Cryptocurrencies are a scam

It has been very concerning to see ads for bitcoins on public TV (specially IPL). I think there needs to be wider awareness of why crypto is nothing but a junk asset class.

To quote Drew Devalult

Cryptocurrency is one of the worst inventions of the 21st century. I am ashamed to share an industry with this exploitative grift. It has failed to be a useful currency, invented a new class of internet abuse, further enriched the rich, wasted staggering amounts of electricity, hastened climate change, ruined hundreds of otherwise promising projects, provided a climate for hundreds of scams to flourish, created shortages and price hikes for consumer hardware, and injected perverse incentives into technology everywhere. Fuck cryptocurrency.

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Hey @Rushabh_Mehta,

I love to read your comments on Telegram channel. Your discussions on blockchains helped me understand distributed ledgers better. Yet, I am not sure if I understand it completely and correctly.

My understanding is that: blockchain is a distributed ledger like our accounting books. We all maintain a copy of accounts at our end, but a summary of them are also maintained with the tax departments through TDS and returns. Similarly a copy of some transactions are also maintained with banks, suppliers and customers. This all together can be seen as a distributed ledger.

Is my understanding correct? And is that exactly how the blockchain works too? How does this system solves mismatches - like mismatches in our books and taxation records? And who can see the complete picture?

Would also love to understand how the ledgers are distributed in a hawala system?

Thanks for sharing your thoughts openly,

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Thanks @Pratyush_Mittal!

Books in tax systems (like GST) are updated by both parties in a transaction - since its a Value Added Tax. For example if you paid GST to me on a transaction and you want to claim it as credit, both of us have to update the tax system. So there is very little chance of an error.

My broader point is that this system works by and large. We make huge number of digital transactions via NEFT/UPI etc that are all cross checked by RBI. Our money suddenly does not disappear.

These systems are not really broken.

My broader point is that blockchain is promoted as some kind of a techno-utopia where governments and intermediaries suddenly disappear and we are in a just world. That is patently false.

Moreover people are buying into the cryptocurrency hysteria to make a quick buck. (Check the WazirX trends on Twitter). Unlike other investments, crypto is backed by nothing - the only way you make money from your crypto investments is by dumping them on someone else before the prices crash. This makes it a Ponzi Scheme.

My broader point is that no-one is calling this out loud and clear. Governments think Blockchain are some kind of panacea for society’s problems (?). There is no fundamental improvement on any outcomes due to blockchains (at least no one has been able to demonstrate to me so far!)

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