What's the critique on cryptocurrencies?

What's the critique on cryptocurrencies?

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For one thing, they're deflationary, meaning they give the rich more incentive to hoard and sit on it since they generate value over time.

Ethereum seems similar in philosophy to market socialism.

Thanks for the input. It's nice to see a refreshing opinion since places like r/socialism supports cryptocurrencies.

ethereum is more inflationary than bitcoin but I think that after a certain point more ethereum will not be created. Like bitcoin. So it will eventually be deflationary. Correct me if I'm wrong.

With the way it's set up right now, yes, that is how it will work out. The block time will increase exponentially while the mining reward does not increase proportionally. Therefore, supply will top out at 100 million. IDK if they can change the protocol to avoid this, and it's a little strange to me that they wouldn't have anticipated this and linked the two factors in a way to avoid both deflation and inflation.

Wrong about Ethereum. One of the critiques about it is that there is no end to it. Hence, most bitcoin enthusiasts see no value in it. Bitcoin does have a limit, however. It hasn't reached it yet.

It's filled with fucking annoying autists I'd like to pee on.

I'm not well versed on them, but aren't they capitalist wastefulness exemplified?

Personally I don't see the point in a currency that doesn't have some inflation. Deflation encourages hoarding as opposed to circulation. Making bitcoin more of a commodity rather than a currency. Similar to gold. A non-renewable mineral.

The whole point of a currency is to maintain a balance of stability of purchasing power and circulation. If people are hoarding, you need to mine more coin to encourage people to stop hoarding. If the prices of goods and services is going up relative to the coin, you need to mine less coins.

Right now since bitcoin's supply is set, the only thing that determines inflation and deflation are the booms and busts in the market. When people are tired of throwing money at bitcoin, the price drops and inflation happens. Bitcoin will sometimes crash like 33% overnight like it's nothing. On the other hand, bitcoin can rise like 10% in a day if autists and autistic liberals (libertarians) hoard their bitcoins because they think bitcoin is going to go to $10,000 one day.

But Ethereum has this limit in practice, if not in theory. See my post
Besides, they're only useful from an accelerationist-communist standpoint, and that only works if you have a full action plan for crashing corporate hegemony through a novel form of workers' cooperatives to drive down overhead costs in whatever fields it touches yes, I'm referring to cybernetic planning
On their own, there's no reason whatsoever for socialists to support them - they're just an unfortunate fact of life because they could eventually make ancapistan a reality (or at least a possibility) if left to their own realities.

I have investments in bitcoin myself. And made a considerable amount of money day trading bitcoin. I bought-in when bitcoin was pretty cheap (though I don't have a big investment into bitcoin, at least as of yet. Otherwise I'd be financially independent for life.) However I think bitcoin is a bubble and long overdue for a large correction (it had a slight correction recently).

In order for bitcoin to have value, people have to continue to throw money at this thing. People have to obtain that money from somewhere. Where is this money gonna come from? Wages for workers are not keeping pace with inflation. So if you want the price of bitcoin to go up, you need bourgeois with lots of money investing in it. You need whales. As the popularity of blockchain goes up, the trading volume will also go up. However whales are not investing in bitcoin out of the goodness of their own heart. They are doing it to make money. So if there isn't a greater fool whale out there in the future who will buy their bitcoins off them for a profit, the house of cards collapses.

You can't just keep counting on a greater fool indefinitely. Eventually you're going to run out of demand and then some marks will be left holding the bag. This is why the real estate bubble collapsed. Real estate agents got so fucking greedy that they were giving loans to people who couldn't remain solvent in case of a crisis.

There's also the factor that bitcoin's share of the crypto-currency market cap has decreased significantly recently because other competing coins like ethereum, litecoin, ripple, etc. are stealing market share. So bitcoin is not bullet proof. Bitcoin is still king. But not like it used to be.

So you didn't got any useful physical object from Bitcoin.
Fuck. What a waste.

bitcalc.beepboopbitcoin.com/
play this game and you will understand

i just usse it to buy drugs online

It’s a bubble, that’s going to burst.

I-I'm an annoying autist with a nasaly voice, c-can you pee on me?

You put masses of power into solving meaningless computer problems to get virtual coins that serve the same purpose as normal currency and the cost of transactions (the most important thing of a currency) is massive as well.

But isn't etherium not a cryptocurency but a system for creating crypto currencies? Couldn't you just use etherium to make time-labour vouchers and a mutual credit system?

That was a waste of life/time. Perfectly summed up what Bitcoin is.