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Comment Re:WTF is "Coinbase"? (Score 1) 133

I'm NOT a Luddite, but... Which of course means I'm about to say something that will require a lot of clarification to avoid that accusation, eh?

I'm dubious that there is a legitimate need for cryptocurrency. I am NOT rejecting the broader idea of electronic currency. Apart from the convenience, which has some legitimate (though usually overrated) value, the special (narrow) thing about cryptocurrencies is the extra privacy that some people want. If using cryptocurrency makes you MORE vulnerable to intrusion into your privacy, then mission NOT accomplished. Even a YUGE FAIL, as #FatNixon would say. Of course you think you have a legitimate need for truly anonymous payments, but that's what all the criminals say, even if we stipulate that you, personally, aren't one.

Now for the big rub: Competition, as in there ain't any. There are an infinite number of possible cryptocurrencies that can be created, and no real value to any of them. There's slight prestige (which is supposed to have some value) attached to being the first one with some feature, but no way to prevent the creation of an infinite number of other cryptocurrencies that have that feature and any others you like.

That's the problem with infinity. Whatever value something might have, if you get to divide that value by infinity, you get nothing of real value. No one gets to carry an infinite wallet for the infinite sums you need to play that game.

The speculative value of cryptocurrencies is something completely different. The crucial problem here is actually best described as a Venn diagram. Some of those speculators were legitimate gamblers who just hoped to make a lot of easy money out of nothing, but there is an intersection with some actual criminals (especially tax evaders), and quite probably even including the thieves who ran off with the fake money that started this entire fiasco. Kind of hilarious if this extra bit of greed leads to their arrests, eh?

Now what about the LEGITIMATE use of personal information to build an EPR (Earned Public Reputation) that would help us deal with each other on fairer terms? Don't hold your breath, especially waiting for Slashdot to improve.

--UCiS--

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