Hard Questions Learned From Experimenting With Altcoins

I saw this over on the Bitcoin Official Facebook page and thought I’d share this….it’s basically a PSA so doing my civic duty….

HARD LESSONS LEARNED FROM EXPERIMENTING WITH ALTCOINS

[0:06] Alex McShane: …It’s too much risk. These trusted third parties that are leading these projects are security holes as the saying goes. I would rather just have faith in consensus than this aero-type protocol that is Bitcoin. While it might not be perfect, it is the best money I’ve come upon in my life.

[0:29] Crown #Bitcoin: I think the big thing about shitcoins, generally, is that they’re all trying to create various forms of perpetual motion machines if we think of money as energy. And you can in this sense think of money as energy. It’s your ability. It’s the mechanism that drives the machine. And when you use money as an incentive, which is what some of these taps and DeFi protocols tried to do and what Luna tried to do, they tried to use money or forms of money that they created as an incentive to drive these systems. And ultimately, you can’t create energy out of anything, you can’t create something out of anything, and the same goes for money. You can’t just say, “This is going to work because we’re going to give you 20% per year to hold it,” and where’s 20% going to come from? Well, it’ll be really popular, so surely we’ll be able to afford it.All these things boil down to perpetual motion and all this adding gears to a machine that ultimately will just be mathematically impossible to work.

https://bitcoinmagazine.com/markets/hard-lessons-learned-from-experimenting-with-altcoins

 

Master Asked on June 1, 2022 in Bitcoin.
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