Note: I have never owned any cryptocurrency.
cryptocurrency has negligible value
1 Bitcoin is currently worth about AUD$108,000. The current total value of all Bitcoin is around $1.5 trillion USD; of all Ethereum, around $280 billion USD. If only I had some of this negligible value for myself!
Perhaps you deplore that rogue states and organized crime are among the holders of cryptocurrency. May I nonetheless point out that the majority of paid evil that has been done in the world, was and is paid for using old-fashioned national currencies?
At this point, crypto is just another medium of exchange. Like national fiat-based economies, the crypto economy extends from the realm of ordinary practical transactions, all the way up to a realm of "whales" whose cryptic movements decide whether the currency is going up or down in value. Yes, the commanding heights of crypto must contain some sinister elements. Meanwhile, traditional currency and commodity markets are shaped by decisions of war and dictatorship, and I would guess that 99+% of the wealth of the world's oligarchs is held in assets other than crypto. If you want to clean up the Augean stables of world finance, crypto probably isn't very high on the list.
I use cryptocurrencies to make international money transfers without any of the bullshit, risks, or fees of banks.
They do make a good way to exchange between different currencies in countries where that would otherwise be very difficult/illegal.
In general though, blockchain is a brilliant solution to a particular problem (decentralization). For most things having a trusted central system of record is a better solution.
I feel that way about currency too. 🤷🏻♂️ Then again, outside of my 401k, I don’t have any financial investments, so I’m a terrible source of financial advice.
I have noticed that many people in the rationalist community seem to like cryptocurrency. This seems odd to me, considering how many rationalists also care about effective altruism. Cryptocurrency seems unethical to me.
As far as I can see, cryptocurrency has negligible value. It solves virtually no problems that warrant solving and is mostly useful for criminal activity. Cryptocurrency does cost a lot of electricity, though, so it looks like net negative utility to me.
I understand that you can make money off Bitcoin and other major cryptocurrencies, but this seems to me like unethical speculation. It is a "bigger fool" scam - technically not a pyramid scheme but ethically equivalent. You buy a Bitcoin and hope to later sell it at a higher price to a "bigger fool", who in turn hopes to sell it to a third fool - while creating nothing of value.
I gather that some people think of cryptocurrency as a political project, a kind of money supply that is out of government control. This project seems misguided to me. If cryptocurrency does become a useful tool against government control, then it is guaranteed to be co-opted by oligarchs who will probably be worse than governments because we cannot vote them out.
Am I missing something important here? Those of you who like crypto, could you please explain where you think I am wrong?
Thanks!