From 756cca66f7e13dd7dac0d8e0a5954c6b4284055c Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Yaroslav=20de=20la=20Pe=C3=B1a=20Smirnov?= Date: Sat, 16 Apr 2022 00:05:03 +0300 Subject: New blog post: It's time to use crypto --- .../weblog/2022-04-15_time-to-use-crypto/index.md | 178 +++++++++++++++++++++ 1 file changed, 178 insertions(+) create mode 100644 content/weblog/2022-04-15_time-to-use-crypto/index.md diff --git a/content/weblog/2022-04-15_time-to-use-crypto/index.md b/content/weblog/2022-04-15_time-to-use-crypto/index.md new file mode 100644 index 0000000..4c7ce06 --- /dev/null +++ b/content/weblog/2022-04-15_time-to-use-crypto/index.md @@ -0,0 +1,178 @@ ++++ +title = "It's time to use crypto" +date = 2022-04-15T20:54:32Z ++++ + +Cryptocurrencies have been around for well over a decade. Everybody who's ever +used the internet has at least some basic understanding of what a cryptocurrency +is, yet most people seem to miss the point of cryptocurrencies. Nevertheless, +recent events have shown us how important this technology actually is and why it +is better than the alternative. + + + +Long gone are the days when simply exchanging one product or service for another +suffices. We have a better way of exchanging value through our monetary system. +The classical monetary system is also not enough anymore. Gone are the days of +the gold standard, and here be the days of instantaneous transactions across the +whole world using electronic means to transfer money. + +However, with all those benefits have come a lot of negatives that have reduced +our freedoms and intruded in our privacy. If you want to trade electronically +across countries or even inside the same city, you have to go through a dozen of +intermediaries each of whom gets a piece of the transaction, each of whom has +their own rules and each of whom can track what each person buys and sells at +any moment. + +Basically, we've allowed ourselves to take part in an Orwellian financial system +that has the say on how, when and with whom we are allowed to trade. The worst +part is that we all are taking part in this voluntarily. + +Many people might dismiss the arguments against such centralized control of the +finances as being paranoid, but there are already great examples of why such +centralized control is bad for people's ability to trade freely. + +Starting from people with opinions that are not very popular among those in +charge to now, canceling an entire country because the government of said +country did something that the powers that be didn't like. It's nothing new that +we are limited by the rules of of those who are in charge of the system. After +all it's their system and they set the rules. That said it's not like there are +no alternatives. + +That's where cryptocurrencies come in. Whereas traditionally financial systems +have relied on a central authority to set and apply the rules, to mint or print +money basically reducing the wealth of the people that hold said currency at +their mercy, cryptocurrencies allow no one person to control the system. + +The premise of cryptocurrency is that no one person controls the system. There +are a set of rules by which all of the parties of the game agree to play, and +each participant controls each of the other ones. If there is some discrepancy +with the rules or some manipulation is seen by the rest of the participants they +won't allow such behavior to go on and will simply refuse the malicious actions +to take place. + +Basically a cryptocurrency is a network in which anybody can take part, giving +some computer resources in order for the network to work by generating blocks +that contain the transactions and possibly some new unit of cryptocurrency that +is mined. No one party in the network can change the rules. The system is made +in such a way that mathematically no one person can go against the rules (e.g. +double-spending currency) without said person or party owning more than 51% of +the network's capacity, which, at least for Bitcoin and most major currencies, +is basically impossible now.[^1] + +Not all cryptocurrencies are equal, though. Bitcoin is the most popular and the +most valuable crypto out there on the market on the merits of being the first +such system. Back when it was announced and launched by the mysterious Satoshi +Nakamoto it was a revolutionary system. It still is, but it's not without it's +flaws. + +The biggest flaw that I see with Bitcoin is its lack of privacy. I'm actually +surprised that more governments are not on board with Bitcoin[^2], taking into +account how easy it is to track transactions. And it's not like it is a bug of +the system or something, it's more of a feature actually. In order for the +original concept of the blockchain to work, a public ledger was needed. + +Bitcoin also has many other problems such as very poor perfomance, and its +proof-of-work algorithm being very prone to centralization, or at least making +it harder for smaller players to take part in the system due to how easy it is +to make ASICs for it. + +With that said, the biggest advantage of cryptocurrencies still holds for +Bitcoin. It is a **decentralized** currency. No one person, corporation or +government controls it. You can create as many addresses (think of a bank +account) as you want and all it takes is a couple of clicks. No need to enter +into any contracts or give your ID and private information to some bank. + +Fortunately the biggest problem with Bitcoin, privacy, is fixed in other +cryptocurrencies, namely Monero[^3]. Monero, in my humble opinion, is the one +cryptocurrency which I think offers the most advantages with the less +disadvantages. It's not only completely decentralized as Bitcoin, but it also +offers full privacy by default. Nobody, except for the sending and the receiving +parties, knows how much is being paid, and who is paying whom. + +Apart from that I have also found Monero much simpler to use. It is easier to +take part in mining, due to their proof-of-work algorithm, transactions are +faster and commissions are lower. I do think that it is the cryptocurrency to +rule them all. + +I had already started using crypto, specifically Monero, since some time ago, +and was interested in the technology since I found about it in the early 2010's. +However, I was never really an active user. For me, that has changed now. + +On the 24th of February the Russian government decided to actually do something +about the conflict that was already happening since 8 years ago. Of course, the +United States didn't like it and now they are basically taking cancel culture to +a whole new level by basically trying to cancel the entirety of Russia. + +The irony of the situation is intense, not only are those sanctions affecting +mostly people who have nothing to do with the conflict, they are also affecting +the people who they are supposedly defending with these sanctions. Believe it or +not, many Russian people have relatives in Ukraine. + +And of course the hypocrisy is through the roofs. I'm not taking about the +American government themselves, of course they would act like they do, might +makes right in our world after all. I'm talking about all of the other countries +and the corporations that are "supporting Ukraine" by "stopping all work in +Russia". Nowhere to be seen was their support of the people that the US +~glowniggers~ government invaded or carpet bombed, but anyways, that's a little +off topic. + +The point being that the ability of the Russian and Ukrainian people to trade +with other people is being crippled right now because of the decisions of some +politicians and businessmen. The Ukraine is of course the most affected right +now, since it has itself become the victim of a proxy war between the US/NATO +and Russia. And those of us who live in Russia now cannot properly trade with +people of other countries, or even send money to relatives in other countries. + +These problems can be overcome fully only by using a fully decentralized +electronic money system. + +I think, and I actually hope, that cryptocurrencies will never replace cold hard +cash. I would prefer, of course, if we traded in non-fiat currencies, but that +is a story for another day. I do think that cryptocurrencies should become the +standard for electronic transactions. + +I care not for who is in charge, be it a corporation or a government, neither of +them actually have[^4] your or my interests in mind. The only solution to the +problem is something that is not controlled by anybody. + +Personally, since the start of this conflict I have started to use more +cryptocurrency, especially as a store of value. Right now inflation, both in +Russia, where I live, and outside of Russia, is really high which means that +fiat currencies are just a loss of money if you hold[^5] them. Right now even a +savings account isn't actually that worth it. On the other hand, Bitcoin and +Monero are overall deflationary so, even though not as good as precious metals +or real estate, they are a pretty good way to store value and keep some savings. + +In short, I want to summarize the reasons why I believe cryptocurrencies are the +way to trade electronically: + +* No central authority. Nobody can steal your money (close your account, reposes + your funds, etc). because someone (bank, government, etc.) said so. Only if + someone gets hold of your keys can they steal your money. +* Nobody can "print" or create more cryptocurrencies at will, like the Federal + Reserve can with the dollar, or the Central Banks with other currencies, which + leads to the next point: +* Crypto is not inflationary; right now most are quite volatile, but overall + they grow in value against fiat currencies. +* And, in the case of Monero: your transactions are completely private; there's + no government or corporation spying at what you buy or who you send money to. + +In this troubling times stay safe and remember, do not trust anybody, with whom +you are not acquainted in real life. + +[^1]: This is just a very very simple and short overview on how (most) + cryptocurrencies work. If you are interested in learning more, I suggest you + start by reading the bitcoin whitepaper. + + +[^2]: You know, with how all current governments love to spy on their people and + ~steal from them~ tax them as much as possible. + +[^3]: Check out Monero's website for more information: + + +[^4]: The government is *supposed* to have the interests of its people in mind; + the thing is that de facto it has never happened and will never happen. + +[^5]: Well, they always are, it's just higher than usual now. -- cgit v1.2.3