Cryptocurrency Is Evil
It isn’t hard to gather intuitive distrust towards cryptocurrency. If you haven’t formed an opinion yourself, here’s why I’m skeptical.
Instead of badly rephrasing more distinguished people covering this topic, I highly recommend going through just the two sources below for a broad and clear explanation why cryptocurrency is evil:
- Nouriel Roubini’s no-fuss keynote at CoinGeek Zurich;
- Nassim Nicholas Taleb’s damning "Bitcoin, Currencies, and Bubbles" whitepaper.
The tl;dr would be something like this:
- cryptocurrency is not cryptographic in the sense that it doesn’t involve confidentiality;
- cryptocurrency is not currency, no goods or services are fixed to crypto price;
- cryptocurrency is not a store of value, it’s inherent value is zero at best;
- cryptocurrency is not a hedge against market crashes, in fact it’s more vulnerable to market motions than any other store of value or currency;
- buying cryptocurrency is not investment, it’s more akin to gambling or an enormous Ponzi scheme;
- cryptocurrency enables illegal activities: it’s very popular amongst drug dealers and other criminals, or even terrorists;
- in fact, cryptocurrency single-handedly enabled a new form of extortion: ransomware;
- cryptocurrency is prone to hacking since transactions are not reversible;
- if successful, cryptocurrency is a gigantic wealth transfer to early adopters, extracting massive rent from their hold over a percentage of available coins;
- blockchain as an underlying technology hasn’t found a killer app yet, there is no use for it that couldn’t be performed without it, often cheaper and with better performance;
- proof-of-work cryptocurrency is terribly inefficient and environmentally harmful.