This was shared by another user on here in a thread about bitcoin. After talking to a bitcoin hyper over the weekend I thought I’d post it and maybe get other people’s thoughts.
I was really excited about Bitcoin and I first started following it in 2013 when I held more libertarian views, but by 2016 it became pretty clear that the technical challenges facing Bitcoin would not be readily solved. I also started realizing just how much fraud and dumb money was present in the crypto ecosystem as I read countless articles about textbook market manipulation taking place with impunity. Then, I began to think the premise of an unregulated decentralized currency was a terrible idea for honest participants. So far, I’ve been convinced that the fraud and abuse that occurs in the absence of an authority is drastically more damaging than the potential benefits can make up for.
Market manipulation and fraud are not unique to cryptocurrencies, of course, but most of the demand for cryptocurrencies is people trying to make a quick buck with little interest or regard for the actual technology and tokens. Most of the top cryptocurrencies worth 10s of billions of USD each have trivial real-world use cases, they are primarily just speculative investments. At least in stock, bond, and other securities markets there is real-world value attached to the securities being traded; so far most cryptocurrencies have little practical value other than fraud and illegal transactions. Centralized payment services deliver superior performance in every single metric that matters for law-abiding users of a currency.
I’ve ridden the wild ups and downs of crypto for the better part of a decade, the bubble will burst again and when it does a bunch of poor people and foolish speculators will lose most of the Monopoly money they’ve been playing with. Whether Tether fraud stops the gravy train, or it stalls and crashes on its own, it’s almost certainly going to crash hard…again.
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