Let me explain this "no inherent value" idea as it applies to crypto. First of all "Bitcoin" and "crypto" are different things. You can talk all day about most cryptos (not all) being conjured out of thin air, and they are. But Bitcoin actually requires work to be put in by someone for it to keep running, and has a limited supply of 21 million coins. No one has complete authority over the network, therefore no one can change the supply cap or inflation parameters, or produce new coins arbitrarily. We know exactly how many bitcoins exist now, and at any particular time, past, present, or future. The rate of coin issuance is preprogrammed and deflationary over the long run. It is impossible to forge, edit, reverse, or delete transactions. It is impossible for anyone to freeze or seize another person's wallet (not considering social engineering).
Why would a central bank invent something like Bitcoin? They wouldn't. If the whole world ran on Bitcoin, there could be no Fed. It destroys all of their scams. But something happened in 2017 and the years leading up to it. The Bitcoin community was infiltrated and the industry captured by scam artists led by people promoting other coins which lacked the robust fundamentals of Bitcoin. They told people it was all about getting rich and driving Lambos. This is what led to the rise of "shitcoins" and the centralized exchanges that facilitate them.
On the point about energy consumption, there has been some discussion about using the computational power of the Bitcoin miners to act as a sort of public cloud supercomputer. Bitcoin can already do this, but the feature was disabled years ago (along with many other things), presumably due to the fact that the Bitcoin core developers were pressured by external forces who favor the status quo and do not want Bitcoin to succeed.
The fact that bitcoin is limited to 21M and took effort to build out is irrelevant to the fact that it has no inherent value. Itβs not a slight against bitcoin, itβs the reality. The same applies to the USD and the shitcoins.
Secondly, I donβt think the Fed created it, and while bitcoin could help destroy the Fed, there are other resources better suited to doing that in my opinion.
Let me explain this "no inherent value" idea as it applies to crypto. First of all "Bitcoin" and "crypto" are different things. You can talk all day about most cryptos (not all) being conjured out of thin air, and they are. But Bitcoin actually requires work to be put in by someone for it to keep running, and has a limited supply of 21 million coins. No one has complete authority over the network, therefore no one can change the supply cap or inflation parameters, or produce new coins arbitrarily. We know exactly how many bitcoins exist now, and at any particular time, past, present, or future. The rate of coin issuance is preprogrammed and deflationary over the long run. It is impossible to forge, edit, reverse, or delete transactions. It is impossible for anyone to freeze or seize another person's wallet (not considering social engineering).
Why would a central bank invent something like Bitcoin? They wouldn't. If the whole world ran on Bitcoin, there could be no Fed. It destroys all of their scams. But something happened in 2017 and the years leading up to it. The Bitcoin community was infiltrated and the industry captured by scam artists led by people promoting other coins which lacked the robust fundamentals of Bitcoin. They told people it was all about getting rich and driving Lambos. This is what led to the rise of "shitcoins" and the centralized exchanges that facilitate them.
On the point about energy consumption, there has been some discussion about using the computational power of the Bitcoin miners to act as a sort of public cloud supercomputer. Bitcoin can already do this, but the feature was disabled years ago (along with many other things), presumably due to the fact that the Bitcoin core developers were pressured by external forces who favor the status quo and do not want Bitcoin to succeed.
The fact that bitcoin is limited to 21M and took effort to build out is irrelevant to the fact that it has no inherent value. Itβs not a slight against bitcoin, itβs the reality. The same applies to the USD and the shitcoins.
Secondly, I donβt think the Fed created it, and while bitcoin could help destroy the Fed, there are other resources better suited to doing that in my opinion.