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Ved Shankar's avatar

This was helpful. I've been curious about the space since 2021. I watched the MIT course and realised how complex crypto and blockchain is because of the intersection of economics, comp sci and government.

Personally, while I love reading, I think some technical projects would help really understand what's going on as a first step

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Dave Foulkes's avatar

I just don’t know Iwana. The whole area is awash with political agendas. Hard to know the signal from the propaganda noise. I’m with you on the blockchain ideas. Even if it only ends up being an inspiration for what comes next - it’s a powerful one. I just have more scepticism about the cryptoverse. Like you I think we ought to start exploring beyond nation states and many of our current systems as a ‘just in case’. But there’s a dark side to the crypto story too (tbf you did hint at) which is not flattering and it shows up in the ‘good luck being poor’ comments and the arrogance of people like Srinivasan who lose million dollar bets that the dollar will hyper inflate immediately. Crypto is the house cat of nation states currently and its value collapses if they stop creating deficits (especially US ones). These people don’t understand how fiat operates in a nation state at a fiscal level - let alone how a state even functions - and they would be the ones with enormous power and influence if a world of crypto dominance came in the current form.

We may need a form of new currency (or currencies) for sure but I notice in the urgency to unfuck your finance by 2030 from the likes of Roaul Pal and others, a pretty standard marketing technique - ‘here’s this massive problem and here’s the solution in the form of my investment / consultancy. I think they believe it but it comes from a false mythology that could end badly.

Wrapped up in its mythology is a very old form of goldbug obsession that currency should hold its value against gold forever. That’s not its purpose as having too many people in any economy holding onto the national currency and not spending it, is exactly what creates recessions and low demand. Investing in (hopefully) productive assets or even just artisanal wine or art what people have historically done to protect long term wealth - also the category of crypto and where it should stay imo.

Until and unless there is a genuine economic revolution to one that is decentralised and that actually can create a functioning internal market in its own currency - it’s nothing more than a ‘number go up’ ledger.

Sorry - don’t mean to sound negative. I think the subject is just a lot less certain

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