The problem with cryptocurrencies
This may seem like an odd post on a site that is built around a cryptocurrency. However, I see a real problem with cryptocurrencies in general that may drag all of them down if nothing can be changed about it.
Most cryptocurrencies, if not all, have a mechanism that limits its creation. This puts these cryptocurrencies in stark contrast with fiat currencies, when can be inflated until they are worthless. This is in general seen as a good feature of the cryptocurrencies and I would agree. However, while each individual cryptocurrency like bitcoin has limits on its own creation, if we look at cryptocurrencies as a whole, there is a massive number of them, and more seem to be created as time goes along. It appears far too easy for cryptocurrencies to be created out of thin air, and to seemingly get instant credibility just from its creation. I think this has the danger of bringing to cryptocurrencies the same charge that is accused of fiat currencies, that there is just too much of it and no way to limit it.
I think that if cryptocurrency has a future, it will be with a select few of the cryptocurrencies that gain credibility and acceptance with the general public without being lumped into the mass of other cryptocurrencies that seem to just be randomly coming out of the air. Time will tell if steem becomes one of those.
What do you think? This has been my concern for a while now as I see more and more cryptos being created.
Well bartering and/or being self sufficient is better than relying on an external money.
Crypto currencies are digital non physical money that requires computers and networks
and electricity to exist, without its requirements, it does not exist and is not operable. It has many benefits over physical money. bitcoin will evolve and is the first and has the most worth at the moment.
its not easy to use these things so when they become easier their worth will rise.
I do think it will become easier and easier to use.
i agree it will always have a nomadic techno niche
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Interesting point but I think you're overlooking the fact that some of the crytpos have different functions/purposes. For instance, I got excited about ethereum for a different reason than I did about bitcoin....and I got excited about Steem for a different reason than I did ethereum.
Granted, I am certainly no expert when it comes to this stuff, but I suspect if you looked more closely at these crytpos, you'd see some subtle differences and variations.
I'm not an expert either. I think we are all trying to learn our way.
I'm no expert, but for awhile Bitcoin wasn't as high in price as it is now and it was actually too expensive for most people to mine because the electric cost was more expensive than running the miner would be rewarding. These days Bitcoin is surging higher and the value of the coin is enough that mining has become profitable again for a lot more people.
From my understanding mining Crypto is designed to emulate mining gold IRL, this is to say that it has to be worth x( amount to be 'worth mining' or enough to justify the effort put it and bring a profit; that or the technology has to improve enough to accomplish the same thing. Again though, I'm no expert.
Good points! I do wonder what the future holds for crypto when technology inevitably improves.