RSA cofounder: The world would've been better without cryptocurrencies It was a somewhat gloomy Cryptographers' Panel at the RSA Conference in San Francisco on Tuesday, with two of the industry's sages in a pretty grim mood. Adi Shamir, the S in the RSA algorithm and a cofounder of RSA Security, went off on cryptocurrency, saying its early promise has been wasted. While he said Satoshi Nakamoto's …
Crypto is no different from fiat currency. They both delute values one by mining while the other by printing. Most of the argument is crypto can not be traced and gives some anonymity but the same could one say about cash money. But for both once their are being in use for average use they can be traced as well. The issue here is what is intrinsic values behind any currency be it cash, digital or crypto? The real value is that is the value that a seller and buyer agree to exchange. And that real value somehow is pegged to some currency and then the seller can use that currency to buy other stuff of the same value he sold before. If currency is out of the scope the exchange is actually goods and services was values not the currency them selves. On that thought these exchanges also creates a web of trusts between buyers and sellers for valuables exchange. That way you may ship and expect payments in the future from a trusted buyer rather than a month known one or viceversa a buyer may pay in advance before getting the value he paid for. Once the world comes up with such trust system per individual or organizations and the market embraces it all currencies including crypto would be obsolete except in the black market as token for exchanging under the hood. China is probably going on that direction with their social worth credit system experimentation.
Fiat currency has intrinsic value. If you wish to engage in economic activity then you must pay taxes to the government in whose jurisdiction you are earning income. Those taxes must be paid in fiat currency. If you engage in any economic activity withing the jurisdiction of some state, i.e. anywhere other than the high seas, then you must acquire the correct currency in sufficient amounts to pay whatever taxes you owe. Crypto is not accepted for tax payments in any jurisdiction, cannot be used to produce other goods and services, and has no more intrinsic value than baseball cards or beanie babies.
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