Crypto serves no purpose and doesn’t result in anything tangible or useful. It uses tremendous amounts of electricity to run and cool the computers it’s hosted on. The world is finally figuring this out and the house of cards is collapsing.
Real work? Sure! Just as much as mining real money (silver or gold) is real work. Takes a lot of energy to mine crypto. Is the result tangible? No of course it is fiat money like all the popular currencies in circulation.
As I understand it, the primary justification for crypto currency is that it eliminates government involvement in it’s creation and management. It is also supposed to do away with a trusted third party, like banks and financial institutions when it changes hands in a transaction.
Since almost all conventional transactions today are accounted for, in one way or another, using the Internet, Crypto’s role is not much different in that way. The real difference is the lack of a third party in the use of Crypto as a medium of exchange.
The value of it as an exchange medium is agreed upon by those participating in that Crypto Currency without any additional guarantor. That is unlike the US dollar which is backed by the US Government using the good faith in it’s ability to provide goods and services of real value.
As I understand it, not all Crypto Currency is as energy-consuming as Bitcoin is. The “mining” part of the crypto phenomena is actually a competition to participate in the Blockchain process and earn a share of the total supply of the currency. And the blockchain process is what makes the elimination of banks and governments possible. The inevitable result, given that the Bitcoin has a finite number of coins they will mine, is currency deflation. Or… total collapse of the currency.
In some cryptocurrency schemes blockchains are created by virtue of the participant’s stake in the currency and is not assigned by a competitive activity but by consensus of all the stakeholders as a condition of use.
I’m very much a newbie when it comes to knowing anything about crypto currency. But it has become such a “thing” that is hard for me to ignore any longer. I think it’s a good idea to know a little about the workings of it before praising or condemning it.
Like it or not, crypto is here. Whether it remains and flourishes or turns out to be a monetary kerfuffle caused by someone’s goofy idea gone viral, remains to be seen.
I find it similar to the 2008 financial crisis, everybody was talking about it but not many people really understood what caused it.
It’s not nearly as profitable or easy as it used to be. If you’re doing it solo, you’ll have to spend a significant amount of money on a setup if you want good returns, and powering the setup is quite costly. You can easily lose money due to energy costs if you don’t have the right hardware, or if prices dip.
So, real work? I guess it depends on how much trust you have in the crypto market.
Sure! The competition in the cryptocurrency marketplace requires significant resources and effort, making it real work. The results can be tangible and useful, as cryptocurrencies and blockchain technology offer innovative solutions for various industries. The performance of cryptocurrencies is judged in the court of world commerce and finance based on factors like market adoption, technological advancements, regulatory compliance, and real-world applications( persinally reead about that here). Also, participating in the crypto market with platforms backed by a special license enhances credibility and ensures adherence to regulatory standards, further boosting their performance and trustworthiness.