Why I don't really care about cryptocurrencies

GoldNRollGoldNRoll Posts: 70 Copper ✭✭
Being a long time liberty lover, I'm often asked by people questions on cryptocurrencies. They are very surprised to learn how little I care about this subject, as they associate libertarians with cryptocurrencies.

The thing is that talking about cryptos became so monopolizing that I effectively stopped joining events and going out with like-minded persons. I just got bored of this subject.

So that's how I'm asked why I don't care about cryptos, by both libertarians and non-libertarians. I thought why not sharing my answer with the Goldmoney community cafe, since the answer is ultimately related to gold.

The idea is that there are a lot of things in my life and in the world that don't work properly and need improvement. From trivial household appliances that annoy me more than they help me, to large scale social and business services. And there is an infinity of other things in this world that would make my life better but they don't even exist.
My time, energy and circle of influence as a single person are so limited, that I barely make a contribution to the repair and optimization of things that don't work well. Not to mention how little I achieve in creating new tools, services and ideas. With my resources being so scarce, I definitely don't wan't to waste them working on things that already exist and work well.

In the case of the tool called money (tool that provides a set of functions like indirect exchange, unit of account, store of value aso), there is already one that works pretty well and that proved its success during thousands of years of testing: Gold.
I tried to find qualities of cryptocurrencies that Gold doesn't provide but each time I some kinda find something, I also find two shortages coming with it.
So why in the world I would spent time and energy to create, to play with and more than anything, to talk about all sort of cryptos, when we already have Gold that works very well as money; and there are sooo many other broken or missing tools and services that really need our investment. It's just a matter of priorities.


  • GoldmattersGoldmatters Posts: 3,630 Admin
    Thank you for your thoughts @GoldNRoll ! It is true that there are many more important thing in life than wealth and money. Time is indeed so limited and how we allocate it is amongst the most important decisions we can make as humans.

    The reminder is appreciated :)
  • GoldNRollGoldNRoll Posts: 70 Copper ✭✭
    @Goldmatters Thank you for your words! They complete very well my idea.
  • SpontaneousOrderSpontaneousOrder Posts: 252 Bronze ✭✭✭
    Agree @GoldNRoll - crypto was supposed to create a money system where no trusted 3rd party was required. But:
    • I have no problem using a trusted 3rd party such as Goldmoney, as long as it's not a state actor or part of the banking system.
    • Crypto didn't quite avoid the trusted 3rd party anyway. There are two third parties: the miner's and the programmers. Normal nodes can no longer practically mine crypto, so the system is concentrated into a few enormous server farms. And other groups of programmers can easily create new blockchain crypto's, a form of inflation.
    Ultimately Swirlds Hashgraph will render the the current generation of distributed ledger technology obsolete.
  • RocketDogRocketDog Posts: 474 Bronze ✭✭✭
    @GoldNRoll I also agree with your sentiments overall. My interest in gold is to find a way to store the value I have already earned, not to have a second career as an investment manager, nor to trust my earnings with somebody else who supposedly knows how to invest it. Then, I want to get on with living, learning and enjoying what I can. Unfortunately, we can't be quite so simplistic these days. It still requires a lot of research to understand our world.
    If the cryptos ever settle out into a few major currencies that are actually used for secure, private, transactions at more stable prices, I would probably use them. Until then I'll just watch the circus.
  • GoldNRollGoldNRoll Posts: 70 Copper ✭✭
    @SpontaneousOrder Looking forward for the technology that will replace the server-based internet. There is one major requirement for this: a new protocol that is widely accepted by the industry and by the users. A protocol that provides identity for data and applications, so they cannot be impersonated or altered in other way than the author designed them to work. Is this Swirlds Hashgraph?

    @RocketDog I would would also use cryptos if they provide more price stability than fiat... and gold. Otherwise, there are many useful concepts that their development brought, like the blockchain and avoiding taxation :smile:
  • paddy10tellyspaddy10tellys Posts: 231 Bronze ✭✭✭
    If like me anyone cares to learn more about Swirlds Hashgraph then I suggest checking out this vid which explains it beautifully https://youtube.com/watch?v=LP0XubiIf6Y

    Good shout by @SpontaneousOrder
  • GMONEY1GMONEY1 Posts: 424 Silver ✭✭✭✭
    At first I was vehemently against crypto assets in a big way. My current position is actually neutral. My opinion is/was that they are a bubble--i.e. many "tokens" and "coins" having no intrinsic value with insane market caps...even still after the recent crashes-- but some of the technology inherent to some of these assets is quite interesting (and worth researching if you are into programming, tech, vc, etc.).

    I think banks and card issuers recognizing them as "Quasi-cash" is "progress" for the legitimacy of the space, but then again I consider "Cash" (fiat) to be "quasi-money"...

    Marrying a fast, scalable, decentralized, and secure protocol with gold -- i.e. real money-- could be a real winner.

    I think Sprott & TradeWinds are working on that. My understanding is that Goldmoney's Gold settlement system is similar to Ripple (except GM is centralized); perhaps, the next logical step would be decentralizing through a Stellar-esque system. It actually seems like Goldmoney and Stellar have similar missions; so this would be interesting to me.

    But overall, I would say I do care about the technology behind some of the crypto assets; but they are not money; gold is money.
  • GoldNRollGoldNRoll Posts: 70 Copper ✭✭
    BullionVault has a clear position on this subject, quite different from the trend:


    "Still, blockchains won’t solve any problems related to the physical delivery of gold, said Adrian Ash, a research director at BullionVault. The company runs an online platform for retail trading of about $2 billion of metal stored in vaults around the world, including Zurich, London, New York and Singapore. It handles 38 metric tons of gold, more than the reserve holdings of Peru.

    "People don’t trust the government, so why would you leave it at the government vaults?" Ash said. "Our customers don’t want it sitting in a commercial bank vault because they could go bankrupt. When we buy it from a bank, we put it in a specialist custodial facility. You need a truck to move it. Blockchain doesn’t solve the truck problem.""

    But who says that the self-driven trucks of the future won't be managed by a ledger? :smile:

    The main difference between gold and crypto is that in a blockchain, one's coins are found in all the nodes who downloaded the up-to-date blockchain. What makes the coins only accessible to one for use, is the private key that secures the "wallet".
    This is not the case for gold. One's gold is found only and only in one vault.

    So the blockchain versus client-server technology is limited to how the financial transactions are conducted.

    In the current banking environment, the transactions are carried out following the ISO 8583-1 (2003) standard. This standard is already ultra-fast and secure, prove that our payments with credit/debit card work very fast.

    So why changing it with a blockchain?

    I guess here is the trap. The blockchain will not make it more distributed. The banking system is already a centralized system in itself. It will only make it more centralized in one big ledger that is transparent for the governments to have instant access to any financial transaction of every person (node) much faster than today: the governments will have a copy of the real-time transactions... all the time. I don't think the governments will allow the existence of an inter-bank blockchain without having a window to decipher the transactions.

    Gold holders have an affinity for privacy. We prefer depositories and vault custodians who keep our gold safe from the banking system. I think the BullionVault position stands here.

    As long as a bar of gold can be physically stored in one and only one vault; and there is no such thing as a copy of it in all the nodes of the gold money environment; and we want privacy, the question is: why changing a classic financial transaction system in which for the gold to change owner only the acquirer and the issuer shall agree, with a system in which such transactions are visible and must be approved by the entire network of gold holders of the world?
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