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What you're saying is absolutely nothing new. There's a lot of FUD and confusion in this thread (no surprise) but this has been apparent from the very beginning

by tepe1 9y ago

What you're saying is absolutely nothing new. There's a lot of FUD and confusion in this thread (no surprise) but this has been apparent from the very beginning. "A Proof of Stake Design Philosophy" [1] makes the essential nature of cryptoeconomics very clear. In short: (a) all currencies are social phenomena (b) all the fancy math does is replace the "men with guns" that protect physical currencies -- that is, currencies must be economically defensible and (c) what actually gives real-world currencies their value is the presence of a tax authority who creates the currency and then demands it back at some later point [2]. PoS creates an absolute demand for the currency; it is nothing more than a formalization of currency power. > So, aside from being a geeky toy and new market for gambling, where has cryptocurrency actually succeeded? A better question is -- why are there so many currencies to begin with? Why isn't there a single currency that everybody uses? Once you understand the answer to this question the value of cryptocurrencies become clear. You said it yourself: currency is inherently a contextual and social value construct. Different communities have different values. Communities that develop currency power will always triumph over communities that don't because they can collaborate more effectively. Currencies don't "succeed," communities succeed -- and they do this partly by leveraging currency power. The answer to your question is right in front of you but you just don't want to see it: the cryptocurrency development communities themselves are already wildly successful and have demonstrated the ability to raise enormous funds and collaborate effectively. [1] https://medium.com/@VitalikButerin/a-proof-of-stake-design-philosophy-506585978d51 https://medium.com/@VitalikButerin/a-proof-of-stake-design-p... [2] https://www.youtube.com/watch?v=boHE_dR159k https://www.youtube.com/watch?v=boHE_dR159k

edward_monahan 9y ago
> A better question is -- why are there so many currencies to begin with? Why isn't there a single currency that everybody uses? Groups of people live in bordered countries and like to have their own currencies for their own countries. There is, it's the United States Dollar. Why everyone uses USD, either directly or as a metric, is outside of the scope of this discussion. Your argument about communities is where this all falls apart -- as I already stated, at some level you need the threat of violence to enforce the property rights necessary for any kind of personal wealth to flourish. Cryptocurrency doesn't solve this issue, or even approach it. It just creates a new virtual asset, backed by nothing and valued by faith, on top of an established system of community and law.

by tepe1 9y ago

edward_monahan 9y ago

> A better question is -- why are there so many currencies to begin with? Why isn't there a single currency that everybody uses? Groups of people live in bordered countries and like to have their own currencies for their own countries. There is, it's the United States Dollar. Why everyone uses USD, either directly or as a metric, is outside of the scope of this discussion. Your argument about communities is where this all falls apart -- as I already stated, at some level you need the threat of violence to enforce the property rights necessary for any kind of personal wealth to flourish. Cryptocurrency doesn't solve this issue, or even approach it. It just creates a new virtual asset, backed by nothing and valued by faith, on top of an established system of community and law.