Month: December 2021

Cryptocurrencies in a Nutshell

  • Bitcoin and ETH are not being used in the real world in a way integral to economic activity, even 10 years on.
  • An issued token cannot be decentralised without the source code being frozen and subject to no further modification ever.
  • Centralised authorities control the source code for each project, and most tokens are on centralised exchanges, yet proponents promote decentralisation – lies and hypocrisy.
  • All cryptocurrencies mirror Bitcoin and meme stocks in behaviour with regard to market dynamics, which is evidence that it’s not the technology itself but only herd behaviour and hype that is driving the price. 
  • Unlike stock in a company, there are no fundamentals – the tokens are backed by nothing other than ephemeral “trust” that can disappear within seconds into nothing.
  • The “decentralised” nature of cryptocurrencies means no ultimate accountability. This would work if the tokens had inherent, intrinsic, non-ephemeral worth, like metals or commodities, but they don’t.
  • Currencies like USD and GBP are guaranteed by their issuing, elected governments. Cryptocurrencies like BTC and ETH are not guaranteed by any issuers, despite being issued currencies.
  • Similar applies to NFTs.