Reply to post: Re: Frozen by Tether

Poly Network says it's got pretty much all of that $610m in stolen crypto-coins back

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Re: Frozen by Tether

Most of your (perfectly valid) criticisms are not unique to cryptocurrencies.

For example, ask Northern Rock about "It collapses as soon as more people want out than in"

...and any central bank that practices "quantitative easing" about "It is constantly being inflated"

Actually, on that second point, you are aware that the "supply" for cryptocurrencies such as Bitcoin is finite, aren't you? And that, of those that don't have infinite supplies, the principle one, Ether, has recently implemented transaction fee "burning" to counter that very problem.

What I don't agree with is the name "cryptocurrency". They aren't currencies, and the name just leads to people erroneously drawing parallels between them and fiat currency.

Really, they are a store of "value" based upon the scarcity of some resource (like gold, or shares in Apple or a stamp collection). The resource in most cases is "proof of work", which is problematic when that work translates into power consumption. The snidey "why crypto is worthless", and "why crypto is a scam", or "why crypto is a bubble" comments are getting a bit tiresome though, especially when they seem to keep getting proven wrong. That last one I've heard reliably several times over the last 5 years, usually just before the price of Bitcoin jumps again.

I'm not foolish enough to put any significant money into crypto, of course. If I had done five years ago when I dabbled with mining (and it was still achievable without spending vast sums), I'd have multiplied my money many times over. Comments like yours, though, sound like sour grapes from people who wished they had. As it is, I'm now sat on a couple of grand's worth of "crypto assets" in return for a modest investment of about £150 in what was then a curiosity.

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