Ep 8: Cryptocurrencies are a Scam.

The word “Crypto” has been co-opted, and it now refers to something which is a fantasy at best, and a scam at worst.

The Crypto's you see floating around everywhere are not an answer to anything. They're a distraction at best, and at worst a bigger scam than the existing, legacy financial system; because they're perpetuated by entitled morons who think “they’re the right people to make the right choices” just because they can write some code..

They’re no different to the politicians and bankers of today, and if anything, less experienced & more incompetent so instead of working in the old guard, they spin up their own instances of the same garbage; only with a different smell.

They miss the entire point of Bitcoin; which is to have an autonomous network deliver a guarantee of rules that are unchangeable - like the constitution of America, but orders of magnitude better.

Bitcoin stands against everything that "crypto's" stand for.

Bitcoin lowers time preference, it ensures nobody is in charge, it gives us a level playing field, and it fundamentally adjusts the base incentives of society. Therein lies its power.

Crypto is just a bunch of young, inexperienced nerds who think "they know better".

They don't seem to understand Bitcoin’s raison d'être. The idea that the supply is fixed, the parameters are fixed and the rules of the game are the same for everyone - and if anyone tries to change them to their own advantage (at the expense of everyone else) they get booted off (ie; forked off) the network.

That’s the edge.

Shitcoins (all altcoins), ICOs, Tokens and now "Decentralized finance" (aka; DeFi) is just a replication of the existing system, only on a more fragile network, with less checks & balances.

It does nothing to re-stabilise society or change behaviour. It just perpetuates the existing fraud, and makes it such that catastrophic failure is even more likely.

I tweeted on this (link below), and obviously discuss it further in this video.

https://twitter.com/AleksSvetski/status/1278684910962782208

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