Can someone 'splain me like I'm 5. Blockchain?

a reply to: Flyingclaydisk

Okay, so I'm kind of starting to gather that in order to accept cryptocurrency and its underlying blockchain accounting mechanisms I first have to accept a value exists where no tangible thing of value exists.

What makes Visa or Mastercard worth money as companies?

a reply to: TzarChasm

Bingo! This is my challenge also.

Fundamentally, it doesn't make sense. Every place you try to research it quickly delves into the whole blockchain mathematics and it's like..WAIT!...you first need to explain why I should trust this concept...before you get into explaining a bunch of complex math on the accounting side. The accounting is easy...the 'trust' and 'value', on the other hand, is far more difficult to grasp.

But, I guess it's like that age old movie..."Pay no attention to that man behind the curtain! (roar!)(flash! flash!)"

I don't know anyone big into crypto, but I do know a few into it small time. None of them can explain these answers, and all of them go off the rails talking about government control and other NWO stuff, but never explain how it works, like really explain it. Truth is...they don't understand it either, other than the cool factor.

One thing I do know, is not a quarter goes by where we don't hear about some dude going to jail for embezzling millions after creating their own crypto and ripping thousands of people off...kinda like Bernie Madoff style. I really wonder how anyone sorts out a credible crypto vs. a scam crypto...and candidly, I'm not sure anyone can.

"Trust" is an important part of economics. It's HUGE actually, and people in the crypto world need to explain why people should have this 'trust' far better than they have to date IF they ever expect crypto to take off in a meaningful way.

a reply to: CriticalStinker

What makes Visa or Mastercard worth money as companies?

Great question! Absolutely NOTHING! All they are is "clearing houses". Has nothing to do with value!

I look at all companies like VISA and Mastercard as 'negative value'. They represent nothing more than debt (to most people). Otherwise, they are just a common point of sale (POS) clearing house for transferring money from one user to another merchant via a common credential.

Completely different than crypto!

a reply to: Flyingclaydisk

Completely different than crypto!

I wouldn’t say that.

The utility is in the network that’s been built to be able to process the transactions, and do so quickly, and in some cases with much lower fees than cards.

The truth is there are a lot of scams, there are high fee cryptocurrencies, there are chains that shouldn’t be trusted, and there is centralization popping up in crypto.

It’s the Wild West. And you’re only as safe as you are competent in the space. It’s not for everyone, and you shouldn’t blindly trust it.

There is small amounts of utility if you know how to find it, and at times there is more transparency than any other traditional form of finance.

You can’t go to the bank and ask to see their books, and every transaction they’ve ever made. You can however see how a coin is coded, and see every transaction to validate coins didn’t come out of thin air.

originally posted by: TzarChasm
a reply to: Flyingclaydisk

It does sound fake, like a computer game where the in-game fictional currency somehow translates to real world currency, but in order to obtain that currency you have to spend real world currency on tangible materials and tools which translates to 50 literal cents spent for every fictional dollar earned. Doesn't add up to me.

Many people have said similar things over the last ten years. I would say that they all have a lack of knowledge and understanding in common.

By real world currency, do you mean fiat currency?

originally posted by: Ravenwatcher

originally posted by: TzarChasm
a reply to: Flyingclaydisk

It does sound fake, like a computer game where the in-game fictional currency somehow translates to real world currency, but in order to obtain that currency you have to spend real world currency on tangible materials and tools which translates to 50 literal cents spent for every fictional dollar earned. Doesn't add up to me.

That sounds like when I was playing World of Warcraft, I would buy gold illegally against game rules with real money only to be able to use the gold in game. So that digital gold actually had a monetary worth even though I was breaking the rules and paying the farmers who farmed the gold .

That digital gold has monetary worth in a very specific market, it's not like you can exchange it at your local bank and get your money back.

originally posted by: CriticalStinker
a reply to: TzarChasm

It has utility though. You can send money to anyone in the world without any restriction in seconds.

You can’t wire someone money without restriction. You can’t send gold quickly.

People were skeptical of credit cards and online shopping when it first came out.

It's not the same thing. Credit cards and online shopping are simulations of a physical relationship involving physical money. 1's and 0's are abstract expressions substituting for the cash but at the end of the day, there's a vault stacked full of liquid asset. There's no liquidity in crypto unless you can find a buyer willing to dump thousands on the chance they will turn around and bump into somebody prepared to trade millions for what they bought from you. It's like having a priceless collection of something dumb and weird (like Funko pops) that nobody will buy from you because it cost millions and the applications for it (besides bragging rights) are scarce to non existent. There will never be any retailer or vendor or proprietor who demands exclusively crypto and will take no other tender as payment.

originally posted by: CriticalStinker
a reply to: Flyingclaydisk

Completely different than crypto!

I wouldn’t say that.

The utility is in the network that’s been built to be able to process the transactions, and do so quickly, and in some cases with much lower fees than cards.

What 'value' does that network, or anything else, provide to me as the guy with the money to invest? I already have the 'expectation' that anything I invest in is going to be secure, so there's no value add to telling me this is "more" secure. I already assume it's secure, so you'll have to prove higher than this, and that's not possible.

The truth is there are a lot of scams, there are high fee cryptocurrencies, there are chains that shouldn’t be trusted, and there is centralization popping up in crypto.

It’s the Wild West. And you’re only as safe as you are competent in the space. It’s not for everyone, and you shouldn’t blindly trust it.

Precisely why it will be a long while before I invest even a dollar...which should be of concern to the crypto market. Blind trust is rare...very rare.

There is small amounts of utility if you know how to find it, and at times there is more transparency than any other traditional form of finance.[/quote]

Okay, would you mind citing some specific examples of where to find it? I would think, if this was credible, then everyone in the market space would be screaming from every rooftop for people to invest, and more importantly WHY they should invest.

You can’t go to the bank and ask to see their books, and every transaction they’ve ever made. You can however see how a coin is coded, and see every transaction to validate coins didn’t come out of thin air.

Oh, on the contrary, I absolutely CAN go into a bank and request their records. Their records are a matter of public information and disclosure. Now, I can't just walk in and get a report, but I absolutely can get their records if I follow the correct request procedures. This is all part of how the Federal Deposit Insurance Corporation (or FDIC) works. Banks aren't advertising this full disclosure, but if you know how to get it, they are compelled by law to disclose it.