Reality Check: Is Crypto Backed by “Radical Transparency”?
Unless you have been hiding under a rock, you've been hearing about cryptocurrency, Bitcoin and dozens of other coins, as either being the future of currency or causing the biggest bubble ever. One of the biggest criticisms of cryptocurrency is that it's just made-up money, that it's not backed by anything. But is that true? This is a Reality Check you won't get anywhere else.
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What a crypto is backed by needs to be looked at case by case. The bitcoin protocol is backed by the amount of energy that is consumed for it's maintenance - which makes it pretty solid.
It's also important to recognize with regard to currency that its value is really created by the community that accepts it as a means of exchange and/or store of value. That's why both Bitcoin and Ethereum have such a large market cap - they both have a large community of support. This is also why I am more and more interested in Steem since it appears that the community continues to grow as more and more people gravitate to a decentralized social ecosystem.
cyrptocurrency is soo young, compared to stock market $70 trillion market cap. And not all crypto are scam, there's a crypto that is backed by a proof of work, proof of brain . The Government can print whatever they like if they cannot figure out how to improve their economy.
I agree totally with you
Couldn't we also agree that it doesn't necessarily need a backing at this point in time. For instance, if we compare it to other commodities that are traded and scarce (Rookie Baseball Cards, Coins, Famous Works of Art), those do not have any backing other than the fact that there is a market for them.
If there is a demand there will be value. Totally agree.
The people can decide the value for once.
At the end of the day crypto is backed by the investment that people have made into it and the value of all apps that have been build on top of it.
Please do also bear in mind that the market cap only reflects the last investment made, so value of total investment is much lower than the actual market cap.
Exactly. The blockchain will help us do away with the need for a government's claim of "full faith and credit."
True, but there is always the debate about blockchain vs crypto currency. Most people speak favourably of the blockchain, but there seems to be quite a divide between the FOR and AGAINST in terms of crypto as a currency and form of monetary storage.
When rattling off crypto currencies it would be cool to mention Steem currently paying several hundred for this post.
Ben you are the best!! Keep up the great work! Another upvote!
Interesting... it will, financially, believe me...
and just some, will manage to stay in anonymity...
I always laugh when people say that the internet was a bubble... looking at the largest companies in the world I'd say it was a dip which corrected to the upside.
Ray Dalio loves radical transparency... wonder when he'll start viewing bitcoin that way.
powerful
Genuinely Good work..! ! Thank You for sharing this on steemit!
68 views 348 votes... interesting
Can be partially explained the following behavior. User clicks the upvote button without opening the article or watching the video. This is something I do myself, mostly when I have seen the content on a different platform (e.g. already watched the video on YT) but also want to upvote the here.
The other part is delegated upvoting, or something like that. Admittedly not something I know anything much about. Would be interesting to learn more about this process