Quote:
Originally Posted by jmg
If you are equating crypto to cryptocurrency then that is not how I understand it. I believe you have it backwards.
The core function/part of blockchain is the distributed/decentralized ledger. Cryptocurrency is merely one thing that blockchain can keep record of. You can track contracts, parts, policies, inventory, goods... and currency among many other things. That's why it's so useful. You don't need cryptocurrency to run these blockchains, you need blockchains to track cryptocurrency.
I understand and agree with most of this. I think this is what I am failing to communicate properly. I'm not skeptical of the idea of currency managed by blockchain, I'm skeptical of currency who's value is largely set by speculation like bitcoin. There is a reason government regulated fiat is more stable and more desirable. Inflation is predictable and even controlled. The value fluctuations due to the economy. It's much more difficult to pump and dump or manipulate fiat due to oversight from the government. But let me be clear, that doesn't mean cryptocurrency will forever be useless outside of speculation.
I never said it wasn't going to amount to anything in the future. You are grouping me with the original poster you were replying to. I wasn't replying to your post because I agree with who you were replying to. I was adding to the conversation. Yes, I agree, in the future there might be a solution that involves cryptocurrency. But right now, I'm skeptical of its value because it is so volatile. I'm sure we will find a way to use it as currency eventually... and not to open a can of worms, but I truly believe that the only way cryptocurrency can be viable is by eliminating fiat entirely. Like I stated earlier, conversion from crypto to fiat post transaction is necessary because of local reliance on local currency and the relative stability they have. Who is going to hold on to $55k in bitcoin when it's going to dip to $35k in a few weeks?! Business risk their profit margins if they only deal in cryptocurrency. Herein lies a paradox: I don't think fiat money is going anywhere soon, and I don't think cryptocurrency will evolve unless they do. Eventually, even speculation will end end of fiat becomes hazier. It will take a world level event to get rid of fiat. Almost something like the Euro. One only has to study the Euro to see how complicated that will be.
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When I say crypto I just mean cryptocurrencies for short. I know cryptography is the function in which these blockchains/ledgers are made/established/run on.
POW blockchains need the coin to power the network/incentivize the miners to mine and perform the transactions on the network. Ethereum needs ETH to provide "gas" for the network, same with BTC. You're right though, coins aren't necessarily needed for blockchains/ledgers to work, but some ledgers are made to take use of coins/token to get the intended specific use out of them.
I think we agree on a lot, we just misunderstood each other at first, and I did think you were going along with the original quoted person, sorry. I agree with a lot of what you are saying. I'm not sure how it will all actually work out in the end in the long run, but all I know is I'm not missing out on the opportunity to make life changing money.