in light of recent events, was thinking about how crypto provided this fascinating window into a libertarian society without banking regulation/oversight/enforcement and what a horrifying dystopia it would be
it turns out "if your bank's CEO drains everyone's account and tries to disappear, a squad of people with guns will show up at their last known location" is a load-bearing pillar of society
Bitcoin haters are missing the point. People don't use it (solely) because they're stupid or love risky gambles. The banking system is so broken — so tedious and costly even for a simple bank wire, so heavily regulated against anything that might be sexy to someone somewhere — that you're often better off with silly volatile easily-stolen Wild West crimes money.
That said, I like regulation: it's nice that I can have some safe-but-tedious money and some PvP-enabled money, instead of the latter being the only option.
gotta be honest my experience transferring money with my bank (actually a credit union fwiw) is that it is both free and easy
Bitcoin sucks but they have part of a point; the only actual useful economic niche that anybody ever found for crypto - the whole thing about it being an alternative mainstream currency was never going to pan out, because a given coin isn't backed by anything except usage and speculation, and so always can be outcompeted by new coins - was that, due to being unregulated and somewhat anonymous, you could use it to trade illegal black market goods.
Lol.
The Bitcoin is good because banking is broken argument applies, just not to USAmericans or anyone else living in a WEIRD nation.
(other honorary mentions include Peru, Brazil, Columbia, Argentina)
It's kind of tone deaf to shit on this technology just because you happen to be in a country where your banking system works and putting your money in the bank doesn't run a risk of losing it forever. It's popular in places where stashing cash under the mattress is still safer than bank deposits or government bonds.
Like yeah, pretty much all Americans using crypto is either a scammer or about to be scammed, but this isn't universally true worldwide. You may want to use Bitcoin for remittance. You may want to use it to invest because the country you're in does not have deposit guarantees! You may want to convert your retirement nest egg to crypto so the Prime Minister can't steal it to make crappy movies.
(and alas, USAmericans still hold the most wealth in crypto, but that's kind of from being a rich developed nation. 5% of your country using the thing can control more wealth than 30% of Nigerians using the thing)
It's kind of tone deaf to shit on this technology just because you happen to be in a country where your banking system works and putting your money in the bank doesn't run a risk of losing it forever. It's popular in places where stashing cash under the mattress is still safer than bank deposits or government bonds.
i think the other missing piece here is that even accounting for the current bout of inflation, the US dollar is actually quite stable, and so crypto looks (and is) wildly unstable by comparison
but if you live in a place that is occasionally subject to hyperinflation, bitcoin looks alright by comparison
anyway i think it's still fair to say bitcoin does a very bad job of being a currency when compared to the dollar or the euro, but if you live in a place that doesn't have this:
if your bank's CEO drains everyone's account and tries to disappear, a squad of people with guns will show up at their last known location
it has a decent chance of being better than your alternatives
I think a key point here is that the argument above is for an accessible alternative financial asset that can be bought/sold digitally, and there is no reason why that has to be cryptocurrency. Cryptocurrency isn't anything particularly special; people call it a "technology", but that makes it sound like there's innovation beyond blockchain, which there really isn't.
What you actually have is blockchain, a sort of niche concept for an immutable data structure, and then a lot of overhyped finance apps built using it. Through their insistence on being decentralized/proof of work/operating on a "gold brick" hype model, those apps can only ever be unwieldy, leak value like water through a sieve after an initial hype phase, and be horrifically wasteful energy sinks.
Crypto isn't used as an alternative financial option because it is good, it's used because it's there and it's accessible, having been buoyed up by the efforts of its primary holders, first world investment types and scammers. The fact that people have found some utility in siphoning crumbs from that table doesn't retroactively make it a worthwhile endeavour, its just an indictment of how much a shitty idea has been able to grow. The solution here is to develop a better banking alternative for the regions you mention, not to keep using crypto as-is carte blanche, because the way it's built means it's pretty much guaranteed to fail sooner or later, taking most if not all of its value with it. That's not to mention what happens when crypto becomes established enough that governments do try to clamp down. If there's any use for blockchain finance products then I don't feel like a decentralized, coin-mining model is the answer.
I feel that this is all true even taking into account countries where crypto is a viable (or potentially even a politically endorsed!) banking alternative at the moment, although if you're saying that the mass adoption of crypto in the countries you mention is all sunshine and daisies then... well, I doubt it's quite so simple, but I'm not really the expert on that. @ericvilas, your thoughts on how cryptocurrency in Argentina has been going?
Oh hey! Your local "person who lives in a country with a 100% inflation" here!
The peso is not trusted at all, so everyone wants to have reserves in US dollars. To stabilize it somewhat, the government put in restrictions on currency exchange markets, and you can only legally buy 200 dollars a month. And if you have dollars and want to sell them, then going through legal means is gonna make you lose money - you can get twice as much bang for your buck by going through the incredibly easily accessible black market.
Or, you can skip all of that and just use stablecoins.
The stablecoin of choice for Argentinians is the DAI, one of the many ETH-based stablecoins. So yeah, in short, the only thing crypto is good for is to obtain illegal goods or bypass regulations. It just so happens that the illegal goods in this case are actually US dollars.
So, basically, crypto is very good at bypassing the regulated financial markets.
It's bad when the financial regulations are protecting you from all manner of scams and shenanigans
It's great when the financial regulations (e.g bad government currency controls, US sanctions) are absolutely fucking you over









