Crypto currencies are a scam

By Aleksander Demko, May, 2021.

Technologies are usually tools

As a programmer, I usually have a cold, analytical approach to technology. I judge something objectively, balancing its pros and cons. Perhaps its slow, but easy to use. Perhaps its fast but uses a lot of memory. Maybe it doesn't have any real pros but is a useful teaching tool. Technologies are generally all neutral tools that can be applied to real world problems.

Crypo - aka crypto currencies - however seem to me to be a huge exception to this rule. It's just bad on so many levels and I don't see why it continues to exist. It has so many cons and no real pros and I'm motivated to just write them all down.

Note that when I say "crypto currencies" I'm referring to all crypto currencies and currency-like things that use a fully distributed public ledger with no central controller. Some technologies that are associated with crypto but aren't really crypto, such as public (but centrally managed) ledgers or immutable databases are excluded from my critique.

So here goes...

The many downsides of crypto

There are so many cons of crypto that I'm going to group them into themes:

Wasteful of resources

Crypto is very inefficient for what it does. It consumes vast amounts of:

Expensive and not performant

Even with its vast resource consumption, crypto currency networks are terribly inefficient. For example, they:

Confusing and difficult to use

Crypto currencies are incredibly hard to use, something you don't want to happen with money.

False promises

Bitcoin and its proponents, when it started out, made a bunch of claims about its features. Subsequent crypto currencies made the same claims and even made additional ones. These include:

In conclusion

From a purely theoretical/computer science experiment point of view, crypto currencies are kind of interesting. But it's an experiment that left the lab a long time ago and spread like some kind of corona virus throughout the world, ripping people off and wasting other resources as it goes.

Technical and non-technical people alike are losing their shirts in this tulip-like bubble where they see not a day to day currency (as it was originally sold) but some always-going-up investment that no one can articulate. Bubbles burst, people!

Smelling easy money, additional hawkers and scammers are issuing their own currencies, Hoping they'll go up in value. We basically have private individuals & companies issuing their own "currencies" and people are buying into it. If the word "crypto" wasn't involved, no one would have given them a second glance. Some aren't even bothering making a distributed ledger and issuing software and are just taking (and running off with) the money directly in a standard Ponzi scheme (like "OneCoin").

So to conclude this long ran, I firmly believe there is nothing but bad things coming from crypto currencies. Say far away from it all, I say.