The vast majority of “real” currencies are fiat currencies and don’t have inherent value or use either.
US dollar hasn’t been backed by gold since 1971, for example.
The only reason money has any perceived value at all, is because it’s collectively agreed to have some value. Just like crypto currencies.
But this is actually why crypto isn’t a real currency: we haven’t collectively agreed to value it, or at least not in any way that makes it useful as a medium for exchange. Ironically it can’t possibly become a proper currency while speculators are making its price so volatile. The very act of investing in it is making it worthless.
But there’s so few uses of actually buying things with crypto. People don’t use it as a medium of exchange outside of illicit goods and money laundering. We’re more than a decade into this and using crypto to buy a pizza is still a novelty.
A major proof of this is that FTX collapsed and took a chunk of the crypto market out with it. The market at large shrugged this off. If it were actually linked in to the broader economy, then it would have had similar ripple effects to a major US bank failing.
I, personally, use crypto to do art commissions (I’m an artist) and to pay my VPS’s rent. Neither is an illicit good or related to money laundering.
And, honesty, it’s pretty great, compared to alternatives.
Last time I’ve used PayPal, it decided to withhold the funds for a month, for whatever reason. Plus, the transaction fee was about a dollar.
Transferring the same amount of money via Monero is guaranteed take only about a minute or two to process, since a transaction in that system would never get withhold, plus the processing fee would be about a hundred times smaller.
In the EU they’re getting a digital euro which allows them to avoid bowing down to Paypal, Payoneer, and all the services interlinked with them (e.g. Patreon) - the ancillary services can even offer digital euro payouts instead, too. So as long as what you’re doing is legal, you can break the Paypal/Payoneer terms of service as much as you want and avoid their privately enforced authoritarianism that goes beyond the scope of the law for whatever reason. So those problems are being solved as we speak, depending on where you live.
Unless they are going to implement a cryptocurrency with centralized minting (essentially giving themselves both as much and as little control over the digital currency as they have over physically printed money), it doesn’t seem that much different from what we have already. Just because it’s going to be a new system, doesn’t really mean it not going to have issues with false-positives suspending regular transactions or fees that are higher than they need to be.
The vast majority of “real” currencies are fiat currencies and don’t have inherent value or use either.
US dollar hasn’t been backed by gold since 1971, for example.
The only reason money has any perceived value at all, is because it’s collectively agreed to have some value. Just like crypto currencies.
But this is actually why crypto isn’t a real currency: we haven’t collectively agreed to value it, or at least not in any way that makes it useful as a medium for exchange. Ironically it can’t possibly become a proper currency while speculators are making its price so volatile. The very act of investing in it is making it worthless.
But there’s so few uses of actually buying things with crypto. People don’t use it as a medium of exchange outside of illicit goods and money laundering. We’re more than a decade into this and using crypto to buy a pizza is still a novelty.
A major proof of this is that FTX collapsed and took a chunk of the crypto market out with it. The market at large shrugged this off. If it were actually linked in to the broader economy, then it would have had similar ripple effects to a major US bank failing.
I, personally, use crypto to do art commissions (I’m an artist) and to pay my VPS’s rent. Neither is an illicit good or related to money laundering.
And, honesty, it’s pretty great, compared to alternatives.
Last time I’ve used PayPal, it decided to withhold the funds for a month, for whatever reason. Plus, the transaction fee was about a dollar.
Transferring the same amount of money via Monero is guaranteed take only about a minute or two to process, since a transaction in that system would never get withhold, plus the processing fee would be about a hundred times smaller.
In the EU they’re getting a digital euro which allows them to avoid bowing down to Paypal, Payoneer, and all the services interlinked with them (e.g. Patreon) - the ancillary services can even offer digital euro payouts instead, too. So as long as what you’re doing is legal, you can break the Paypal/Payoneer terms of service as much as you want and avoid their privately enforced authoritarianism that goes beyond the scope of the law for whatever reason. So those problems are being solved as we speak, depending on where you live.
The “Criticism and risks of the digital euro” section on Wikipedia outlines my concerns about such a system pretty well.
Unless they are going to implement a cryptocurrency with centralized minting (essentially giving themselves both as much and as little control over the digital currency as they have over physically printed money), it doesn’t seem that much different from what we have already. Just because it’s going to be a new system, doesn’t really mean it not going to have issues with false-positives suspending regular transactions or fees that are higher than they need to be.