this post was submitted on 19 Jun 2023
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Yes, I know that it still exist, and yes, decentralized currency which utilizes distributed, cryptographic validation is not actually a strictly bad idea, but...

Is the speculative investment scam, which crypto substantially represented, finally dead? Can we go back to buying gold bars and Pokemon cards?

I feel like it is, but I'm having a hard time putting my finger on why it lost its sheen. Maybe crypto scammers moved on to selling LLM "prompts?" Maybe the rug just got pulled enough times that everyone lost trust.

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[–] davehtaylor@beehaw.org 35 points 1 year ago (21 children)
  • As an actual currency, it's functionally useless. Even if every retailer on the planet were to accept it, the overhead for making the transaction is just a non-starter

  • Because of that, it's entirely just funny money. Even further, since it's entirely a virtual asset, if the power goes out, your wallet goes with it

  • The environmental impacts are horrifying. This fact alone means that it should all be eradicated. Destroying the planet for Internet funny money isn't an acceptable proposition

  • For a decentralized currency, people sure do love centralizing under large exchanges, and the massive losses, thefts, fraud, etc. have shown that no matter how "decentralized" it's supposed to be, it's still susceptible to the same bullshit as any other currency

  • Its high profile association with grifters, scammers, malware, and dark web shenanigans has completely soured its image in the public mind

  • It's entirely a speculative investment scam now. There's no way to decouple it from that.

[–] liminis@beehaw.org 15 points 1 year ago (5 children)

Correct me if I'm wrong, but since ETH moved to a proof of stake model rather than proof of work (i.e. "mining"), isn't its environmental footprint now a fraction of the wasteful behemoth it was previously?

(Though I 100% agree given the 'gas fees' (transaction costs), it's still absolutely useless as an actual currency.)

[–] xenos@kbin.social 1 points 1 year ago

You're right about the environmental footprint - proof of stake dropped the energy consumption by 99.95%

Ether (ETH) was never intended to serve as a digital currency. it was only meant to be the fuel or incentive for computational tasks on the Ethereum network. An L2 like Optimism or Arbitrum runs on top of Ethereum and facilitates transactions that are significantly faster (tens of thousands of transactions per second), for a fraction of the cost (pennies or fractions of pennies)

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