It’s also primarily a niche pseudo currency that’s arguably more regularly used for crime than legitimate purchases.
That’s true for cash as well, but that’s because of a few factors:
credit cards are more attractive due to rewards
sales tax makes buying things w/ cash a pain in person
you can’t use cash online, the closest you have are debit cards, but breaches make that unsafe
Cryptocurrencies can solve these problems. Since it’s digital, there’s nothing physical to carry around, online purchases are secure, and some vendors charge a lower fee for accepting crypto (e.g. https://based.win has a 10% discount for Monero). Since it’s distributed, you’re not stuck w/ 3-4 “networks” to process transactions, so transaction fees are generally lower (e.g. Visa/Mastercard/etc generally charge ~3%, whereas Monero charges a few pennies, regardless of transaction amount).
The reason it’s more often used for crime is because few vendors accept cryptocurrency as payment, mostly because demand is low. The more people that use cryptocurrencies for legitimate purchases, the more companies will accept it and the ratio between legitimate vs criminal transactions will go down.
I wouldn’t be surprised if cash is more often used for crime than legitimate purchases, mostly because cash is annoying to use. That doesn’t mean we should eliminate cash, it means we should make using it less annoying (e.g. include sales tax on listed price and not just calculated at checkout). I see cash used a lot more in states w/ no sales tax, and I hear Europeans use cash a lot more as well because VAT is included in the list price.
I know A LOT of people that still use cash and use it frequently for legitimate purchases.
There are also several places around here that are cash only shops, and several more that will charge you extra for using a credit card.
Cash is an official, government sanctioned, form of currency. Part of the appeal of cryptocurrencies is they’re a currency that’s outside of government management.
The problem with bitcoin in particular is volatility vs any other reference currency is insane. You might have enough to buy an expensive house one day, then a few months later you only have enough for a cheap car, then a few months later you can buy an even nicer house (or maybe not!). That’s just not practical for most people … I don’t think it ever will be practical for most people.
If we get a “stable coin” that requires low power draw … maybe? But is that really better than just using a credit card? Are online purchases really more secure? People get their wallet stolen in real life, getting your digital wallet stolen is something that can totally happen too. There’s no FDIC on your bitcoin, a bitcoin wallet isn’t a bank.
Crypto fans love to talk up crypto coins but … I just do not see them as a practical solution to much of anything. We would be far better off improving security of credit cards so you can manage your purchases in a system that’s more like PayPal’s where there’s a way to see “these are the things that are authorized to take money from you automatically” and “these are the things where we generated a one time token and this is how much you paid.”
The things I’ve seen about bitcoin at scale have also suggested it could never even come close to the transaction speed of VISA.
I just … I am so far from sold. I found Bitcoin when it was ~1 USD per bitcoin. I wish I’d bought just $50 of bitcoin back then and sat on it, but I don’t think bitcoin ever has soared because of its merits. It’s kind of like this AI hype right now, block chains have very limited practical usability.
That’s true for cash as well, but that’s because of a few factors:
Cryptocurrencies can solve these problems. Since it’s digital, there’s nothing physical to carry around, online purchases are secure, and some vendors charge a lower fee for accepting crypto (e.g. https://based.win has a 10% discount for Monero). Since it’s distributed, you’re not stuck w/ 3-4 “networks” to process transactions, so transaction fees are generally lower (e.g. Visa/Mastercard/etc generally charge ~3%, whereas Monero charges a few pennies, regardless of transaction amount).
The reason it’s more often used for crime is because few vendors accept cryptocurrency as payment, mostly because demand is low. The more people that use cryptocurrencies for legitimate purchases, the more companies will accept it and the ratio between legitimate vs criminal transactions will go down.
I wouldn’t be surprised if cash is more often used for crime than legitimate purchases, mostly because cash is annoying to use. That doesn’t mean we should eliminate cash, it means we should make using it less annoying (e.g. include sales tax on listed price and not just calculated at checkout). I see cash used a lot more in states w/ no sales tax, and I hear Europeans use cash a lot more as well because VAT is included in the list price.
I know A LOT of people that still use cash and use it frequently for legitimate purchases.
There are also several places around here that are cash only shops, and several more that will charge you extra for using a credit card.
Cash is an official, government sanctioned, form of currency. Part of the appeal of cryptocurrencies is they’re a currency that’s outside of government management.
The problem with bitcoin in particular is volatility vs any other reference currency is insane. You might have enough to buy an expensive house one day, then a few months later you only have enough for a cheap car, then a few months later you can buy an even nicer house (or maybe not!). That’s just not practical for most people … I don’t think it ever will be practical for most people.
If we get a “stable coin” that requires low power draw … maybe? But is that really better than just using a credit card? Are online purchases really more secure? People get their wallet stolen in real life, getting your digital wallet stolen is something that can totally happen too. There’s no FDIC on your bitcoin, a bitcoin wallet isn’t a bank.
Crypto fans love to talk up crypto coins but … I just do not see them as a practical solution to much of anything. We would be far better off improving security of credit cards so you can manage your purchases in a system that’s more like PayPal’s where there’s a way to see “these are the things that are authorized to take money from you automatically” and “these are the things where we generated a one time token and this is how much you paid.”
The things I’ve seen about bitcoin at scale have also suggested it could never even come close to the transaction speed of VISA.
I just … I am so far from sold. I found Bitcoin when it was ~1 USD per bitcoin. I wish I’d bought just $50 of bitcoin back then and sat on it, but I don’t think bitcoin ever has soared because of its merits. It’s kind of like this AI hype right now, block chains have very limited practical usability.