Ex-bank CEO gets 24 years after falling for crypto scam, causing bank collapse - eviltoast
  • stonerboner@lemmynsfw.com
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    3 months ago

    What is needed before crypto can actually be useful:

    • needs to be as easy to use as real currency
    • needs to be able to be spent freely on basic necessities
    • recourse for fraud
    • recourse to recover lost keys instead of losing funds permanently
    • protection against market manipulation
    • widespread merchant adoption
    • address liquidity concerns
    • actionable process to protect from illegal activities
    • MASSIVE environmental protections- crypto was worse for the environment 4 years ago than AI is projected to be in 2027

    There’s more, but I won’t bother as the above issues are more than enough to confirm that crypto is a scam.

    • sugar_in_your_tea@sh.itjust.works
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      3 months ago
      1. it’s basically as easy as credit cards - you just scan a QR code or copy/paste a number
      2. unfortunately, not something cryptocurrencies can solve, that’s on the vendors
      3. it has the same protections as cash
      4. again, it has the same protections as cash; the user can, of course, backup their keys however they want, so it’s actually better than cash
      5. getting used more would solve this, in the same way that it’s “solved” for cash; with enough transactions, speculation becomes a small part of it (and yes, people speculate on currencies)
      6. this is the same as 2, but I guess an extension of it? If 2 is solved, this will be solved.
      7. and what concerns are those? There are plenty of respected exchanges (Kraken is probably the best), and you can use those ATMs if you want local FIAT (high fees though)
      8. again, it has the same protections as cash; and whether it’s used for illegal activities doesn’t concern the average person, just like it doesn’t for cash
      9. that’s a pretty broad brush you have there; Monero is actually pretty decent since it discourages speculation, and Ethereum is proof-of-stake (so no mining farms), so you can use that instead of Bitcoin as your backup coin if that really concerns you.

      If you think of cryptocurrencies as the same as cash, just digital, with all the same protections as physical currency (i.e. physical possession), then it makes a lot more sense. You shouldn’t be putting your life savings into any cryptocurrency IMO, you should be only using it for spending, like a checking account. Keep your savings somewhere else. In my mind, cryptocurrencies are ready today to replace a checking account for some transactions, but it’s not ready to be your primary checking account, nor is it ready to be used as savings.

      • stonerboner@lemmynsfw.com
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        3 months ago

        Saying crypto is pretty much the same as cash is disingenuous.

        You don’t need to make an account to spend cash. You don’t need to pay fees to give cash to someone else. You don’t need to pay fees to process cash transactions. You don’t need an internet connection to acquire or spend cash. Cash transactions are executed in person, where mistakes can be reversed. If my personal info is compromised, my cash on hand is safe. Cash is generally much more stable, and is generally accepted everywhere.

        And let’s address a biggie- cash doesn’t destroy the earth, unlike crypto. For all the protest I see about AI’s energy consumption, crypto was worse in 2022 than AI is projected to be in 2027. Let that sink in.

        • sugar_in_your_tea@sh.itjust.works
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          3 months ago

          Ok, I should clarify. Cryptocurrencies are like cash, but digital. Like cash, there’s no tracking, minimal protections (you’d file a police report like you would w/ cash), etc. You do need internet access to process the transaction, but that’s the same for every other form of digital cash (e.g. debit/credit).

          The only reason you’d ever need an account anywhere is to use a public exchange. You can trade directly P2P with your own generated key if you want (i.e. you can hand someone $200 and they’ll transfer some crypto to your wallet address), and the only requirement is to have some kind of wallet to manage your key (also technically optional, but looking up your balance would suck w/o a wallet). And the only reason you’d need an account at all is because of government, which is there to reduce tax evasion and money laundering.

          So if you think of it like a privacy-respecting checking account, it’ll make a lot more sense.

          You don’t need to pay fees to process cash transactions.

          Technically true, but generally speaking your cash transactions are the same price as debit/credit transactions, so a portion of your payment goes to subsidize those. Some places have a cash discount, but that’s pretty rare. Likewise, some places have a crypto discount, which at least for based.win, more than compensates for the crypto transaction fee.

          Cryptocurrencies bake in the payment processing network, and on average, Monero’s fees (<$0.01) are much cheaper than debit fees, which are much cheaper than credit card fees (usually around 3%).

          Cash transactions are executed in person, where mistakes can be reversed.

          The same goes with cryptocurrencies, you can do transactions in person if you want. Depending on some factors, it can take a little while for transactions to finalize (but generally shorter than debit/credit transactions), but you’ll see the updated balance pretty much immediately. Yes, you’ll need an internet connection, but that’s the case for pretty much everyone these days, and I think only one party needs the connection to process the transaction.

          If my personal info is compromised, my cash on hand is safe

          Same with your crypto. As long as I control my wallet, every exchange could be compromised and my crypto would be 100% fine. As long as you never upload your keys anywhere, it can only get compromised through physical theft, just like cash. But unlike cash, if I have a backup key, I can potentially move my cash before the thief has an opportunity to, and if my key is locked, they can’t access it w/o breaking the encryption.

          Cryptocurrencies can be as secure as you want them to be. If you follow the 3-2-1 principle of digital backups, you should be fine:

          • 3 copies on
          • 2 different types of media (e.g. a paper copy in a safe at home) with
          • 1 off-site

          If you upload your keys somewhere, encrypt them with a password you know, and consider having backups of that password as well.

          Cash is generally much more stable

          That’s absolutely true, but that’s because it’s so broadly used. This is a chicken-and-egg problem. Cryptocurrencies are primarily used for speculation because they haven’t been adopted by vendors, and vendors won’t adopt it because it’s too volatile due to speculation.

          That’s why I like Monero. It makes mining unprofitable, so the only people mining are those who care about the network and are willing to take a net loss. What this means is that there’s a lot less speculation, so prices seem to be a bit more stable (esp. over the last 2 years or so). But if you’re using it as regular spending money, fluctuations will be relatively small since you’ll only be holding it for a couple weeks or so. Since there are only a handful of vendors that I currently use with it, I put in much less than $100/month, so if it goes up or down by 5%, it really doesn’t impact me all that much. Bigger moves will generally happen over a longer term than regular expenses, so it doesn’t really matter.

          As more people use cryptocurrencies for regular transactions, prices should stabilize. It’ll probably stabilize to be inflationary, so maybe it will become a good store of value in the future, but for now, I only recommend it for short-term storage for regular expenses (e.g. a VPN or online shopping).

    • EngineerGaming@feddit.nl
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      3 months ago

      Processes to protect from illegal activities? That edges into the same territory as Chat Control. You cannot make a backdoor “just for criminals”. And even if you somehow could - the definition of a criminal sometimes is “searched an abortion” or “donated to a dissident”, so it would defeat the purpose.