My response to Robert Reich’s comment on cryptocurrency
1) I think it’s a good thing to take money – the power to mint it and control it – out of the hands of government. Crypto also offers the possibility of evolving money in two important directions – #1: we can start tracking metadata for each transaction including real world resources and man-hours – ETH already has the vehicle for this, although it would take getting everyone to understand why it was a good idea to get it implemented #2: We can start using separate types of money for renewable and nonrenewable resources. Cryptocurrency helps open people’s eyes to the idea of ‘multiple types of money’ and could also be a vehicle to help facilitate this. Squishing all types of value into one type of money is resulting in us repeatedly doing stupid things.
2) The large use of energy is something that could easily be rectified. If instead of having all participants constantly hashing and scaling the difficulty needed by the total hashrate, we required participants to *occasionally* hash to prove they *could have* (replace the proof of work with a proof of capability of work) and to hash on demand (allowing the network both to get the hashes it needs to make the blockchain go and also allowing the network to challenge suspected cheaters to prove they really can turn over them hashes) we could reduce power exponentially. The huge power usage is because no matter how many participate, the payout per block is the same – and stupid numbers of people have started participating. We can design the network to still do what it does while using a lot less power than it does.
3) Blockchain technology offers us a lot of awesome possibilities, including the possibility of checking vote aggregation ourselves. So far it’s the wild west on the idea of using it for money/value, but the idea is a good one – governments would likely be much better behaved if we took the power of the purse away from them. This is not saying I don’t believe in funding government operations – but right now, my government is murdering massive numbers of people using my tax dollars, and I feel represented by basically Bernie, AOC, and no one else. Cryptocurrencies offer us the possibility of taking some power away from governments and I think that is a good thing
4) Some cryptocurrencies also use very little power while empowering a new way of building a communications network – I gesture you to Helium.
5) All that said – the future of cryptocurrencies as a vehicle for value is extremely unclear. No one should invest any money in them they can not afford to lose. It is also not at all clear what future cryptocurrencies based on a proof of work that uses hashing have post the advent of large quantum computers.
6) Most of the time I agree with you, but on this one I think you’re probably under informed and acting as a shill for people in power that are frightened – though whether that’s because they *don’t* understand blockchain or whether it’s because they do, I don’t know.