Reading through your reply I get the impression that crypto is really no better than made up money at Disney Land or Canadian Tire.
Something like that. Difference is that it is issued not by some company, but by all people who involved in network. Value of that currency is created like value of any other currency - people who use it agree to use it like a mean of exchange. It differ only in that the confidence to state currencies are pushed by laws, and confidence in crypto is a product of people agreement.
If somebody will invent an cryptocurrency algorithm that will eliminate major problems of existing cryptos with speed of transactions, endless growth of blockchain and enormous computing power needed for running whole thing, that thing will become something like "Disney money" but accepted everywhere and issued by community of users.
Really, there are no many choices for "independent money". It is some precious metals/gems, improved cryptocurrencies or huge total barter network. If you know other alternatives, I'm all ears.
"Independent money" that could not be controlled by any authority, could not be taxed or confiscated could be a very helpful thing to defeat TPTB.
The problem with independent money is when things go south there’s no one to go to. I’m well aware of the corruption and lack of trust in the banks and the SEC but if you can bring proof forward shit can get done. If someone rips you off in bitcoin, you’re just SOL. There’s no regulator to report the bad exchange to. There’s no government to force an exchange to follow rules. MtGOX disappears overnight and thousands of people are out their coins and there’s nothing they can do about it.
Traditionally speaking it’s only the threat of force that keeps people in line. Play by the agreed rules or we come take everything and throw you in prison. We need to make the “elites” follow this same ruleset if we really to be bound by it, and with that cash still works. Having an unregulated currency system fails for me because I know people are greedy assholes and take advantage wherever they can.
Any regulation could work both ways. And currently, the way it works highly probably would not be for your interests. At least globally. You could win a single case, but the whole system make your win useless very soon. Inflation, taxes, rent, etc - they always took everything back.
Really, crypto is not unregulated at all. It is regulated by its algorithm, not by some authority. This gives a way to create an independent currency that will be resistant to "greedy assholeness" of people. Just mathematically. Interesting that there was attempts to create unconventional currencies resistant to greed in Nazi Germany. Money you own began to loose its value if you are keep them too long. So there was no way to accumulate them and to avoid losses you had to spend them by buying goods from other people. As money change owner, countdown to the time it began to loose value started again. Being greedy with that kind of money have no sense at all. You was pushed to make them and spend them by their nature. Of course that system was not perfect, and experiment was destroyed too soon by war.
Indeed regulation can work both ways as we’ve all seen in the real world. But crypto regulated by its algorithms means is still regulated outside the control of the general user. Making up your own currency only works if other people find it useful to use. Most of us aren’t buying, trading or even using shit coins people make. There’s plenty of claims of usefulness and anonymity for various coins but as time goes on these get proven wrong.
Gold was used because it had value other than just currency. Same with silver. Bartering works because the objects or service bartered has intrinsic value in and of themselves. The paper currency most of us use is fucked with by governments and shadow cabals, but it has the security of being useful anywhere in the country it’s issued, and generally slower change in purchasing power. Crypto can be worth a lot or at least something and be worthless when you wake up the next day. We’ve tarred and feathered and beheaded politicians and rulers in the past. Someone you’ve never met online who created a shit coin and ran off with the useful money is much harder to bring to that, ahem, special justice.
But crypto regulated by its algorithms means is still regulated outside the control of the general user.
Outside any control of anybody. Just like a physics law. It is much better than any other currency.
Most of us aren’t buying, trading or even using shit coins people make.
That is because its algorithm have fundamental flaws, like long transaction time, big transaction costs, etc. Once that flaws would be fixed, most people will prefer it at least over over bank accounts.
Don't forget, that current cryptocurrencies is just a beta version. And even first beta version with all its bugs and problems gain enormous popularity. That means there is a huge demand for an independent currency.
There’s plenty of claims of usefulness and anonymity for various coins but as time goes on these get proven wrong.
That was never proved worng. Crypto is clearly usefull as a way to avoid government control and it is really anonymous, since you don't need any documents and approval to create an account. Crypto is traceable, but anonymous. Traceability does not mean lack of anonymity. It is different things.
Crypto can be worth a lot or at least something and be worthless when you wake up the next day.
Just like any other currency. Gold/silver could be just prohibited for personal owning, like plutonium. And that's all. Since it is physical object, so you will be caught and jailed immidiately if you will try to use it.
However, crypto can't be instantly made worthless by any government. That is why it is still worth something. That is one of the unique property of crypto that makes it valuable.
Someone you’ve never met online who created a shit coin and ran off with the useful money is much harder to bring to that, ahem, special justice.
Creator of shitcoin can do absolutely nothing with your coins. He can do nothing with coin network, since it grow out to other people. You could easily ignore him and use your coins as you wish. You even could take his code and run your own instance of network, completely independent. That's the point.
As for "run off" - just don't be so dumb and don't transfer your coins from your own wallet to any shitty exchange or service you don't trust. You don't give your cash to a stranger promising something, so why you do it with your crypto? Who force you to create "your" wallet on some shitty services instead of your own PC? If your crypto wallet with coins is not on your own computer - it is not your wallet. Just like cash. Nobody can run off with your coins if you don't give them out willingly by yourself.
Something like that. Difference is that it is issued not by some company, but by all people who involved in network. Value of that currency is created like value of any other currency - people who use it agree to use it like a mean of exchange. It differ only in that the confidence to state currencies are pushed by laws, and confidence in crypto is a product of people agreement.
If somebody will invent an cryptocurrency algorithm that will eliminate major problems of existing cryptos with speed of transactions, endless growth of blockchain and enormous computing power needed for running whole thing, that thing will become something like "Disney money" but accepted everywhere and issued by community of users.
Really, there are no many choices for "independent money". It is some precious metals/gems, improved cryptocurrencies or huge total barter network. If you know other alternatives, I'm all ears.
"Independent money" that could not be controlled by any authority, could not be taxed or confiscated could be a very helpful thing to defeat TPTB.
The problem with independent money is when things go south there’s no one to go to. I’m well aware of the corruption and lack of trust in the banks and the SEC but if you can bring proof forward shit can get done. If someone rips you off in bitcoin, you’re just SOL. There’s no regulator to report the bad exchange to. There’s no government to force an exchange to follow rules. MtGOX disappears overnight and thousands of people are out their coins and there’s nothing they can do about it. Traditionally speaking it’s only the threat of force that keeps people in line. Play by the agreed rules or we come take everything and throw you in prison. We need to make the “elites” follow this same ruleset if we really to be bound by it, and with that cash still works. Having an unregulated currency system fails for me because I know people are greedy assholes and take advantage wherever they can.
Any regulation could work both ways. And currently, the way it works highly probably would not be for your interests. At least globally. You could win a single case, but the whole system make your win useless very soon. Inflation, taxes, rent, etc - they always took everything back.
Really, crypto is not unregulated at all. It is regulated by its algorithm, not by some authority. This gives a way to create an independent currency that will be resistant to "greedy assholeness" of people. Just mathematically. Interesting that there was attempts to create unconventional currencies resistant to greed in Nazi Germany. Money you own began to loose its value if you are keep them too long. So there was no way to accumulate them and to avoid losses you had to spend them by buying goods from other people. As money change owner, countdown to the time it began to loose value started again. Being greedy with that kind of money have no sense at all. You was pushed to make them and spend them by their nature. Of course that system was not perfect, and experiment was destroyed too soon by war.
Indeed regulation can work both ways as we’ve all seen in the real world. But crypto regulated by its algorithms means is still regulated outside the control of the general user. Making up your own currency only works if other people find it useful to use. Most of us aren’t buying, trading or even using shit coins people make. There’s plenty of claims of usefulness and anonymity for various coins but as time goes on these get proven wrong. Gold was used because it had value other than just currency. Same with silver. Bartering works because the objects or service bartered has intrinsic value in and of themselves. The paper currency most of us use is fucked with by governments and shadow cabals, but it has the security of being useful anywhere in the country it’s issued, and generally slower change in purchasing power. Crypto can be worth a lot or at least something and be worthless when you wake up the next day. We’ve tarred and feathered and beheaded politicians and rulers in the past. Someone you’ve never met online who created a shit coin and ran off with the useful money is much harder to bring to that, ahem, special justice.
Outside any control of anybody. Just like a physics law. It is much better than any other currency.
That is because its algorithm have fundamental flaws, like long transaction time, big transaction costs, etc. Once that flaws would be fixed, most people will prefer it at least over over bank accounts.
Don't forget, that current cryptocurrencies is just a beta version. And even first beta version with all its bugs and problems gain enormous popularity. That means there is a huge demand for an independent currency.
That was never proved worng. Crypto is clearly usefull as a way to avoid government control and it is really anonymous, since you don't need any documents and approval to create an account. Crypto is traceable, but anonymous. Traceability does not mean lack of anonymity. It is different things.
Just like any other currency. Gold/silver could be just prohibited for personal owning, like plutonium. And that's all. Since it is physical object, so you will be caught and jailed immidiately if you will try to use it. However, crypto can't be instantly made worthless by any government. That is why it is still worth something. That is one of the unique property of crypto that makes it valuable.
Creator of shitcoin can do absolutely nothing with your coins. He can do nothing with coin network, since it grow out to other people. You could easily ignore him and use your coins as you wish. You even could take his code and run your own instance of network, completely independent. That's the point.
As for "run off" - just don't be so dumb and don't transfer your coins from your own wallet to any shitty exchange or service you don't trust. You don't give your cash to a stranger promising something, so why you do it with your crypto? Who force you to create "your" wallet on some shitty services instead of your own PC? If your crypto wallet with coins is not on your own computer - it is not your wallet. Just like cash. Nobody can run off with your coins if you don't give them out willingly by yourself.