Crypto was promised to be the bane of fiat currency, evil central banks and centralised control over financial transactions. The more I understand it, the more it seems technically feasible and very much possible but practically difficult due to opposing forces.
The globally coordinated push for CBDCs (central banking digital currency) by central banks, government regulations on decentralised currencies as well as the loss of trust of investors and public in crypto seems to have put power right back into the hands of the already too powerful.
Will we ever see a world where currency isn't controlled by the powerful central banks and governments? Is it possible for decentralised currency to make a comeback at all?
Pick your poison- Fiat currency controlled by central banks backed by private equity and rich people Vs Cryptocurrency controlled by tech bros backed by private equity and rich people
Both are bad. More inclined towards (2) than (1) because (1) has centuries old power dynamics and structures built in that are hard to overcome. (2) would atleast give us a shot at overcoming some of the power structures and equalising, although this too comes with a small chance of success.
@Elon_Musk well put
One thing that continues to bug me is when it'll go from being an 'investment' instrument to get rich fast, to actually being a currency that is used for at least a few transactions a month/year
That hasn't happened at all. And I'm sure governments will continue to be a hindrance in that happening.
Wonder if someone has any data around this?
+1, really interested in understanding this more.
Sir, Crypto is stupid when it comes to transactions. Because it doesn't differentiate between a 1Rs transaction vs 1Crore Rs worth transaction. It treats both as the same, needs the entire Blockchain to authenticate both and requires the same effort, energy and latency to get settled. That is the big drawback.
If I am paying you 20Rs, its inconsequential, but if I pay you 5Cr, I would want the bank to OTP the shit out of me, get their local branch manager to be physically present, need the super expensive stamp paper and the entire presence of 2-3 regulators to oversee so that either of you and me doesn't back out.
What's money transactions anyway? Transferring a store of value that the society has from one to the other. Fiat does it better than Crypto due to sheer customisation of the process.
It seems to not have found credible use cases. The technology is still pretty sound IMO
No.
Fundamental understanding of crypto as a currency is wrong , it is an entirely Digital asset class .
Crypto asset class is at very nascent stages and in 10,15 years we will see crypto products and services use by everyone of us.
Why do you think it is not worthy of being a currency? We came from using salt and pebbles to paper money as currency. Volatility can be resolved (atleast for 1 out of 1000s of cryptocurrencies).
Go to coingecko , check category section, there are different categorisation of crypto - Layer 1 , DeFi, CEX tokens, etc. Every legit crypto asset falls under either of these categories. One example is Ethereum under layer 1 , which has ETH token where applications are under on top of Ethereum network.
“Centralised control over financial transactions” - I think the question is why the governments would want to lose any of it
It seems like crypto was mostly used as currency on the dark web, NFTs, etc.
None of the mainstream use case.
It’s a very ideal end case, but some ideals you don’t ever get to
I understand the pessimism in your thoughts. But we've had sufficient examples of revolutions in history where govts and the elites have had to let go of power - from our own independence struggle to suffrage movements. I'm hopeful that we see the optimistic scenario play out for atleast 1 cryptocurrency (and also AI too on a sidenote).
Now that the web3 bubble has burst, what do you think is the biggest issue that is harming the prospects for serious cryptocurrencies?
Bank account seizure shows how banks are chamcha of govt.
It is important that, people should have self custody of their bank account.
Very important concept of we are going digital first. Wallet is digital first concept,
Digital bank...
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Thanks for sharing, looks interesting data. In 1971, the gold standard was dropped and floating or Fiat currency was ...
