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Why are cryptocurrencies so much better than fiat currencies?

  • 01-09-2019 6:51am
    #1
    Banned (with Prison Access) Posts: 1,483 ✭✭✭ mr_fegelien


    Is it because there's no central bank involved in cryptocurrencies or what?


Comments

  • Registered Users Posts: 26,167 ✭✭✭✭ Wanderer78


    Easier to conduct criminal activities maybe, fiat isn't going anywhere!


  • Registered Users Posts: 17,260 ✭✭✭✭ kippy


    They're not.
    At least for the moment.


  • Closed Accounts Posts: 1,523 ✭✭✭ Sonny noggs


    Easier to manipulate and easier to make money from speculation?


  • Registered Users Posts: 6,026 ✭✭✭ grindle


    Privacy and censorship resistance if you want it (Monero - maybe it gets banned, who knows?). If you told your parents two decades ago that you'd happily give up your cash and your privacy for heavily monitored digital fiat, they would have thought you were an absolute spanner. Each generation further back would have thought much less of you as they lived closer to a time of foreign state control and war.
    Nowadays the same parents and their children have fallen for the "If you've got nothing to hide..." argument. If it wasn't so sad it'd be funny, but privacy used to be considered a valuable right.

    Programmable (primarily Ethereum) which means conditional contracts can be written to automate backroom tasks - this is what the businesses in the Ethereum Enterprise Alliance are most interested in and what I'd see as the most probable ubiquitous use for cryptos in the future, but the network needs to scale. There will be tasks within organisations where permissioned is "good enough" for the time being, but having a massively distributed network comprised of a thousand smaller networks (and so on) will lead to an economy of scale that reduces the cost below hosting your own permissioned network either within your own business or as part of a consortium, with privacy features being built out so your company's dealings or details aren't being publicised to the world unless you want them to be.
    Easier to manipulate and easier to make money from speculation?

    This is the primary use right now.


  • Registered Users Posts: 6,788 ✭✭✭ Grumpypants


    Is it because there's no central bank involved in cryptocurrencies or what?

    Try send your own money to some in a different country and you'll soon see.

    I bought a car in the UK it cost €400 to convert to sterling bank draft and it took a week for the bank to clear the funds.


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  • Closed Accounts Posts: 1,523 ✭✭✭ Sonny noggs


    Try send your own money to some in a different country and you'll soon see.

    I bought a car in the UK it cost €400 to convert to sterling bank draft and it took a week for the bank to clear the funds.

    Why didn’t you use cryptocurrency? Was it because very few businesses accept cryptocurrency because of its volatility?


  • Registered Users Posts: 6,788 ✭✭✭ Grumpypants


    Why didn’t you use cryptocurrency? Was it because very few businesses accept cryptocurrency because of its volatility?

    Because i was buying privately and the person asked for a bank cheque. If they asked for bitcoin I'd have used it.


  • Closed Accounts Posts: 1,523 ✭✭✭ Sonny noggs


    Because i was buying privately and the person asked for a bank cheque. If they asked for bitcoin I'd have used it.

    So cryptocurrency not viable (for that transaction)


  • Registered Users Posts: 6,026 ✭✭✭ grindle


    So cryptocurrency not viable

    Does it become viable every time it's used and then unviable every time somebody isn't offering their goods or services for it?

    Is toast unviable when you eat cereal instead? What kind of logic is this?

    "Well they didn't offer their car for BTC, ergo crypto is wholly unviable."

    Christ on a bike. I'm not defecating right now - apologies to everybody worldwide, shítting is now unviable.


  • Closed Accounts Posts: 1,523 ✭✭✭ Sonny noggs


    grindle wrote: »
    Does it become viable every time it's used and then unviable every time somebody isn't offering their goods or services for it?

    Is toast unviable when you eat cereal instead? What kind of logic is this?

    "Well they didn't offer their car for BTC, ergo crypto is wholly unviable."

    Christ on a bike. I'm not defecating right now - apologies to everybody worldwide, shítting is now unviable.

    I clearly meant for that transaction. Relax.


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  • Registered Users Posts: 6,026 ✭✭✭ grindle


    Sorry for picking you up wrong. Doesn't seem that clear to me.

    If people want to avoid volatility they can move to stablecoins if they want I guess. Still a moot point until a blockchain can scale without geting clogged & users held to ransom by transaction fees. On-ramping some guy who just wants to get rid of his car is just gonna end up with him selecting another buyer unless you sweeten the deal with a decent tip for his trouble, because setting up a Coinbase account or whatever to withdraw is definitely being a pain in the hole.


  • Registered Users Posts: 4,881 ✭✭✭ TimeToShine


    At the moment it's a glorified pyramid scheme, whereas in the past you only had access to those in your locality crypto gives you worldwide access to suckers for the pump and dump.

    Blockchain is the future and cryptocurrency as a decentralized form of currency makes perfect sense but as it stands it's just a flurry of people trying to get rich quick.


  • Registered Users Posts: 6,788 ✭✭✭ Grumpypants


    So cryptocurrency not viable (for that transaction)

    In the exact same way paying in cash wasn't viable, credit cards weren't viable, bank transfers weren't viable.


  • Registered Users Posts: 7,377 ✭✭✭ Chinese whospers


    Yet another thread where this OP asks a generic question and let Boards.ie do its thing with little or no further input. Not sure if he's doing it to help with his homework or not, but pretty sure he's laughing at ye.

    I’m in love with him and I feel fine.

    ^^^ although, I’m okay with getting back to winning ways, Jurgen.



  • Banned (with Prison Access) Posts: 1,483 ✭✭✭ mr_fegelien


    Yet another thread where this OP asks a generic question and let Boards.ie do its thing with little or no further input. Not sure if he's doing it to help with his homework or not, but pretty sure he's laughing at ye.

    No, I'm just learning. I've failed the LC and now I want to take the initiative to learn as much about finance and economics as I'll be doing a similar PLC course.


  • Registered Users Posts: 6,026 ✭✭✭ grindle


    No, I'm just learning. I've failed the LC and now I want to take the initiative to learn as much about finance and economics as I'll be doing a similar PLC course.

    Blockchain should at most be an "oh that's cute" hobby in that case. Accounting firms & companies around the world are still studying, building and testing it themselves alongside the open source development. If it turns out you have a real interest in it you might be able to swing a thesis about it once you're at that stage but right now it's early days. You should focus more on the standards of finance than distracting yourself with a tool designed to automate jobs or contracts.

    The Big Four certainly have interest in it but they're more likely to want capable programmers than researchers whose job it would be to create to-do lists and/or what-if lists for the software architects to ruminate on & design, then hand over to the devs to code and test.


  • Registered Users Posts: 470 ✭✭ manu2009


    Is it because there's no central bank involved in cryptocurrencies or what?

    E.g. for BTC Vs Fiat, along with being decentralised,

    -Censorship resistant
    -Backed by cryptography
    -Easily traceable via the public ledger
    -Limited supply
    -Can be moved globally faster and cheaper than fiat

    Fiat is no longer backed by gold, has an unlimited supply as governments print more when needed, loses purchasing power each year due to inflation and cash cannot be traced when used for illegal activities, bitcoin can.

    Bitcoin is not affected by inflation, far quicker and cheaper to move and removes the element of trusting a third party. IMO, these traits are much better than fiats, at the end of the day fiat is just a belief system and will eventually fail like it already is in countries like Venezuela and Argentina for example.


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