this post was submitted on 28 Jun 2022
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Finance

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24 banking problems solved by cryptocurrency that Bruce Schneier does not know about (thefreeworld.noblogs.org)
submitted 2 years ago by debanqued to c/finance
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When someone says “Cryptocurrency is a solution looking for a problem”, this is the article to show them.

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[–] remington 5 points 2 years ago (1 children)

I will never endorse nor recommend cryptocurrency as a sound investment. In my opinion, from all that I've read about it, I believe cryptocurrency is one of the largest scams of our modern time.

A close friend of mine, that I've known for thirty years, is a CPA and has a master's degree in finance. I've double checked with him over the past decade about all of this. If he believed cryptocurrency was a good investment, then he would be doing so and advising me to do so as well.

He hasn't done either.

[–] debanqued 2 points 2 years ago* (last edited 2 years ago) (1 children)

I will never endorse nor recommend cryptocurrency as a sound investment.

Cryptocurrency was not supposed to be an “investment” in the first place. Like they say in Europe “if you treat houses like stocks, they will behave like stocks”.

Anyway, I could almost agree with you on the /investment/ comment, but then you said “never”. Consider fiat money. GBP may be a sound investment to diversify and hedge against USD or EUR. But things change. Maybe one day the GBP becomes very unstable (as btc is today). Would you then at that moment say “I will never endorse nor recommend GBP as a sound investment”? It’s a sound investment when it’s stable, and a dicey investment when not stable.

The article of the thread does not propose cryptocurrency /as an investment/. This is about cryptocurrency as an alternative to (unethical) banks. When you oppose the only alternative to unethical banks (considering the future of cash is endangered & bartering is impractical & unscalable), you effectively endorse unethical banks.

cryptocurrency is one of the largest scams of our modern time

That’s like saying “cheques are a scam” or “wire transfers are a scam”. They are certainly not a scam. But scams can be designed that exploit weaknesses in any of the three instruments (cheques, wire transfers, cryptocurrency transactions).

[–] Zapp 1 points 2 years ago (1 children)

Credit Unions exist, though.

[–] debanqued 1 points 2 years ago

The article uses “banks” in the generic sense. Some of those issues apply to credit unions as well, particularly points 4, 6, 12, & 13.