | actual wealth.
       | 
       | In the good timeline there was no bailout in 2007 and the global
       | financial system completely disintegrated, deleting most of fake
       | wealth and unsustainable liabilities in the process, but without
       | long term damage to real productivity.
       | 
       | This is the bad timeline in which wealth extraction dominates
       | until there's nothing left, after which everything stops with no
       | system energy reserves. That's how Soviet Union ended.
        
       | lkrubner wrote:
       | Regarding an interesting counter-example to blockchain hype,
       | check out Omnichains:
       | 
       | https://www.omnichains.com/
       | 
       | They initially argued that they could provide an unrivaled form
       | of transparency because they kept all the data on the blockchain.
       | But now I'm working for a customer of their's, and I realize
       | there is no blockchain. I believe they now run a standard service
       | backed up by a standard SQL database.
       | 
       | But look at their marketing:
       | 
       | " _Omnichain has earned the prestigious recognition for its
       | innovative solution that is helping brands and retailers create
       | more transparent, connected supply chains and drive intelligent
       | process automation._ "
       | 
       | Or check out this blog post:
       | 
       | " _Lack of visibility is not a new problem. Supply chains have
       | long dealt with fragmented management systems and data siloes--
       | barriers that limit transparency, efficiency, and collaboration
       | between stakeholders. The pandemic only magnified these
       | challenges._
       | 
       |  _...Moving forward, end-to-end visibility solutions--made
       | possible by technologies like blockchain--will be instrumental in
       | helping businesses proactively identify risks and pivot
       | accordingly. So going back to suppliers, manufacturers can use
       | blockchain to connect and share data with their suppliers. With
       | accurate, real-time visibility into available resources upstream,
       | they can quickly identify alternate sources if needed, and
       | ultimately prevent costly production delays._ "
       | 
       | I have the impression this company started off hoping to use the
       | blockchain to create a more transparent supply chain. I also have
       | the impression they have pivoted away from that vision.
       | 
       | And that's fine, of course. I'm not criticizing them. A startup
       | starts with one hypothesis, tests it, and then pivots when that
       | first hypothesis fails. This is good management.
       | 
       | But I think, in a small way, it indicates what is happening with
       | those startups that got started when blockchain hype was at its
       | peak. Two or three years ago you could get money from investors
       | by promising to revolutionize an industry by using the
       | blockchain. And now it's turning out that the blockchain is less
       | useful than was supposed for creating new kinds of transparency.
       | 
       | As it turns out, supply chain transparency is limited by each
       | companies unwillingness to share it weaknesses, it's lack of cash
       | flow, it's lack of inventory, and it's slow shipping times.
       | Blockchain can not fix any of those things.
       | 
       | And as I've said elsewhere, with these industrial applications of
       | blockchain, I've yet to see a service that could not have been
       | done more easily with a standard framework (Ruby On Rails or
       | Django or Symfony or NodeJS) sitting in front of a standard SQL
       | database.
       | 
       | A final point: this is my first time working on a big
       | retail/warehouse project, and I am absolutely shocked at the
       | primitive technology that is currently in use. Most of these
       | companies lack APIs, which, in the year 2021, I find shocking.
       | For our warehouse, for instance, there is no way to do an API
       | call to find how much of a particular item is still in inventory.
       | And this clearly limits how much the blockchain is able to change
       | anything.
       | 
       | And this is especially wild: I've spoken to the good folks at
       | Omnichains, and they tell me that they do not have an API.
       | Rather, they can send us a CSV file at regular times, but that is
       | it. In the year 2021!
       | 
       | Just amazing.
        
       | jcbrand wrote:
       | This article conflates NFTs with cryptocurrency, in a way that
       | looks to me to be intentional in order to bolster his argument
       | that crypto is for rich people to conspicuously consume and to
       | pump and dump on the plebs.
       | 
       | NFTs aren't money, or currency and just because they can be
       | created on some blockchains doesn't make them so.
       | 
       | I also don't see a genuine effort from the author to really
       | understand why proponents think that this technology will
       | positively change the world. You might not agree with them, but
       | at least then rebut their arguments instead of creating straw
       | men.
       | 
       | Bitcoin is open source, the original founder is nowhere to be
       | found, there were no VCs involved in its creation or in the
       | distribution of the coins and the entire network is run out in
       | the open. The Bitcoin network is a commons.
       | 
       | The permissionless, decentralized, p2p and stateless aspect of
       | cryptocurrencies like Bitcoin is as revolutionary as it was 12
       | years ago, and in these 12 years "normal" (i.e. non-rich) people
       | had access to them as much as anyone else. Heck, 10 years ago
       | there were faucets that would hand out 5 bitcoins if you solved a
       | captcha.
       | 
       | The people who are today involved in the creation and
       | distribution of fiat money have incredible power, a power which
       | is largely hidden from view, but which actually drives and shapes
       | a lot of what we see. Of course these people won't take an open
       | source competitor lying down.
        
         | shkkmo wrote:
         | I don't see any such conflation, nor do I see any rejection of
         | cryptocurrency's future potential. This article is primarily
         | about what is happening with cryptocurrency right now:
         | 
         | > Whatever cryptocurrency might someday be For All Mankind, it
         | is most urgently and avidly in this moment something that
         | people tell weird lies about in hopes of getting richer.
         | 
         | You seem intent on spreading such get rich quick and utopian
         | dreams on cryptocurrency. How much do you have invested in the
         | ecosystem?
         | 
         | Edit: In my opinion, people who genuinely care about the
         | revolutionary potential of Bitcoin need to avoid feeding the
         | hype train that helps normalize the sketchy lieing behavior in
         | the ecosystem and simply work on building that future instead.
        
           | jcbrand wrote:
           | > You seem intent on spreading such get rich quick and
           | utopian dreams on cryptocurrency.
           | 
           | Please point me to where I spread get rich quick dreams in my
           | comments.
        
         | KorematsuFredt wrote:
         | May be I am too old but completely fail to see any value in the
         | notion of NFT. I do see value in Bitcoin. Bitcoin has basically
         | thrown a wrench into all government controls on cross border
         | payments. I don't know if Bitcoins will be very successful or
         | not, but I am pretty sure the concept will last very very long.
         | 
         | NFTs on other hand appears to be equivalent of selling Golden
         | gate bridge to tourists.
        
         | boh wrote:
         | Not really a revolution when most people just trade it (mostly
         | via fiat money). The original idea was for Bitcoin to be a
         | currency, unfortunately the "hodlers" won, now its only reason
         | to exist is to be more expensive. Boosters are still milking
         | the original premise as some revolution they're supporting,
         | when of course, if you ask how much of their crypto assets
         | they've actually used/spent, the typical answer is 0%.
         | 
         | Satoshi is dead, the dream is dead, people are just trading the
         | corpse
        
           | leppr wrote:
           | L2s and decentralized stablecoins keep the dream of a free
           | decentralized economy alive. It's a smaller community for
           | sure (as most pretend enthusiasts aren't actually interested
           | when there's no Ponzi in it for them, and most detractors
           | would rather focus on easier strawmen), but it exists and
           | it's thriving.
        
         | Synaesthesia wrote:
         | What has happened in those 12 years has been a great deal of
         | scams, get rich quick scheme a and instability. Bitcoin has
         | also become dominated by a few major players and is a power
         | structure in itself, not really benefitting ordinary people
         | much at.
        
           | jcbrand wrote:
           | Bitcoin is NOT dominated by a few major players. A few years
           | ago when some large commercial players wanted to increase the
           | block size, they weren't able to do so because a majority of
           | nodes on the network rejected their code.
           | 
           | The Bitcoin network has stayed remarkably stable and it's
           | still possible to run a node on a raspberry pi, which is done
           | exactly because the Bitcoin community value the ability of
           | normal people to participate and be able to verify their
           | transactions and that of the whole chain.
           | 
           | Concerning scams. Let's look at another relatively open
           | technology. Email.
           | 
           | The vast majority of emails are actually spam, and a lot of
           | those are scams (phishing, Nigerian princes etc.). In the
           | beginning a lot of people fell for email scams, many still
           | do, but by and large people are aware they exist and are able
           | to use email productively without constantly falling victim
           | to scams.
        
             | boh wrote:
             | Most people who have Bitcoin don't spend it, only trade it.
             | If you're only trading it, then your only interaction with
             | Bitcoin is via exchanges. A handful of exchanges control
             | most of the trades.
        
           | WinstonSmith84 wrote:
           | the ecosystem from 12 years ago is radically different from
           | what it is now. Heck, it's radically different from what it
           | was just 2 or 3 years ago.
           | 
           | And well, it benefits (smart) ordinary people. That is, those
           | who have invested or are investing. Smart money is here - and
           | small investors are here too. And I'm saying purposefully
           | "investing" as opposed to "trading". The former doesn't
           | require any technical skills.
           | 
           | As for "ordinary people" not versed into technologies doing
           | what their government is telling them to do (bans, warnings,
           | hackers, criminals, murderers, ...), well... I'm feeling
           | sorry for them, but crypto cannot just replace local country
           | currencies without government consent. Now think again: who
           | is to blame?
        
             | boh wrote:
             | Yeah 12 years ago people actually thought they'd be using
             | Bitcoin as it was intended: as a currency. Now most people
             | know better than to do anything but trade it.
        
               | WinstonSmith84 wrote:
               | oh come on. - defi? - Twitter introducing tips in crypto?
               | ..
               | 
               | personally speaking I'm paying every day with a crypto
               | card (which gives me a few % cashback ..). But that's ok,
               | you seem to purposefully want to miss the train, can't
               | help people against themselves I guess :shrug:
        
               | boh wrote:
               | For the past year your train cost you <$1<$4 for every
               | dollar you spent.
        
               | imtringued wrote:
               | You do know you're missing the train by spending your
               | crypto?
        
               | shashasha2 wrote:
               | Spending does not prevent stacking... The more you spend
               | sats, the less you need Fiat...
               | 
               | Also velocity will get rid of volatility !
        
               | boh wrote:
               | And value. One of the reasons Bitcoin is so expensive is
               | bcs most of it isn't being traded. If people actually
               | start using it and loosen the supply, value goes down.
        
               | imtringued wrote:
               | It's designed to be harder than gold. When there is a
               | shortage of gold people starting mining it. With Bitcoin
               | there is always a shortage of money. I don't know why
               | people think expensive money is good money. It really
               | isn't.
        
         | CynicusRex wrote:
         | You need to buy crypto"currencies" to get into NFTs as far as I
         | know; there's no conflating.
        
         | dpedu wrote:
         | > Bitcoin is open source, the original founder is nowhere to be
         | found, there were no VCs involved in its creation or in the
         | distribution of the coins and the entire network is run out in
         | the open. The Bitcoin network is a commons.
         | 
         | Hmmm. You've conveniently danced around any suggestion or
         | mention of the fact that the "creator" of bitcoin mined 1.1
         | million - 1/20th of all bitcoins that will ever exist(!) -
         | coins in private before launching bitcoin publicly and holds
         | them to this day.
        
           | jcbrand wrote:
           | Those coins have never moved in all these years. You would
           | think that Satoshi would want to spend and enjoy some of his
           | riches right? To me this points towards Satoshi likely being
           | dead (e.g. him being Hal Finney).
           | 
           | Also, AFAIK those were mined because Satoshi was the first
           | miner, not because he purposefully kept it private in order
           | to get the most for himself before anyone else could
           | participate.
        
             | rfd4sgmk8u wrote:
             | Satoshi isn't Hal, and please stop suggesting it is. You
             | put Hal's family in danger with this nonsense.
        
             | dpedu wrote:
             | Some of those coins moved in the last year or so [1]. Just
             | because they haven't moved for a long time doesn't mean
             | they won't tomorrow.
             | 
             | 1. https://coinmarketcap.com/alexandria/article/satoshi-is-
             | that...
        
               | jcbrand wrote:
               | Those are coins from 2010, not 2009 when Satoshi started
               | mining and they're not from the same addresses.
        
           | rssoconnor wrote:
           | This isn't true. The genesis block references a Times
           | headline published on Jan 3rd 2009, so that block was created
           | no earlier than that. The source code was published and
           | publicly available on Jan 9th 2009, which is 6 days later.
           | Blocks were mined much slower than the target of every 10
           | minutes in the beginning. Block number 17 was mined on Jan
           | 10th 2009. At 50 bitcoins per block we are talking at most
           | 850 bitcoin or so mined "in private" before launching
           | bitcoin.
        
             | dpedu wrote:
             | https://whale-alert.medium.com/the-satoshi-
             | fortune-e49cf73f9...
        
               | rssoconnor wrote:
               | Even if that analysis were accurate, that isn't mining
               | "in private" before "publicly launching" as you claimed.
        
               | dpedu wrote:
               | That's fair, my memory was incorrect. However, I don't
               | think that makes a difference w.r.t. calling the coin
               | premined.
        
           | leppr wrote:
           | As far as we know Satoshi himself was rather selfless. The
           | Patoshi[1] miner suggests he actually calibrated his own
           | mining to foster the network's health and decentralization in
           | its early days, in detriment of his own output.
           | 
           | I'm absolutely on board to criticize the amazing amount of
           | grifters in crypto. But letting this corrupt the image of the
           | few people like Satoshi (and Vitalik Buterin and many others
           | basically absent from the media), who willingly strayed from
           | the opportunity to be among the richest individuals in the
           | world, in order to instead focus on building something they
           | think can better humanity, is not right. You don't need to
           | look far to find the real grifters, they're showing ads in US
           | media and paying millions to celebrities for product
           | endorsements right now.
           | 
           | [1]: https://bitslog.com/2020/06/22/a-new-mystery-in-patoshi-
           | time...
        
           | toomim wrote:
           | And he never spent them. It's the most selfless act I've
           | witnessed in my life.
        
             | flipbrad wrote:
             | Might not be especially hard to use them as collateral for
             | a loan, though. Live like a king and then eventually sell
             | them, repaying the loan from the (now rather generous)
             | proceeds.
        
               | rfd4sgmk8u wrote:
               | This absolutely is not the case, as any collateralize
               | loans require you to transfer custody to a 3rd party
               | making the loan.
               | 
               | Otherwise, you could just steal the coins straight after
               | handing over the private keys. And even if that wasn't
               | the case, the loaner will want exclusive control and move
               | them to another key they control anyway.
               | 
               | If it was a loan, you would have blockchain records of
               | movement of Satoshi coins. This can be proven not to be
               | the case, and so we can be quite confident there was no
               | loans to Satoshi.
        
             | mdoms wrote:
             | Because he's dead.
        
       | 6gvONxR4sf7o wrote:
       | > the insistence that cryptocurrency is a boon for all of
       | humanity quickly collapses into the assertion that it will become
       | one
       | 
       | This one annoys me in tech discussions all across the board.
       | Someone justifies some piece of tech as good, others give counter
       | evidence, and then the proponents say that it doesn't actually
       | matter because it will be true _some day._ Social media is
       | healthier than other media (well, it could be). Self driving cars
       | are safer (well, they will be). Crypto is better for the people
       | (well, it could be). Or my favorite, seen this morning in another
       | thread: bitcoin isn 't bad for the environment (well, it could be
       | better, therefore it's fine).
        
       | cratermoon wrote:
       | How long before Amazon starts paying their workers in a
       | BezosBucks cryptocurrency that can only be redeemed at the Amazon
       | company store? https://jacobinmag.com/2021/07/amazon-warehouse-
       | communities-...
        
         | Nasrudith wrote:
         | Good god what is with their obsession with scrip? Scrip
         | payments have already been banned and it wasn't even a winning
         | strategy for its users! You might as well raise concerns about
         | the Kaiser going militant or the Shogun holding a coup in
         | Japan.
         | 
         | I am seriously sick of people writing execrable impromptu
         | science fiction and presenting it as reality.
        
         | boh wrote:
         | https://youtu.be/CPW3YikDwEM
        
       | useful wrote:
       | Selling a future that hasn't happened is fine. If you saw the
       | initial version of the internet or a cell phone you'd likely
       | dismiss them.
       | 
       | Crypto is rebuilding the same things that already exist but that
       | process has the chance to remove people from a system who used to
       | provide services and replace them with an algorithm. Most people
       | would dimiss a NFT but some of the use cases could be great. If
       | most laws/rules were enforced in code for business transactions
       | would you need to spend as much money on a lawyer in your
       | lifetime? That's the future of money and it's exciting. Will that
       | happen? Maybe not, which is why it is speculative.
       | 
       | The problem is that a large majority of people who are
       | speculative and most crypto assets are highly centralized, which
       | defeat the point of decentralization to remove a few large actors
       | from having control. Plus the scams and idiots in the space that
       | income without labor always attracts.
        
         | rchaud wrote:
         | This is all pie-in-the-sky theory that has already been used
         | unsuccessfully to exhort the merits of cryptocurrency. Where is
         | the evidence of any of these benefits in practice? Crypto has
         | been around for over a decade, yet its only uses post-Silk Road
         | have been for ransomware and NFTs.
         | 
         | The Internet changed how we communicated and shopped in well
         | under 10 years, and in an era when 56kbps modems were a luxury,
         | and nobody had a computer in their pocket. There is no
         | comparison between the two, much as crypto-maximalists would
         | like for there to be.
        
           | Trasmatta wrote:
           | Cryptocurrency has even become _less_ useful as time has gone
           | on. The utility of the internet and smartphones was
           | immediately apparent. Cryptocurrency fans are always reaching
           | for that analogy, but it 's fundamentally flawed.
        
           | useful wrote:
           | I'd argue that BBS and compuserve/aol were in the 80s. It
           | took 30 years before everyone had a computer in their pocket
           | and Amazon took off.
           | 
           | A debit card is similar to crypto. Is a debit card any
           | different than cash for an end user? Did it cause big changes
           | in banking? I can show you my account balance with a debit
           | card. It may convince you I have the assets to buy whatever
           | you are selling. I can bring a debit card to another country
           | and exchange it to local currency. The merchant is passing on
           | the 2-5% fee to you so that you can use a debit card. There
           | is a huge organization of people behind that debit card.
        
             | rchaud wrote:
             | Amazon took off well before the smartphone era. Bezos was
             | Time Magazine's Person of the Year in 1999.
             | 
             | I don't understand what you mean re: debit cards. Is it
             | that the transaction processing fee is passed on to the
             | customer? That is already well understood. The issue is
             | that crypto is nowhere near to matching VISA/MC's per-
             | transaction cost.
        
               | useful wrote:
               | My point was that you need less people for a transaction
               | to happen.
               | 
               | The cost will go down over time.
        
               | rchaud wrote:
               | > The cost will go down over time.
               | 
               | And the number of transactions will increase over time,
               | adding to the cost. So what does it net out to?
               | 
               | It doesn't look favourable when the bloated payment
               | behemoth can get by charging 2-5%, but crypto transfer
               | fees end up being significantly higher, and prone to
               | surge pricing if too many people are buying Cryptokitties
               | at the same time.
        
               | useful wrote:
               | The prices on layer 2 like lightning and polygon/matic
               | are pretty reasonable right now. I don't think its far
               | fetched to say that the network capacity will increase
               | with adoption.
               | 
               | I only have a hobby interest in crypto, but even etherum
               | is planning on having side chains that operate
               | independantly.
               | 
               | To me, crypto's biggest risk is a lack of
               | decentralization. The bitcoin network basically votes to
               | adopt bitcoin changes but the etherum developers can
               | force changes on the etherum network. Whats the point of
               | proof of stake if most of the coins are owned by the
               | original developers? Ala Chia. Why not just run a sql
               | database if 51% of the network is owned by a
               | person/entity or a few. Bitcoin is pretty decentralized
               | in ownership unlike every other coin attempting to be a
               | currency but pooling in bitcoin has put too much
               | hashpower into the hands of a few.
               | 
               | Without wide adoption, crypto is not decentralized. There
               | is little point if the various networks retain their
               | oligopoly.
        
         | mypastself wrote:
         | Wouldn't most laws need a real-world source of truth and
         | arbitration external to the network? It seems like a lot of
         | work just to arrive at what is essentially centralization once
         | again.
         | 
         | And the people who might have initially dismissed the early
         | internet would likely have not understood it. A lot of NFT
         | detractors are plenty tech-savvy.
        
           | useful wrote:
           | Any time you deal with physicals things? Yep.
           | 
           | I wouldn't need a lawyer if a digital contract enforced a 2%
           | commission paid to a wallet address.
           | 
           | I would need a lawyer if all transactions weren't paid into
           | that wallet address.
           | 
           | If I use software to play a song and it uses an NFT to make a
           | payment to the owner. I theoretically cut out a lot of
           | middlemen whos value is making sure the correct people are
           | paid. There are tons of edge cases where anyone can argue
           | that this wouldn't work but I think that the system only has
           | to meet a bar where it is potentially better than what we
           | have now.
        
         | tomp wrote:
         | You mainly spend money on lawyers when things go wrong (or in
         | anticipation of things going wrong).
         | 
         | In crypto, when things go wrong they just fork the blockchain.
         | YOLO
        
       | sneak wrote:
       | We are currently transitioning from the part where they laugh at
       | you, to the part where they fight you.
        
         | ttyprintk wrote:
         | The article mentions launderers and dirty tricksters, who we
         | haven't collectively stopped laughing at, yet to effectively
         | fight.
        
         | zaphar wrote:
         | Nah, I'm still in the bemused stage. They may actually succeed
         | in making crypto a normal thing adopted by society. At which
         | point I'll transition to my usual next stage. Being resigned to
         | yet another bad technology solution to what is fundamentally a
         | people problem.
        
       | Ansil849 wrote:
       | > Cryptocurrency is something people tell lies about in hopes of
       | getting richer
       | 
       | An amazingly succinct title. Absolutely true. Whenever someone
       | hypes up cryptocurrency, it is almost always for their personal
       | gain, directly or indirectly.
        
         | bitcoin_anon wrote:
         | https://bitcoin.org/bitcoin.pdf
         | 
         | What was Satoshi lying about? What has he done with his riches?
         | 
         | > The Times 03/Jan/2009 Chancellor on brink of second bailout
         | for banks
         | 
         | This is not the motivation of someone trying to get richer.
         | It's someone who cares deeply about humanity.
         | 
         | Is it so hard to believe that there are others in the space
         | with similar motivations?
        
           | SwimSwimHungry wrote:
           | Who cares what Satoshi said back then. What Bitcoin has
           | become _now_ is a complete sham with early adopters stoking
           | the flames of FOMO to get rich quick at the expense of
           | everyone else.
           | 
           | I wish cryptocurrency fans would stop smelling their own
           | farts for once and realize they aren't the absolute geniuses
           | in finance that they claim to be. It's arrogant.
        
             | rfd4sgmk8u wrote:
             | And I wish cryptocurrency detractors would stop lick state
             | boot, calling for bans and throwing out stupid arguments
             | like energy usage.
             | 
             | While many in the coin space are arrogant from ignorance, I
             | would argue that the detractors are universally arrogant
             | with their ignorance.
             | 
             | Bitcoin people are trying to decentralize the world. Make
             | the powerful less powerful. Free humanity from debt
             | economies, inflation, weak fiscal policy and the slow theft
             | of fruits of your labor.
             | 
             | AntiBitcoin people are trying to centralize the world.
             | Empower the already powerful. Stamp that boot onto the face
             | of humanity forever. Ensure that the state can always rob
             | its people of their savings and lifes work, and force
             | compliance with weak fiscal policy, negative interest
             | rates.
             | 
             | I think I know which is on the correct side of history.
        
               | imtringued wrote:
               | >Bitcoin people are trying to decentralize the world.
               | Make the powerful less powerful. Free humanity from debt
               | economies, inflation, weak fiscal policy and the slow
               | theft of fruits of your labor.
               | 
               | I have looked at lots of potential money systems and I'd
               | say most cryptocurrencies fall into the usual deflation
               | speculation death that lots of government currencies
               | (especially during the gold standard) have fallen victim
               | to.
               | 
               | In fact, most currencies are heading down that route. The
               | euro and yen are prime examples. It's kind of funny how
               | people shout about inflation the most when it's been
               | super low for a long time. They complain about inflation
               | when their real problem is that they have no bargaining
               | power because inflation target policies are also supposed
               | to inflate wages. Bitcoin also doesn't solve the rentier
               | problem with land. If your purchasing power magically
               | increases with Bitcoin then the land owner just gets more
               | of your money.
               | 
               | I am really tired of the anti debt crap. The only reason
               | people would be against debt is that there are crazy
               | people who are out of touch with reality who insist on
               | permanent positive interest rates. Just think about the
               | absurdity of hating debt when interest rates are
               | negative. It's simply illogical.
               | 
               | >AntiBitcoin people are trying to centralize the world.
               | Empower the already powerful.
               | 
               | Deflation is empowering the rich. That's what positive
               | real interest rates do. If you have a lot of Bitcoin and
               | Bitcoin goes up in value then you get more gains than a
               | poor person with very few Bitcoin. Inflation and negative
               | interest rates hurt those who are rich the most and hurt
               | those who have very little the least.
               | 
               | >Stamp that boot onto the face of humanity forever.
               | 
               | Is this supposed to be some kind of joke?
               | 
               | >Ensure that the state can always rob its people of their
               | savings and lifes work, and force compliance with weak
               | fiscal policy, negative interest rates.
               | 
               | Savings are literally just a reduction in demand for
               | labor. Reducing your demand for labor doesn't make anyone
               | wealthier by itself. It's only because there are other
               | people who want that labor that saving even earns a
               | return. You are basically paid to reduce your demand so
               | that other, more productive people get to have the scarce
               | labor. If you reduce your demand for labor and nobody
               | ends up demanding the freed up labor then you basically
               | worked for nothing. The entire point of inflation and
               | negative interest rates are to get this fact into your
               | damn head. You are piling up a bunch of potatoes that
               | spoil before you eat them. Stop that.
        
               | rfd4sgmk8u wrote:
               | I fundamentally disagree with everything you have
               | written, from definitions, to target of harms, to
               | outcomes. I think your philosophy is dangerous and
               | harmful.
               | 
               | So, No, I will not stop that. Thank Satoshi that I don't
               | need to.
               | 
               | I choose to opt of your authoritarian and paternalistic
               | philosophies. I will always convert fruits of my labor
               | into hard money, where you cannot hurt me.
               | 
               | You can't stop us (all).
        
         | esalman wrote:
         | This statement is actually quite similar to what I used to hear
         | people say at a stock technical analysis class. In speculative
         | financial markets, one person's loss is another person's gain.
         | So almost no one is going to give you any advice that will help
         | you.. more likely they're helping themselves by misdirecting
         | you.
        
         | aceazzameen wrote:
         | Absolutely. And with anything that involves greed and riches.
        
       | xutopia wrote:
       | Not going to say that no one lies about it but I had to transfer
       | a sizable amount of money between two banks at about the same
       | time I did a transaction from my home with BTC that took all but
       | 20 minutes without the need for fax machines.
       | 
       | There are advantages to cryptocurrencies and one can very much
       | want a future where currencies they would use isn't hampered by
       | government.
        
         | elzbardico wrote:
         | Transferring huge amounts of money between accounts, specially
         | when you own both is not a problem unless you live in the US.
         | For most of Europe, Asia and even latin america this problem
         | has been solved almost two decades ago. Around the same time
         | the banks on those countries retired their fax machines.
        
           | xutopia wrote:
           | I live in Canada and had bank accounts in France as well
           | where anything above 5 figures is hard to do across
           | institutions. I was able to move 50k in 10 minutes in BTC
           | when 25k CAD was tough to send and required days of wait time
           | despite a certified cheque I paid extra for.
        
       | [deleted]
        
       | superkuh wrote:
       | > Neither, strictly speaking, is anything that a normal person
       | would really need to know or care about unless that normal person
       | is the victim of a ransomware scam, or wants to buy drugs on the
       | internet...
       | 
       | Ah right... because normal people never donate to journalists.
       | Never pay for online subscriptions, never buy hardware off
       | newegg. Just because the author has no exerience using
       | cryptocurrency he assumes everyone is like him and repeats the
       | FUD.
        
         | ahoy wrote:
         | Normal people do not have, use, or understand cryptocurrencies.
         | If you think they do all that means is you live in a very
         | specific bubble.
        
         | EliRivers wrote:
         | Normal people do all that with money and credit cards and debit
         | cards and bank transfers, which works faster and better and are
         | much easier to use and much more convenient. The existing
         | framework is a much better way to do all the things you
         | mentioned. What do you have for which the existing framework
         | _isn 't_ better, and how often do "normal" people do that?
        
         | pjc50 wrote:
         | > never donate to journalists
         | 
         | Not really, unless you count patreon.
         | 
         | > Never pay for online subscriptions, never buy hardware off
         | newegg
         | 
         | Credit cards or paypal. Both of which have a better refund
         | system.
        
       | dcolkitt wrote:
       | It's pretty clear from the article that the author thinks markets
       | are intrinsically bad, most entrepreneurs and founders are
       | generally bad, and that economic activity is generally better
       | coordinated and controlled by the state. And it's pretty clear
       | from the upvotes and comments that many here agree with this
       | viewpoint.
       | 
       | And that's fine. That's a completely defensible world view, that
       | many smarter than me have held throughout history. But for
       | heavens sake why are you spending your time on a forum about
       | celebrating startups hosted by a venture capitalist?
        
         | Synaesthesia wrote:
         | It's only "bad" if you believe in democracy and equality.
         | Markets are great for those who benefit from them. I just don't
         | see cryptos benefiting the majority of mankind. They pretty
         | much reinforce or retain existing power structures.
        
       | mettamage wrote:
       | I feel the IPFS blog post gave me a glimpse of how blockchain can
       | be cool. In certain cases, the need for decentralization is so
       | strong that it makes sense to build a blockchain system for it
       | (or other secure P2P network thingy).
       | 
       | For example, authentication/identity using blockchain technology
       | seems interesting to me.
       | 
       | [1] https://blog.ipfs.io/decentralizing-the-internet-s-root/
        
         | cryptica wrote:
         | Authentication using the blockchain makes a great AI-resistant
         | alternative to signups with captcha. The same account could be
         | used by multiple independent services and this removes the need
         | for a signup process altogether. It also removes the need for
         | password management since you can use a single
         | account/passphrase to log into various services without
         | revealing your passphrase to any of these services; you can
         | simply sign a message to prove to any service that you control
         | an account (and know the passphrase) without actually revealing
         | the passphrase to any of the third party services.
        
           | mminer237 wrote:
           | Wouldn't that make it impossible to change your password if
           | compromised?
        
             | krageon wrote:
             | This post is talking about what is essentially a signing
             | setup. If your private key is stolen in such a setup, the
             | person who steals the key becomes you.
             | 
             | Essentially yes :)
        
             | cryptica wrote:
             | Yes but it also makes it a LOT less likely that your
             | passphrase would be compromised because it is never sent to
             | any service over the wire; with blockchain signatures, your
             | passphrase never needs to leave your own machine. So the
             | service providers you log into never have any opportunity
             | to even see your passphrase; they only see your signatures
             | which proves that you know the passphrase. You could use a
             | different program for signing login messages so that you
             | don't even need to insert your passphrase inside third
             | party UIs. You'd use one trusted program of your choice to
             | handle logins for all the different services; just copy
             | paste the signature into the different services.
             | 
             | There are some stateful blockchains which allow changing
             | the passphrase but of course there is no 'forgot my
             | password' feature; a malicious actor who manages to steal
             | your passphrase could potentially use it to change your
             | passphrase and lock you out of your account but at least
             | you don't have to live in doubt if you suspect that your
             | passphrase was compromised.
             | 
             | The idea behind the blockchain auth approach is that you
             | would only need one passphrase for all services but you
             | would have to secure it carefully since losing it would
             | cause you to be locked out of all services associated with
             | that account.
        
               | marcus_holmes wrote:
               | If someone does steal your identity in this way, there's
               | no way of getting it back. You can't appeal to any
               | authority, because there's no authority to appeal to in a
               | decentralised system. You literally have to start again
               | and create a new identity.
               | 
               | So you're gambling bigger: less likely to have your
               | identity stolen, but complete loss of everything to do
               | with that identity, with no recourse, if it is stolen.
               | 
               | I'm not sure I like those odds.
        
               | kibbleble wrote:
               | It can't be much worse than relatives claiming you as
               | dead so they can have your house, and then every
               | government system denies you any service because you're
               | "dead"
        
             | hervature wrote:
             | As the saying goes: not your keys not your wallet. This is
             | the fundamental issue with the anonymity. You can prove you
             | have access, but you cannot prove it belongs to you. The
             | centralized/decentralized conversation often doesn't touch
             | this aspect. When it comes to ownership, at some level,
             | there needs to be a central power to enforce it as
             | ownership is in itself a vague concept.
        
               | hanniabu wrote:
               | The path forward are contact wallets and dead man
               | switches
        
               | hervature wrote:
               | Ah, so then possession becomes ten-tenths of the law. I'm
               | not sure this is a system that we want. A system that
               | allows for every day trading (buying something at a
               | store) that requires a second piece of equipment to
               | verify your identity that, if someone steals, there is no
               | means of recourse. Sure, multiple wallets, something
               | something, but this just sounds like a nightmare of
               | record keeping where you offload a single point of
               | failure to somewhere else (password manager to remember
               | all your wallets).
        
               | swlkr wrote:
               | You could store that second piece of equipment on your
               | person, like an ultraviolet invisible ink qr code tattoo
               | on your right hand or your forehead since no one can see
               | it except under a black light.
        
           | UncleMeat wrote:
           | > The same account could be used by multiple independent
           | services and this removes the need for a signup process
           | altogether.
           | 
           | This is only marginally better than SSO with
           | Google/Apple/Facebook/whatever. It dodges the "Google closed
           | my account" problem, which is a meaningful improvement. But
           | I'm not fully certain why you need the public key to be part
           | of a blockchain for this to work. Couldn't you just publish
           | your public key identity on any number of considerably less
           | wasteful systems? As far as I can tell, the only advantage
           | here is the mapping between the name "UncleMeat" and my
           | public key would be able to be reused across services... but
           | in so many cases I don't want my identity to be consistent
           | across services.
        
             | cryptica wrote:
             | - Resistant to centralized censorship (as you pointed out)
             | 
             | - It allows you to use the same passphrase for all services
             | without compromising security since your passphrase never
             | needs to leave your own machine; it is never sent over the
             | wire. You just send signatures to different services.
             | 
             | - The cost associated with purchasing tokens needed to
             | initialize an account on the blockchain would serve as a
             | spam prevention mechanism; an alternative to SIM cards
             | which most centralized services rely on today as a cost
             | barrier to limit the creation of spam accounts.
             | 
             | - Superior integration potential between different
             | services/systems provided by different companies/groups
             | since they can all refer to the exact same account on the
             | same blockchain and provide new ways to unify data between
             | the different services.
        
               | noctune wrote:
               | > - The cost associated with purchasing tokens needed to
               | initialize an account on the blockchain would serve as a
               | spam prevention mechanism; an alternative to SIM cards
               | which most centralized services rely on today as a cost
               | barrier to limit the creation of spam accounts.
               | 
               | Doesn't seem like that to me. If I get banned I can just
               | move my cash to another account and start again, and
               | assuming multiple services does this I can amortize the
               | cost over all of them.
               | 
               | The rest seems to me like something mTLS could solve
               | better.
        
               | UncleMeat wrote:
               | > Resistant to centralized censorship (as you pointed
               | out)
               | 
               | I'd wager that most people don't care about this much,
               | though it is real. Still, this can be achieved with
               | signature-based authentication that doesn't require the
               | tremendous waste of BTC. Just... tell the service your
               | public key and sign a message when you sign up. Your key
               | pair doesn't need to be associated with some distributed
               | system for that to work. This has been around for decades
               | and not exactly caught on.
               | 
               | > It allows you to use the same passphrase for all
               | services without compromising security since your
               | passphrase never needs to leave your own machine; it is
               | never sent over the wire. You just send signatures to
               | different services.
               | 
               | This is true for all signature-based authentication,
               | which does not necessitate a blockchain.
               | 
               | > The cost associated with purchasing tokens needed to
               | initialize an account on the blockchain would serve as a
               | spam prevention mechanism; an alternative to SIM cards
               | which most centralized services rely on today to limit
               | the creation of spam accounts.
               | 
               | This sounds like an anti-feature to me. Especially since
               | it'd be foolish for a service to _only_ support
               | authentication via a blockchain. Imagine telling my
               | grandmother that she needed to buy some btc in order to
               | sign up for the service that hosted my wedding photos.
        
               | cryptica wrote:
               | >> This sounds like an anti-feature to me. Especially
               | since it'd be foolish for a service to only support
               | authentication via a blockchain. Imagine telling my
               | grandmother that she needed to buy some btc in order to
               | sign up for the service that hosted my wedding photos.
               | 
               | This is different because your grandma would have to buy
               | the tokens once and signup once and she will have access
               | not only to the 'wedding photo service' but a large
               | number of other services. It's more like paying a small
               | amount of money to get access to an ecosystem of
               | services. Like how people pay money to buy an iPhone and
               | this gives them access to the Apple App Store and all the
               | apps therein.
               | 
               | There will also be network effects associated with the
               | blockchain price going up with adoption. People who
               | signed up early to the right blockchains will have
               | priority access to certain software ecosystems and
               | exclusive services which are only accessible to the
               | richest among them (for example).
        
               | WJW wrote:
               | > People who signed up early to the right blockchains
               | will have priority access to certain software ecosystems
               | and exclusive services which are only accessible to the
               | richest among them (for example).
               | 
               | This seems even more like an anti-feature TBH. Imagine
               | not being allowed to use the future equivalent of basic
               | services because you were not "early enough". Sorry
               | grandma, no wedding photos for you because you didn't buy
               | these specific three coins out of the thousands started
               | every month.
        
               | UncleMeat wrote:
               | > People who signed up early to the right blockchains
               | will have priority access to certain software ecosystems
               | and exclusive services which are only accessible to the
               | richest among them (for example).
               | 
               | I cannot possibly imagine a world where services will
               | choose to only permit authentication via some expensive
               | blockchain such that they deny themselves access to
               | markets outside of the global rich.
               | 
               | And telling my grandma "don't worry, the coins you don't
               | understand will go up in price" is not going to help.
               | 
               | This is the core question: why is signature-based
               | authentication using public keys associated with BTC
               | wallets superior to signature-based authentication using
               | public keys not associated with BTC wallets? As far as I
               | can tell, the only benefit here is that now my identity
               | on my photo sharing service can be linked to my identity
               | on my wine rating service. Why do I want that?
        
         | wyager wrote:
         | The only two known usage of blockchain that actually seem to
         | offer a clear advantage over some other strategy (running the
         | thing centralized, not having coordination at all, etc) are A)
         | solving double spend (a la Bitcoin) B) solving zooko's triangle
         | (a la Namecoin, or the clone you mentioned from ipfs).
         | 
         | Identity on blockchain beyond resolving zooko's triangle (I.e.
         | stably mapping pseudonyms to pubkeys) typically does not offer
         | an advantage over (partially) centralized identity providers.
         | E.g. putting anything related to government ID on a blockchain
         | is pointless because you might as well have the ID issuer run a
         | central or federated service.
        
           | cryptica wrote:
           | I think this is an accurate assessment but I think
           | authentication and account management should be seen as
           | separate from 'identity'. Authentication can be useful
           | without being associated with a real-world identity; for
           | example, it can be useful for spam-prevention as an
           | alternative to signups with captcha. You could theoretically
           | log into multiple services which you don't trust by signing
           | messages using your private key without revealing your
           | passphrase to any of those services.
        
           | karpierz wrote:
           | Why does Bitcoin have a clear advantage in solving double
           | spend over a centralized solution?
        
             | mcherm wrote:
             | It does not.
             | 
             | Bitcoin (and it's successors) are a decentralized solution
             | to the double spend problem. If "decentralized" is a
             | requirement, then a cryptocurrency can be an excellent
             | solution. Other known solutions (like "just trust
             | everyone") don't scale well (an understatement!).
             | 
             | If "decentralized" is not a requirement then there are
             | other solutions to the double-spend problem.
        
               | mdoms wrote:
               | So it's your contention that the current traditional
               | financial system "don't scale well (an understatement!)"?
        
             | snarf21 wrote:
             | Because the trust is distributed. One single person can't
             | cause the entire system to break down or steal all them
             | money. With blockchain coins, the incentives are aligned.
             | The weird thing that happened with BTC that I don't think
             | Satoshi could forsee is that the more valuable it got, the
             | less usable it got. This is one of the unsolved issues: how
             | to create decentralized consensus very very quickly that
             | can't also be attacked via a PoW that is too easy.
        
               | ironSkillet wrote:
               | Do you know of any lines of research that are out to
               | prove mathematically that it is impossible to have these
               | desirable characteristics simultaneously? I.e. any
               | improvement in consensus efficiency necessarily gives up
               | some amount of decentralization, appropriately defined.
        
               | fidesomnes wrote:
               | translation "I demand this random HN user show me how it
               | is this is done because I am not going to use a search
               | engine to find it out for myself."
        
               | ItsMonkk wrote:
               | This is the sort of thing that really needs to be
               | questioned.
               | 
               | 1. How much security do we need for this transaction?
               | 
               | 2. For this block of transactions?
               | 
               | 3. Can we have varying levels of security?
               | 
               | What we are ultimately trying to know is, is it
               | profitable to double spend? If the answer is yes, then no
               | one should be transacting, and anything they do transact
               | is a gamble. If the answer is no, there's much less risk,
               | and the farther the answer is no, the safer the
               | transaction.
               | 
               | But we likely don't need as much security as we do now.
               | In fact, it's very easy to handle at a user level.
               | 
               | A. Put the transaction on the blockchain.
               | 
               | B. Wait for additional blocks.
               | 
               | C. If your transaction is huge, wait for more additional
               | blocks. Wait a week, a month. This is an important
               | transaction. When the blockchain has not reverted for
               | such a long time, finally do the transaction in the real
               | world.
               | 
               | If you are transacting with yourself, you don't need any
               | security at all. If you are transacting with a bar and
               | the bar knows you, much like a tab, you don't need much
               | security. If you are transacting with an anonymous
               | person, you want high security.
               | 
               | So security is currently handled on a blockchain by
               | blockchain basis, where it should be a transaction by
               | transaction basis. What if you can't wait a month? Then
               | you should put heavy fees on that transaction and it
               | should be put in with other higher fee transactions.
               | 
               | 4. How does security change with transaction size? Does
               | it make sense to have limits?
               | 
               | 5. How does security change with total transaction block
               | size? Does it make sense to have limits?
               | 
               | 6. When the coin price goes up, how does that change
               | these factors?
               | 
               | 7. When the mining reward in coins drops, how does that
               | affect security?
               | 
               | 8. When Bitcoin, in 100 years, moves to 100% transaction
               | fee system, what happens to security? What would the
               | transactions fees look like?
               | 
               | 9. In 50 years when the block reward has been halved 5
               | times, either the price of Bitcoin moves to $1 million,
               | or the security drops. Is that okay?
        
               | mminer237 wrote:
               | I don't trust the collective anonymous users of Bitcoin
               | more than I trust my bank and the court system though.
               | 
               | If someone hacks into my account, my bank will likely
               | reimburse me for any losses. There are controls in place
               | to stop them from stealing it al. If someone just
               | transferred it to their own account, I could use the
               | courts to get it back. If I use a credit card to pay a
               | scam, I can do a charge-back.
               | 
               | With cryptocurrencies, it's just "bye money". They're not
               | going to fork for you. There's no logic to stop people in
               | Russia transferring my entire account. It's too hard to
               | find criminals to get any relief. It's just your fault
               | for using cryptocurrencies and not having 100% perfect
               | security.
               | 
               | Not to mention, the chance of my bank stealing all my
               | money is nil. They'd be sued and arrested, and the FDIC
               | would reimburse me anyway.
        
               | rhn_mk1 wrote:
               | I don't think this is the kind of "trust" that is
               | relevant in the prevention of double-spending.
        
               | shawnz wrote:
               | > There are controls in place to stop them from stealing
               | it al. If someone just transferred it to their own
               | account, I could use the courts to get it back.
               | 
               | What if it's taken thorough wrongful civil forfeiture?
               | Will you be able to afford to navigate the courts to get
               | your assets back after they've been seized?
        
               | WJW wrote:
               | Not always, but wrongful civil forfeiture is just one of
               | many possible ways to steal. In other cases using the
               | court system will be possible. With bitcoin, it is never
               | possible.
        
               | shawnz wrote:
               | So if you think the risk of permanently losing your
               | assets via legal channels is, let's say, 99-to-1 compared
               | to the risk of losing your assets to cryptocurrency
               | attacks, then wouldn't it make sense to hold 99% of your
               | assets in the bank and 1% in cryptocurrencies?
               | 
               | Cryptocurrencies don't have to replace all existing
               | financial instruments to be a useful hedge. They can just
               | be one tool of many to diversify your risk profile.
               | 
               | Especially consider that for people living outside the
               | developed world, the risk of having your assets stolen
               | through legal channels is going to be much higher.
        
               | WJW wrote:
               | If you think it is indeed 99-to-1, then perhaps. My
               | perception of the trustworthiness of most crypto projects
               | is certainly much lower (see the endless parade of crypto
               | horror stories on
               | https://www.reddit.com/r/SorryForYourLoss/), so
               | personally I would think the odds of a crypto project
               | going under or just simply losing my wallet keys is way
               | higher than the chance my bank or my government will
               | steal my money or my stocks or whatever. Then again, I do
               | live in western Europe so YMMV if you live in Venezuela
               | or someplace like that.
        
               | superflit2 wrote:
               | Well on the 2008 Crash your ""acount"" was robbed and if
               | you live in US you did not get your money back.
               | 
               | You had to cover the "too big to fail" system.
               | 
               | On btc no.
        
               | gota wrote:
               | > One single person can't cause the entire system to
               | break down or steal all them money.
               | 
               | Funny - I have never seen someone in the traditional
               | financing system do that and not get caught. Closest
               | things were ponzi schemes like Madoff (and he did get
               | caught)
               | 
               | I have, however, heard of dozens of exactly this incident
               | happening with cryptocoin exchanges (wallets, services,
               | the most general term for all combined slipped my mind)
        
             | wyager wrote:
             | If you're fine with all the downsides of trusting you bank,
             | the bank's central bank and currency issued, the bank's
             | government, etc then that obviously makes Bitcoin less
             | appealing for you. Remaining upside includes reduced
             | friction for things like international settlement. Don't
             | tell me that international settlement is easy with
             | traditional banks - I am a financial system power user and
             | it is not.
        
             | krageon wrote:
             | > centralized
             | 
             | If you want to trust a conglomerate of folks who have a
             | vested interest in keeping you small and poor to solve your
             | problems, then there is no advantage. If you do not, then
             | the advantage is exactly that it is not centralised.
        
               | acomms wrote:
               | Why are you so convinced that cryptocurrency solves the
               | "outside forces much larger and more powerful than me
               | have influence over the system" problem? It exchanged a
               | solution to some problems for a new set of problems to be
               | solved.
        
               | krageon wrote:
               | You are questioning what I'm saying by telling me
               | something incredibly vague. I'm afraid I just don't know
               | what to do with your question.
        
               | secondaryacct wrote:
               | I can rephrase it: why do you think it impossible for
               | vastly resourceful entities to acquire so much power they
               | can control the decentralized system - in a softer way,
               | probably but still.
               | 
               | Imagine a world tmr where bitcoin is everywhere. You ll
               | have mining conglomerates in the cheapest electricity
               | providers working as cartels to help each other and
               | protect their interests (so can envision centralizing a
               | blacklist of addresses they dislike, coordination on
               | software version etc), de facto cartels of whales (like
               | todays "billionaires" people describe as a collaborative
               | force), and large lenders who concentrate capital and
               | therefore still can buy out whatever they want (today
               | called banks).
               | 
               | How do you think the blockchain solve any of that?
        
               | imtringued wrote:
               | What keeps people small and poor is the insistence that
               | people should save in monetary terms.
               | 
               | It's not rocket science. When you keep your wealth in
               | monetary terms, you don't get to have it in physical
               | terms. Money represents how much real wealth you could
               | have if you spent it. It's deferred consumption. There is
               | no real wealth in something that didn't happen.
        
       | xtat wrote:
       | What this article does is let me take a mental not to take
       | anything too seriously from this source that pops up in the
       | future.
        
       | 99_00 wrote:
       | New technology often goes through a phase of wild speculation,
       | touting by liars, and impractical business models that people
       | throw money because they are afraid of missing out. The bubble
       | eventually pops. But people keep improving the tech and it
       | becomes practical and eats the world.
       | 
       | First there was Railroad Mania
       | https://en.wikipedia.org/wiki/Railway_Mania
       | 
       | After the initial bubble, rail roads changed the world
       | 
       | First there was the dot-com bubble, and then internet changed the
       | world.
       | 
       | Both sides can be right in this debate. Crypto can be a bubble
       | and a scam and it can also change the world.
        
         | cromulent wrote:
         | This is true. Although the examples you give show survivorship
         | bias. There are many new things, fads and scams that simply
         | fade away.
         | 
         | I don't think that Bitcoin will be a thing in 100 years, but
         | blockchain will still exist in some useful format. Not in the
         | way that it is pushed by some of its proponents though.
        
       | Geee wrote:
       | Bitcoin has nothing to do with all these scams like NFTs and
       | "internet computers" like Ethereum, which are pushed by tech
       | gurus, influencers and marketers. It's time to stop conflating
       | these under the same umbrella. Bitcoiners are not the same people
       | who push these useless things.
        
         | DanHulton wrote:
         | Absolutely correct. Bitcoin isn't the domain of NFT grifters,
         | it's the domain of ransomware hostage-takers.
         | 
         | We need to be accurate when discussing the various scams
         | proposed.
        
           | Geee wrote:
           | That's not even remotely true.
        
             | SwimSwimHungry wrote:
             | What do you mean? Of course it is. How else has ransomware
             | been able to thrive as of late?
             | 
             | The sooner governments abolish fiat to cryptocurrency
             | exchanges and make such transactions illegal, the sooner
             | this clown car of sadness will come to an end.
             | 
             | As much as I'm not a fan of China and the CCP, they are
             | making some good moves in this department recently to
             | eliminate unneeded capital flight. The US should follow in
             | their steps here.
        
       | roenxi wrote:
       | Someone sees cryptocurrency as exactly what it is, and at some
       | point in the future we will know who.
       | 
       | But in the interim, lets not compare crypto to some utopian world
       | that doesn't actually exist. In the current world which we
       | inhabit, the many major currencies are either controlled or
       | heavily influenced by people who:
       | 
       | 1) Believe prices constantly rising is good for poor people.
       | 
       | 2) Advocate that governments can spend potentially an infinite
       | amount without consequences because they control a printing
       | press. And looking at the actions of, e.g. the US government, it
       | is easy to suspect that the people who understand the nuance
       | there aren't the ones in control of the money supply.
       | 
       | In such an environment, the crypto folk are reasonable. Even if
       | in a perfect world they would clearly all be scammers.
        
         | ttyprintk wrote:
         | I wish the downvotes would explain how they plan to solve these
         | problems, or otherwise concede the argument of the linked
         | article.
        
           | roenxi wrote:
           | I wouldn't normally comment on downvotes, but the torrent on
           | this post caught me by surprise. Probably they just disagree.
        
         | ARandumGuy wrote:
         | > 1) Believe prices constantly rising is good for poor people.
         | 
         | I mean, inflation actually does benefit poor people, _when
         | wages and prices rise at the same rate._ Devaluing savings
         | accounts isn 't a big deal if you don't have any savings in the
         | first place. Inflation also makes debt less valuable over time,
         | making it gradually easier to pay off.
         | 
         | The real problem is that (in the US) wages have been stagnant
         | for decades. That's not an issue that cryptocurrency is going
         | to solve.
        
           | pontus wrote:
           | Well, there are a lot of ways of investing your money in ways
           | that track or exceed inflation, so it's not like people
           | without savings are doing well with inflation whereas all
           | those people with savings are getting screwed.
           | 
           | Further though, I would imagine that people who have a little
           | savings but not that much, would end up keeping that in a
           | savings account rather than investing it. As such, the little
           | savings poor people do have would be eaten away by inflation.
           | 
           | Also, like you suggest, wages are not rising with inflation
           | so that just makes things even worse.
        
         | imtringued wrote:
         | >1) Believe prices constantly rising is good for poor people.
         | 
         | Inflation isn't meant to cause rising prices. It's a shitty
         | approximation for negative interest rates. What inflation is
         | doing is letting money rust so that it is flexible enough to
         | represent the real world. Logically speaking income earned in
         | 2010 should be losing value because of the opportunity cost of
         | not employing people. Imagine an economy with two people and
         | you decide to spend your money ten years later. The other party
         | has to spend 10 years unemployed. Even though you lost 10 years
         | of potential employment you still insist that your money from
         | 10 years ago is still worth the same amount. Inflation adds
         | enough flexibility to represent this loss and makes the holder
         | of money realize the loss in the real economy, which encourages
         | him to minimize the loss in the real world. With deflation you
         | deny its existence by making the money system rigid and
         | incapable of representing this potential state of the economy.
         | 
         | Say's law postulates that aggregate demand and supply are
         | always in balance in a barter economy. Money as an intermediary
         | allows short term mismatch between the two and deflation allows
         | an almost permanent mismatch. Since inflation erodes past
         | income any surplus is eroded which encourages people to utilize
         | their surplus and let aggregate supply and demand match again.
         | 
         | >2) Advocate that governments can spend potentially an infinite
         | amount without consequences because they control a printing
         | press. And looking at the actions of, e.g. the US government,
         | it is easy to suspect that the people who understand the nuance
         | there aren't the ones in control of the money supply.
         | 
         | Maybe you like to think that other people think like that but
         | reality is quite boring. What people have recognized is that
         | the real world matters, not the financial world. If you see an
         | unemployed person you can hire that person and at the end of
         | the day customers are happy because that person provided goods
         | and services and the worker is happy because he got paid. If
         | granting credit and promising debt lets that person work, then
         | it's better than trusting on some financial bean counter that
         | tells you that employing people and providing goods and
         | services is bad for the economy.
        
       | CryptoPunk wrote:
       | The title is 100% true for much of the cryptocurrency sector, but
       | the body of the article is a shameless bad-faith attempt to
       | rationalize an extremely heavy handed government response that
       | would criminalize entire classes of voluntary interactions
       | between consenting adults, and turn the future of the internet
       | into a much darker place with much more government repression.
       | 
       | Only a deep-seated ideological precept, that idealizes the
       | supremacy of the state over all aspects of the lives of private
       | citizens, could motivate such a dismissively mean-spirited
       | article. There isn't an even an attempt by the author to give the
       | subject an objective treatment. Usually this would sit fine with
       | me, as a useful counter-force to the mirror negative that exists
       | in the deluge of crypto hype from profit-motivated speculators,
       | but the advocacy for illiberal laws that would prohibit financial
       | privacy and imprison peaceful individuals makes the article
       | unconscionable.
        
       | pcmaffey wrote:
       | If you think about crypto as a MMOG, people's behaviors start to
       | make a lot more sense.
        
       | marban wrote:
       | The whole NFT craze lost me when tech founders I once highly
       | respected started pushing and showing off their ugly gifs and
       | trading cards on Twitter.
       | 
       | Bad taste of the bored rich is not a new thing, but I hope NFTs
       | won't become a noble tradition.
        
         | skinnyasianboi wrote:
         | It's not just ugly gifs. It's digital art, your online game
         | items, concert tickets, supermarket vouchers and so on.
         | 
         | Quote from statista: "In 2020, global gaming audiences spent an
         | approximate 54 billion U.S. dollars on additional in-game
         | content". But the players don't own their purchases. You don't
         | play the game anymore, servers go down or you get banned and
         | all your stuff is gone. Think about that.
         | 
         | Edit: Of course my comment got nothing but down votes again on
         | HN. Was worth a try anyway.
        
           | stephen_g wrote:
           | But it's not. It's a token on a blockchain with some
           | metadata. You'd actually need a separate legally binding
           | contract to link it to actual ownership, and at that point
           | you could have just made up the legal contract without any
           | blockchain or token...
           | 
           | With your example, if the game goes down, an NFT of the in-
           | game purchase isn't going to be very useful. What's the
           | difference between having a token or not of the content if
           | there are still no servers for the game either way? Maybe the
           | NFT still points to a screenshot? Great...
        
             | skinnyasianboi wrote:
             | Imagine an indie game developer creating an open-world game
             | where you can use your Sims furniture, Warcraft sword,
             | Stardew Valley animals and so on.
             | 
             | I don't quite understand your first point. Edit: the NFT is
             | verifiable in your wallet and comes from a verified source
        
               | kristjansson wrote:
               | Doesn't your indie developer still have to acquire both
               | licenses and assets for all those items, since NFTs (a)
               | don't actually convey a recognizable legal ownership or
               | right of any kind and (b) impose costs proportional to
               | size in bytes, and so can't effectively store the actual
               | data over which they claim ownership?
        
               | skinnyasianboi wrote:
               | Good points. (b) The actual data (jpeg, mp4, 3d mobdel,
               | etc) is usually stored on a system like https://ipfs.io
               | and not on the NFT chain itself. (a) I think the optimal
               | solution would be that it is in the interest of
               | publishers to have their assets used in other projects.
               | This would give them more value, and the NFT creator
               | usually charges a transaction fee on their assets (every
               | time something is sold on the secondary market, a
               | percentage goes to the creator). Another option would be
               | for the indie developer to assign these items to their
               | own items. For example, AAA studio sword xy is assigned
               | to indie game sword xy. Of course you can't manually
               | assign zillions of NFTs, you would probably do this in
               | tiers and I would imagine there would be services built
               | around that. This would eliminate the IP problem as far
               | as I know, and would just mean that owning NFT xy unlocks
               | a feature/element in the game. This would of course be
               | interesting for official collaborations between
               | publishers.
        
           | mosdl wrote:
           | You listed centralized services, so even with nfts they still
           | can be made useless or revoked/etc.
        
             | skinnyasianboi wrote:
             | You mean that your in game items get revoked after you got
             | banned from a game? That's actually a good point. It
             | wouldn't help you to sell these items on a secondary market
             | except you try to scam someone. At least the items could
             | still bring you value in external games/prokects.
        
         | iscrewyou wrote:
         | The problem with NFTs and blockchain is that they purport that
         | anyone can have access to it...the whole decentralized thing.
         | 
         | Except all these NFT stores require an invite from another
         | artist. As someone who loves taking photos but isn't socially
         | connected because it's a passion and not a job, it seems very
         | elitist. Maybe it's that way because I don't have access to it
         | and my brain is just playing tricks. But it seems like one of
         | those "you aren't good enough for this" kind of thing. Some of
         | the online stores like Foundation app have become gatekeepers
         | rather than outlets.
        
         | jcpham2 wrote:
         | I have never used Twitter, I don't understand NFTs.
         | 
         | Most of the influencers are shilling something, obviously
        
         | TomGullen wrote:
         | I must be getting old because I just don't get NFT's. They look
         | stupid and I don't get why anyone would buy them. Declining
         | tech companies and startups seem to be trying to crowbar them
         | into their products much like Blockchain when it was new and
         | shiny. Perhaps younger me would of seen something I can't
         | anymore.
        
           | SergeAx wrote:
           | They don't look stupid, they are stupid outside of their
           | blockchain. There's no way to force a proof of ownership
           | between NFT and physical item.
        
           | endymi0n wrote:
           | I feel exactly the same way when thinking about the 90s.
           | Telemetry and multimedia... two words that back then had
           | exactly the same vibe to me. Both sounded as ambitious as
           | ambiguous, raised millions and made zero business sense
           | despite sounding glamorous and all-encompassing.
           | 
           | The writing was on the wall when the big newspapers gave
           | stock tips for consumers on the hottest newest telemetry
           | startups.
           | 
           | We all know how it went.
        
           | k__ wrote:
           | NFTs can be anything.
           | 
           | I don't get the art focus.
           | 
           | They can be a degree, a concert ticket, a driving license, a
           | permission to a API service, equity to a company.
        
             | TomGullen wrote:
             | Permission to an API service maybe, the rest of the
             | examples create more problems than they solve.
        
               | k__ wrote:
               | How come?
               | 
               | Just think about all cases of fake liceses? This could be
               | verified rather easily with an NFT while faking it would
               | be quite hard.
        
               | dkersten wrote:
               | How? Maybe I'm misunderstanding what you're saying.
               | 
               | Since drivers licenses are linked to individuals, and
               | cannot be traded, the traffic cop that's checking your
               | license will need to compare it to your government issued
               | ID. Then they look it up to see that its valid and linked
               | to you as a person.
               | 
               | How is doing this as an NFT (or other blockchain thing)
               | any better than having a government database they look
               | up?
               | 
               | This is a big problem I have with _most_ blockchain tech:
               | yes, it _can_ be built on a blockchain, but it doesn 't
               | _need_ it and alternatives tend to be simpler and
               | cheaper.
               | 
               | I'm overall pro cryptocurrency and blockchain, but if we
               | want people to still take it seriously in twenty years
               | time, we need the use cases to actually make sense. I
               | don't see how NFT's make sense here, unless I'm missing
               | something.
        
               | k__ wrote:
               | To be fair, I don't know either what of the possible use-
               | cases are actually good use-cases.
               | 
               | But having a globally available, decentralized, and
               | transparent database for some of these "certificats"
               | could be a good thing.
        
               | detaro wrote:
               | What would you verify with an NFT? "the government
               | created this NFT"? Also known as "a digital signature",
               | if you leave off all the blockchain bits?
        
             | rchaud wrote:
             | So can blockchain, but the only use cases anybody has ever
             | cared about are the get-rich-quick ones.
        
               | k__ wrote:
               | Yes, and that's sad. It has so much more potential.
        
             | warkdarrior wrote:
             | Out of the examples you gave, degrees, driving licenses,
             | and permission to an API service are not suitable for NFTs,
             | since they cannot/should not be traded. Presumably we do
             | not want for people to sell their driving licenses or their
             | degrees.
        
               | k__ wrote:
               | The (non-) fugibility of a token is just one aspect of
               | it.
               | 
               | You can code a non-tradable NFT no problem.
               | 
               | Tradable NFTs are just the hype right now.
        
               | stale2002 wrote:
               | > You can code a non-tradable NFT no problem.
               | 
               | WTF does that even mean?
               | 
               | Do people remember what a blockchain even is, at this
               | point?
               | 
               | A blockchain is a chain of transactions. You take away
               | the transactions, and its not a blockchain anymore.
               | Unless we _really_ stretch the definition of a
               | "transaction" or blockchain......
               | 
               | Cryptocurrency has lost the plot. People are talking
               | about blockchains, that don't have mining, or
               | transactions now apparently.
        
               | cslarson wrote:
               | blockchains are databases.
               | 
               | transactions change the state of the database. they
               | aren't limited to trading-related transactions.
        
               | detaro wrote:
               | Creating an NFT is a transaction.
        
               | dkersten wrote:
               | So you limit the types of transactions in your blockchain
               | to _" this thing has been issued to this
               | person/id/hash/whatever"_ and do not have any
               | transactions of the type _" this thing has changed
               | ownership to a new person/id/hash/whatever"_. A bank
               | account that allows deposits but no
               | withdrawals/transfers, its still a ledger, it just limits
               | the operations you are allowed to do (not the operations
               | you could theoretically do).
        
               | andechs wrote:
               | When a central authority is in charge of adding
               | transactions to the blockchain, ie: DMV issuing licences,
               | what's the advantage of blockchain over a standard
               | database?
        
               | dkersten wrote:
               | Oh, I agree. See my other comment on this page, I said
               | the exact thing you did! Most cases where blockchain is
               | usable, alternatives are still simpler, unless you
               | actually need it to be distributed and zero trust,
               | blockchain probably doesn't make sense.
               | 
               | I was just pointing out how it can be done or how it
               | might make sense, if you needed it for something where
               | blockchain did actually make sense, but in the case of
               | drivers licenses, I don't think it does.
        
               | k__ wrote:
               | To me it's the other way around.
               | 
               | The blockchain space is just starting out and people try
               | new things. But many can only see the crypto currency
               | use-case.
        
           | rchaud wrote:
           | The only implementation of NFTs I've come across that doesn't
           | look like a fly-by-night operation is NBA's Top Shot, where
           | you can buy video NFTs of special moments in NBA history.
           | 
           | At the very least, you can buy a piece of IP directly from
           | the IP holder, and receive a package that's nicely presented.
           | 
           | It's still totally overpriced, but I can see at least some
           | value. It still needs to go a step further technologically.
           | Like a special app that allows you to view the NFT with AR
           | features artificially implemented. Or displaying it in a
           | holographic form, especially for moments captured with
           | 360-degree cameras.
        
             | TigeriusKirk wrote:
             | My main complaint with Top Shot is that the moments exist
             | only on the proprietary site. They also can't be traded
             | anywhere but that site. This removes any value the nft
             | aspect brings to the table as it's now single-point-of-
             | failure.
             | 
             | There was talk about expanding off the one site, but I
             | haven't seen any progress there.
        
             | paulgb wrote:
             | > At the very least, you can buy a piece of IP directly
             | from the IP holder
             | 
             | You're not really buying the IP in any meaningful way,
             | though, you just get a non-exclusive, non-transferable (!)
             | right to display it. They can still air it or license it to
             | others without paying you royalties.
        
               | rchaud wrote:
               | I understand that, I am likening it to purchasing a DVD
               | of a game, which is something that used to happen. Maybe
               | not in the NBA, but in soccer, some clubs do put out DVDs
               | of famous victories.
               | 
               | And even then, I'd say those mass-manufactured DVDs with
               | 90 mins of content are intrinsically more valuable than a
               | GIF-length video clip.
        
               | paulgb wrote:
               | Ah, I think we agree then. I guess someone could make the
               | argument that even though the license to reproduce is
               | limited (e.g. it must be non-commercial), you technically
               | have more IP rights with a TopShots NFT than with a DVD.
               | But yeah, I'd take the DVD myself (if I still owned a
               | player).
        
             | Jxl180 wrote:
             | TopShot is nice and I made some money on it -- but it only
             | takes fiat currency and can't be sent to my cold storage or
             | transferred off the marketplace. Nothing about it is in the
             | spirit of an NFT or anything decentralized.
        
           | newbie789 wrote:
           | It's a made up class of asset that's entirely made for money
           | laundering. That's it, now you're an expert in NFTs.
        
           | 21eleven wrote:
           | The thing about NFTs is that many people who buy them "don't
           | get NFTs".
           | 
           | All an NFT is is a token that represents ownership, like if
           | the title to your car or house deed was on a blockchain.
           | 
           | NFTs have some sane use causes like designating the owner of
           | a valuable asset or creating electronic tickets that can be
           | resold or transferred without some centralized entity like
           | ticketmaster.
           | 
           | Prior to NFTs existing, would you purchase the ownership
           | rights to a gif or tweet? Probably not. And that is what is
           | dumb about the excitement around NFTs, some people with more
           | money than sense seem to think that now that you can
           | represent ownership on a blockchain some things, like crappy
           | jpegs, have suddenly become valuable assets.
        
             | lostcolony wrote:
             | Yep. It's a completely made up problem. It's maybe useful
             | in enforcing existing IP law (i.e., I can prove that that
             | picture is mine), but even that is questionable (proof of
             | ownership of digital IP has already been proven
             | satisfactorily for courts of law to rule on it).
             | 
             | The fact there is a new way of proving ownership doesn't
             | make the thing owned valuable.
        
               | pornel wrote:
               | NFTs don't actually prove ownership of anything but
               | themselves. Owning a hash of a URL has no connection to
               | the real world, and can't prove that the NFT was created
               | by the author of the artwork.
               | 
               | It makes me doubly furious that NFT is advertised as
               | caring for artists. In fact, NFT makes it easier than
               | ever to sell stolen artwork. NFT itself doesn't contain
               | any copyrighted material, and selling metadata/URLs is
               | not illegal, so it's likely that fraud through NFT is de-
               | facto legal if you just carefully word it as selling the
               | NFT of the artwork, and not the artwork itself.
        
               | lostcolony wrote:
               | I'm not saying it does; I AM saying that it's an
               | additional public record that can be used to bolster a
               | case in the event of unclear ownership. And even that is
               | "maybe" useful, hence my use of that phrase.
        
               | marcus_holmes wrote:
               | As far as I'm aware, the NFT doesn't itself convey any
               | transfer of copyrights (or any other form of IP). That
               | has to be done by a separate document (and therefore it's
               | that document that transfers the rights, not the NFT). So
               | I don't see how the NFT is doing anything to help enforce
               | existing IP laws?
        
             | anonporridge wrote:
             | Here's an NFT which is the best description I've ever seen
             | of what NFTs actually are,
             | https://foundation.app/@visualizevalue/nfts-explained-12012
             | 
             | It sold for 74 ETH.
        
               | somenewaccount1 wrote:
               | Which is about approximately $240,000 USD.
               | 
               | Hrm...I wonder if I should mint some nft's?
               | 
               | And so it begins.
        
               | pornel wrote:
               | I think it's more likely that the author of this NFT paid
               | this much to himself. It's the pump phase of a pump and
               | dump scam.
        
               | anonporridge wrote:
               | This is the equivalent of someone seeing how much a
               | Picasso sells and wondering if they should become an
               | artist. For every success, there are 10,000 failures.
        
               | somenewaccount1 wrote:
               | That's true, but in the Picasso scenario I actually need
               | to learn to do art. In the NFT case, apparently a 3rd
               | grade level of photoshop skills would do.
        
               | kristjansson wrote:
               | 3rd-grade photoshop and weapons-grade marketing
        
               | anonporridge wrote:
               | You could also tape a banana to a wall and sell it for
               | $120k in the traditional art world.
               | https://news.artnet.com/art-world/maurizio-cattelan-
               | banana-c...
               | 
               | Don't mistake extreme technical skill as being the sole
               | reason humans value things. Sometimes, it's just about
               | being the first to effectively convey a new idea, and the
               | crudeness of the execution doesn't matter. And there are
               | plenty of extremely skilled artists that spend decades
               | mastering their craft whose work is effectively
               | worthless, because they're not actually breaking new
               | ground.
        
               | somenewaccount1 wrote:
               | In hindsight, I was making a joke that seeing the value
               | of an NFT has convinced me to make NFT's - and that this
               | is the very cycle which has made NFT's valuable.
               | 
               | I was not actually implying that I would literally start
               | making NFT's right now.
               | 
               | I did however forget that jokes and humor were against
               | Hackernews rules, and for that I thank you kind sir for
               | the reminder.
        
               | isoskeles wrote:
               | s/Picasso/Rothko/
        
               | somenewaccount1 wrote:
               | To make that nft would take me - or my 8 year old niece -
               | no more than 2-3 hours to craft.
               | 
               | Learning to mix paint like Rothko would take years.
        
               | tomp wrote:
               | Except that, it's not even true.
               | 
               | NFTs are equivalent to a orange checkmark on the website
               | twotter.com that I just set up.
        
               | anonporridge wrote:
               | I imagine it could actually develop into a similar
               | situation for physical art. There is an original work
               | that is worth a lot because humans are weird like that,
               | and an entire industry of experts who try to sort out the
               | actual original NFT that was minted by the artist over
               | the duplicates and fakes.
               | 
               | For example, we know the original creator of Nyan Cat
               | came out of the woodwork to retroactively mint an NFT for
               | it, https://foundation.app/@NyanCat/nyan-cat-219, which
               | sold for 300 ETH. Obviously, anyone can create an NFT
               | with the same gif, but we are reasonably certain that the
               | actual created this ONE and declared it be the original.
               | 
               | Obviously, this is a very odd thing to try to wrap your
               | head around, but is it really that different from valuing
               | original physical artwork?
        
             | root_axis wrote:
             | > _All an NFT is is a token that represents ownership, like
             | if the title to your car or house deed was on a
             | blockchain._
             | 
             | No. An NFT is just a few bytes of text pinned to a
             | blockchain. They are essentially useless, and every useful
             | property of an NFT can be achieved using asymmetric
             | encryption or digital signatures, the blockchain component
             | is just wasteful hype.
        
               | CryptoPunk wrote:
               | If an external source - say the Twitter account of an
               | artist - can authenticate that the holder of the NFT is
               | who the creator of the art work wants to be recognized as
               | the owner, then social consensus will lead to widespread
               | value assignment to that NFT.
               | 
               | The ability to hold and trade the NFT on the public
               | blockchain makes that asset accessible to a large number
               | of autonomous on-chain markets, like dApps which allow a
               | person to take out self-executing loans that use the NFT
               | as collateral.
        
               | acdha wrote:
               | > If an external source - say the Twitter account of an
               | artist - can authenticate that the holder of the NFT is
               | who the creator of the art work wants to be recognized as
               | the owner, then social consensus will lead to widespread
               | value assignment to that NFT.
               | 
               | In other words, you don't need the blockchain because the
               | actual value comes from a different system. The only
               | thing it's adding is overhead and unreliability.
        
             | TomGullen wrote:
             | Can't understand "Ownership of a Tweet" as Twitter owns
             | them - or at the very least they can destroy them whenever
             | they want.
        
             | cperciva wrote:
             | Thing is, NFTs _don 't_ represent ownership, absent some
             | external legal documents which tie ownership to the NFT.
             | (And even with such external documents p perhaps not; see
             | e.g. the statute of frauds which restricts in what form
             | land ownership can be transferred.)
             | 
             | I can sell NFTs of bridges all day long; doesn't mean
             | anyone is buying a bridge.
        
               | Joeboy wrote:
               | An NFT is decent evidence in favour of the keyholder
               | being the creator of a work, if there's no earlier
               | evidence of somebody else being the creator of the work.
               | 
               | When people first started talking about them I thought
               | that was the idea - a kind of people's copyright registry
               | on the blockchain. Which seems like a fairly reasonable
               | idea, as far as it goes.
               | 
               | Edit: To be clear, I mean a copyright registry that is
               | used for the sort of thing copyright registries are used
               | for, ie. adjudicating copyright disputes. I am _not_
               | saying an NFT of the Mona Lisa is good evidence you
               | painted the Mona Lisa (unless you minted it in 1502), and
               | I 'm _definitely_ not saying the current market in NFTs
               | is sensible.
        
               | meheleventyone wrote:
               | It's not at all there is rampant fraud in the NFT market.
               | So much so Deviantart made some detection software to
               | help alert artists their work is being stolen.
               | 
               | All that can be definitively proved outside of other
               | methods is who created the token.
        
               | Joeboy wrote:
               | It sounds like you're talking about cases where, as I
               | said, there's "earlier evidence of somebody else being
               | the creator of the work". _In_ _the_ _absence_ _of_
               | _that_ , I think the token would be a decent piece of
               | evidence in favour of the token owner.
        
               | meheleventyone wrote:
               | So would posting it anywhere online essentially. Twitter
               | would work for the same usecase. Or the old sending it to
               | yourself through the mail thing.
               | 
               | NFTs also don't put the image on chain usually instead
               | just linking from the metadata so a fraudster could
               | register a bunch of placeholder NFTs and then later put
               | stolen art where the link points to. Hey Presto you can
               | steal art and "prove" the actual creator is the fraud.
        
               | Joeboy wrote:
               | Well, posting the actual content publicly would obviously
               | make it public, which registering a hash on the
               | blockchain would not. "Sending it to yourself through the
               | mail" would probably be the competition, and I would say
               | a cryptographic hash is at least as good as a postmark,
               | as well as cheaper.
               | 
               | Anyway. I wasn't talking about NFTs as they exist today.
               | I'm just saying the original concept (as I understood it)
               | seemed basically reasonable, before everybody went
               | insane.
        
               | root_axis wrote:
               | > _An NFT is decent evidence in favour of you being the
               | creator of a work, if there 's no earlier evidence of
               | somebody else being the creator of the work_
               | 
               | It's really not at all reliable. I could create an NFT
               | for the "Joeboy" HN account right now, and ostensibly
               | become the owner of your HN account since such an NFT
               | does not already exist. Obviously, this makes no sense,
               | the NFT is meaningless.
        
               | capableweb wrote:
               | No, you could create an NFT that supposedly represents
               | that but unless people buy into the idea, no is becoming
               | the owner of anything.
               | 
               | If instead Ycombinator would release each user as an NFT,
               | and allow people to buy/sell then, then yes you could
               | become the owner of an HN account via NFTs. But until
               | then, the one who knows the password is the owner.
               | 
               | People seems to have some sort of problem with trying to
               | understand NFTs were all thoughts and logic go out the
               | window as soon as NFTs are mentioned.
        
               | Joeboy wrote:
               | As I understood their comment, they were pointing out the
               | absurdity of the idea you are also pointing out the
               | absurdity of.
        
               | Joeboy wrote:
               | If there was no evidence of the account existing before
               | you registered the NFT, I think that would be a
               | reasonably credible bit of evidence in your favour.
        
               | acdha wrote:
               | > An NFT is decent evidence in favour of the keyholder
               | being the creator of a work, if there's no earlier
               | evidence of somebody else being the creator of the work.
               | 
               | The second clause shows why the first is not true: the
               | other evidence is what gives you the information you
               | need. In every context where it really matters it comes
               | down to what a court would accept and ... uh ... I would
               | not want to be the one having to tell a judge that
               | something is proof of ownership when anyone on the
               | internet could submit the same record.
        
               | Joeboy wrote:
               | I can't say for sure what a judge would make of a
               | cryptographically secure hash of a piece of content that
               | there's no record of prior to the hash's registration on
               | a blockchain. I think if somebody tries to claim
               | authorship of eg. a screenplay I've written, such a hash
               | _should_ be pretty good evidence in my favour.
        
               | cratermoon wrote:
               | Yeah, an NFT is more like a receipt. Except when you buy
               | one, you _only_ get the receipt. The actual item remains
               | "out there".
        
             | KorematsuFredt wrote:
             | NFTs don't sell ownership rights. NFTs are equivalent of
             | buying photographs of a celebrity. You may own NFT that
             | represents Taylor Swift, but she aint going on a dinner
             | date with you.
             | 
             | Not to mention you are not the only one to hold it either
             | as someone else can Taylor Swift NFT and sell it to.
             | 
             | It is exactly same as buying and owning cards of your
             | favourite celebrity. They are worthless even compared to
             | cowdung and have absolutely not practical value.
             | 
             | One has to be high on drugs to buy ugly gifs for thousands
             | of dollars.
        
               | Jxl180 wrote:
               | The NFTs that people are making their profile pictures
               | are drastically different from the celebrity and athlete
               | NFTs put out by DraftKings or topshot. The NFTs in
               | profile pics on Twitter (like crypto punks) have randomly
               | generated features making each and every minted nft
               | completely unique.
               | 
               | I feel like there are two vastly different audiences with
               | NFTs. The casual, celebrity/athlete NFTs that are selling
               | multiple of some persons face for fiat currency, and
               | parole who are actively participating in minting NFTs
               | with web3 dApps made by developers with roadmaps and a
               | strong community.
        
           | A4ET8a8uTh0 wrote:
           | There isn't much to get. It is a collectible and now, for a
           | variety of reasons, all sorts of collectibles are gaining
           | value. I have a pet theory that after art market got heavily
           | regulated with AML laws, a lot of it moved to NFT, where it
           | is very much free game for anyone with money to stake.
        
           | throwdecro wrote:
           | I think it's something you can make for free, and sell for
           | money. I don't think anyone "gets" the whole thing; I'd be
           | shocked if anyone selling these things was also a collector.
           | You either get the money or you give the money.
        
           | nradov wrote:
           | Beanie Babies also looked stupid. It's just another fad and
           | bubble.
           | 
           | https://www.wbur.org/hereandnow/2015/03/02/beanie-baby-
           | bubbl...
        
             | SergeAx wrote:
             | At least you may physically own a beanie doll.
        
               | cratermoon wrote:
               | They're more like tulips. Physically owning a tulip is
               | rather transient.
        
               | [deleted]
        
               | dehrmann wrote:
               | Exactly. If you think your beanie baby is still
               | interesting in 2021, you can put it on a shelf. Showing
               | off your NFT quickly devolves to "cool story, bro."
        
           | mindvirus wrote:
           | I'm still skeptical, but think of them as digital goods that
           | you own, and that can follow you across applications. If you
           | collect items in a game, you can have them in another place
           | too.
           | 
           | The metaverse pitch is that you can create economies around
           | these that aren't constrained to a single application. I can
           | make and sell cool art, and you can buy that art and put it
           | anywhere - and it's yours, in a way that a downloaded PNG
           | just isn't.
        
           | larsiusprime wrote:
           | As far as I can tell, there's nothing to "get":
           | https://www.fortressofdoors.com/the-degraded-blockchain-
           | prob...
        
           | zepto wrote:
           | The emperor is dressed in NFTs.
        
             | cratermoon wrote:
             | The clothes have no emperor
        
         | trystfest wrote:
         | It lost me when an OpenSea executive tried to manipulate the
         | prices. I'm just happy that he got caught.
        
         | oefrha wrote:
         | I'm on board if charities* could somehow get in on the action
         | and convince the bored rich to part with their money.
         | 
         | * Real charities, not those billionaire tax avoidance schemes.
        
           | whywhywhywhy wrote:
           | > Real charities, not those billionaire tax avoidance
           | schemes.
           | 
           | No such thing.
        
             | javert wrote:
             | Do you even know what you're talking about?
             | 
             | In the US, a billionaire has more money at the end of the
             | day if they just pay taxes on it than if they give it to
             | charity and take the deduction.
             | 
             | The only other way a charity helps a billionaire save on
             | taxes is if they use the charity's assets (e.g. boats,
             | helicopers, real estate) as personal assets. But that's
             | felony tax fraud. A billionaire wouldn't be likely to risk
             | prison for that kind of chump change.
             | 
             | The crooked thing about charities is the people who _run
             | them_ , focus on fundraising, and pay themselves a huge
             | salary. But those people aren't billionaires.
             | 
             | Now, you could rent your real estate to a charity you
             | control at an inflated price, or sell them other services,
             | but I think that's probably an edge case.
        
               | d0gsg0w00f wrote:
               | Yeah, charities aren't full tax avoidance for the rich.
               | It's more of a dick swinging contest amongst the wealthy
               | with some tax breaks to take some of the sting away. At
               | least some good may come from these contests though. Even
               | if 90% of the funds go to pay charity management salaries
               | it's better than nothing.
        
               | javert wrote:
               | That's way too cynical. That's out of touch with reality.
               | Lots of really rich people give to charity and don't talk
               | about it.
        
               | azundo wrote:
               | It isn't about having money, it's about control of that
               | money. Zuckerberg doesn't "have" the money he gives to
               | his foundation, but he still controls it, vs taxes which
               | he wouldn't.
        
               | javert wrote:
               | Better Zuckerberg than using the money to send our young
               | men to their deaths in Afghanistan, or pay people to have
               | kids and not work, or to have it siphoned off through
               | fraud by government workers, or wasted by their
               | negligence, or...
        
           | pamplemoose wrote:
           | I liked the idea of the moonshot bots
           | https://decrypt.co/79606/moonshot-bots-nfts-gitcoin-
           | ethereum... where the funds raised are used for public goods.
        
           | Tenoke wrote:
           | I'd wager billionaires donate a lot more to charities than
           | they spend on nfts. Look at the Gates Foundation.
        
             | oefrha wrote:
             | You don't need to be a billionaire to count as "bored
             | rich", which I take to mean anyone who has too much money
             | lying around and can't find better uses than shitty
             | computer-generated "art" (note that this doesn't include
             | people who buy these with the sole purpose of flipping them
             | to a greater fool).
             | 
             | There are a surprising number of bored rich people,
             | especially when you consider all the new-found crypto
             | wealth. Most of them probably haven't contributed any of
             | their excess wealth to help the hundreds of millions of
             | people who are still starving, so if NFT is one way to
             | extract some of that, so be it.
        
               | zrobotics wrote:
               | >> (note that this doesn't include people who buy these
               | with the sole purpose of flipping them to a greater
               | fool).
               | 
               | Hate to burst your bubble, but that is 99.99% of the NFT
               | market. There is maybe 5 people total who bought a NFT
               | for art appreciation reasons, but aside from that
               | rounding error the only reason anyone owns one is as a
               | speculative investment.
        
               | oefrha wrote:
               | Sure, even in that scenario, if a slice of the MLM money
               | can be used for societal good, it's still something.
        
         | sercand wrote:
         | I didn't understand NFT storm as well then I made a 10K
         | collection of NFT images with my friend (I wrote the smart
         | contract) in three weeks and earned $3M from that. I made a lot
         | of money and now I'm part of the creator community but I still
         | sometimes ask "Why?"
        
           | m12k wrote:
           | I understand why people make NFTs (to cash in on the craze),
           | but I still don't understand why anyone buys them (outside of
           | money laundering).
        
           | SwimSwimHungry wrote:
           | Nice subtle humble brag.
        
         | xwdv wrote:
         | You mean at some point NFT had you?
        
           | marban wrote:
           | Well, I found it to be a decent solution to support actual
           | artists (esp. Photographers or folks like eBoy fame) who were
           | already selling their digital art in genuine and honest
           | capacity.
           | 
           | But when some random guy without a story renders a thousand
           | animated dogs from a script and the actual art is how to push
           | it via Reddit bots, my support for artistic value creation
           | has reached its limit.
        
             | tiborsaas wrote:
             | I don't get this. The concept hasn't changed since and
             | those genuine artists are still there you supported.
             | 
             | Or things are only cool until they are not mainstream?
        
               | wpietri wrote:
               | I think the NFT thing is kinda ridiculous. But then so
               | are plenty of other marketing shenanigans. Maybe it could
               | have worked?
               | 
               | But once it was picked up by the grift/hype/fincrime
               | machine that has eaten cryptocurrencies, it lost all
               | semblance of plausibility to me. It has gone from
               | something like "I bought a small piece of a creator whose
               | work I treasure" to "ZOMG MAKE MONEY FAST".
               | 
               | As an example, take the guy who was big on what he calls
               | investing and I call gambling, who proposed to his
               | girlfriend with an NFT:
               | 
               | https://twitter.com/redditships/status/143239669460866253
               | 6?l...
               | 
               | For me it's the same deal with cryptocurrencies in
               | general. Interesting idea, and I want to visit the
               | alternate reality where it was developed gradually and
               | sanely by the sort of curious, well-meaning person that
               | got into it early on. But the sort of value-based
               | innovation I care about got stomped long ago.
        
               | II2II wrote:
               | My interpretation of what they were saying: NFTs are a
               | worthy means of supporting artists but have been tainted
               | by the other breed of artist (the scam artist).
               | 
               | I would extend that by suggesting that NFTs should be a
               | valid means of supporting new artists. The problem arises
               | when people dump garbage into the market to make a quick
               | buck. This will ultimately diminish the long term value
               | of NFTs, meaning there is less value for those who are
               | trying to make a living from their art (and even for
               | those who are trying to make a living investing in art).
        
             | saalweachter wrote:
             | Honestly I don't think NFTs - as it exists - was ever a
             | good model.
             | 
             | I know there's a hypothetical resale mechanism, but it's
             | fundamentally operating on a lottery system - artists are
             | buying a ticket hoping to hit it big, and that favors a
             | self-destructive mentality.
             | 
             | A Patreon-like system still has an element of luck, but the
             | steady monthly income makes it much easier for an artist to
             | say "this is working, I should keep going" or "I guess I
             | should start looking for a/keep my day job".
        
               | nerdponx wrote:
               | It wasn't ever meant to be a lottery. It was and remains
               | just a way to sell ownership rights to stuff without
               | physically transferring any stuff. The fact that a
               | speculation market bloomed around it was just a weird
               | circumstance.
        
               | im_down_w_otp wrote:
               | Weird circumstance? It seems like an entirely predictable
               | outcome, and as such it seems like it may very well have
               | been the actual point.
               | 
               | Especially since NFTs confer no actual assets or rights
               | in anyway that matters EXCEPT for in an adjacent
               | speculative market.
        
             | pibechorro wrote:
             | I am an artist. Have shown in galleries, museums and rubbed
             | shoulders with all sorts of dealers etc in Manhattan art
             | world. What you see in the nft space is pretty normal.. for
             | every genuine, talented artist there are 1000 copy cats
             | just gaming the market trends. For every genuine,
             | professional art seller/buyer there are 1000 used car
             | salesmen looking to flip hype and bad taste for quick
             | profit, screw over naive and poor artist and the big
             | elephant in the room, money laundering.
             | 
             | The recent Met gala.. socialites and wealth parading the
             | halls hanging Caravaggio and Van Gogh, who died destetute.
        
               | analog31 wrote:
               | What's lacking is an agreed upon mechanism for
               | distinguishing the real artists from the hacks, and the
               | real buyers from the flippers.
        
               | ipaddr wrote:
               | Real art is what you agree in your mind is real art.
               | 
               | If you are trying to find something to filter out art
               | that will not skyrocket in prices that's different. You
               | need to find out what people are buying and only buy
               | those. Each subgroup will be buying different types of
               | art so research is required.
               | 
               | Anything is real art. A rock you brought in or a painting
               | made by a computer. As long as you see it as art, special
               | and perhaps get an emotion from it.
        
               | marban wrote:
               | "Art is what you can get away with", to quote Andy
               | Warhol.
        
           | fullshark wrote:
           | I was pretty torn about crypto, I saw most of what this essay
           | describes but I also did find it as a potential global
           | currency / computer system outside gov't control that could
           | enable more as a result. BTC v. $ has been discussed to death
           | but the BTC case isn't COMPLETE nonsense imo, in a world
           | where trillions are generated out of thin air to prevent debt
           | defaults and everyone supports it.
           | 
           | However once NFTs became a thing and the crypto whales
           | started pimping it I saw the truth. These people have no
           | vision beyond finding some story to get someone else to pay
           | more for their crypto tokens down the line, full stop.
        
         | analog31 wrote:
         | I have a rule, which is that by the time I dream up an idea,
         | plenty of other people have already had the same idea. So, when
         | I proposed selling NFTs of the rehearsals of my band, and told
         | my son about it, he said: "Dad, a million people are already
         | doing that sort of thing."
        
           | marban wrote:
           | If you're with Pink Floyd, you could still give it a try.
        
           | rchaud wrote:
           | Is your band famous in any way? Or does it have a cult
           | following of some kind?
           | 
           | If not, who would buy an NFT of your jam sessions? The
           | pioneering garage rock band The Stooges released a remastered
           | edition of 1970's Fun House some years back, and included 2
           | CDs of rehearsal/studio sessions and outtakes.
           | 
           | They were widely panned for it, with some reviews saying that
           | even the most ardent Iggy Pop fan wouldn't need 5 versions of
           | "TV Eye".
        
             | jrochkind1 wrote:
             | And yet people are buying NFT's of random crappy JPG
             | avatars by nobodies. I don't know why either!
        
       | endisneigh wrote:
       | ICANN isn't perfect (not even close, lol) - but I wish a
       | consortium of countries would just create their own crypto.
       | Unfortunately this would probably devolve to what we currently
       | have with individual fiat.
       | 
       | Would anyone even use a not-for-profit backed "crypto"? I don't
       | mean in the blockchain-backed sense, more in the ICANN/gift-
       | cards/points globally distributed sense.
        
         | wpietri wrote:
         | If you look at ICANN's .org fiasco, it's pretty clear that they
         | couldn't handle even the relatively small amount of money
         | flowing through that. The corruption opportunities of an entire
         | currency are way too much for them.
        
         | hanniabu wrote:
         | You mean ENS?
        
         | pjc50 wrote:
         | Bretton Woods, but for crypto?
        
       | henvic wrote:
       | Not necessarily, but to be honest I haven't seen a single
       | cryptocurrency that made sense so far.
       | 
       | I wrote about how misleading the crypto ecosystem is a while ago
       | here: https://henvic.dev/posts/bitcoin/
        
       | Justsignedup wrote:
       | The fomo is real tho.
       | 
       | Everyone imagines "just imagine if I invested when BTC was < $100
       | just a few years ago. I could be sailing near my own island now.
       | 
       | And with everyone from celebrities to investors constantly
       | promoting it, it is hard not to jump on the craze.
       | 
       | All "doom and gloom" has bounced off the market. I am still
       | expecting a massive crash, but to be honest, if I invested a few
       | years ago I would be sitting at 3-20x my investment.
       | 
       | It is insanely profitable.
       | 
       | Thats the fun part of all this :)
        
         | dorgo wrote:
         | >I am still expecting a massive crash
         | 
         | I wonder what you would consider a massive crash in crypto.
         | Because -90% in two or three months is nothing special, just
         | day-to-day business. I would start to worry if it drops below
         | 0.1% though.
        
         | jrochkind1 wrote:
         | In the sense that people who can't afford rent buying lottery
         | tickets is "fun".
        
       | cube00 wrote:
       | https://archive.is/SRr5X
        
       | brianolson wrote:
       | Cryptocurrency gives people something they want. At best it might
       | a new decentralized leaderless censorship-resistant free-as-in-
       | freedom finance platform. At worst it might be a new
       | decentralized leaderless pyramid scheme where we don't even need
       | a Bernie Madoff because now we have The Algorithm. If I am
       | simultaneously cynical and hopeful, maybe it will have an
       | adolescence of B and mature into A.
        
         | Synaesthesia wrote:
         | Except its not very decentralized and leaderless. It is
         | dominated by a few ultra rich players, to an even greater
         | extent than the stock market. And that didn't democratise
         | finance either.
        
           | fksadfji12 wrote:
           | Thats not true at all.
        
       | raptor99 wrote:
       | I think you can sub in the word Money or Currency in this
       | headline and it would still ring true or perhaps even more true
        
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