Cryptocurrency news

Cryptocurrency News: Cryptocurrencies Do None Of Its 3 Traditional Functions: Gavin Jackson

Designed to be completely private and unrelated to governments, can cryptocurrency be the future of money? Well, until now these decentralized electronic tokens have generally not worked very well as currency because they don’t perform any of its three traditional functions, according to a new book by London-based financial writer Gavin Jackson.

“Their price has been extremely volatile: using them as a means of account would amount to changing the price of goods and services daily according to the advice of speculators. This also makes them an insufficient store of value: while their price has often exploded upwards – helping some of the early adopters exploit them or bet on their value to become millionaires – there’s little guarantee you’ll be able to preserve that buying power for the future,” Jackson writes. “Money in One Lesson: How it Works and Why” was recently published by Pan Macmillan.

The author says that cryptos have also struggled as a medium of exchange. Algorithms make them secure, but the sheer volume of computing power needed to provide proof of security has made small transactions prohibitively expensive, the author explains.

On top of that, Jackson says the size of the potential deal market is also limited. “The majority of people are, for better or worse, indifferent to their online privacy: outside of illegal drugs and sex work, there has been only limited demand for anonymous currency. most of the public, the values ​​of the creators of cryptocurrencies – freedom, secrecy and privacy – are of far lower priority than the convenience and reliability of public funds.”

Perhaps the most promising use case for the technology is for activists and protesters facing oppressive governments – those who risk persecution for their activity but need a way to be able to buy and sell the services they need.

Activists, however, have found that cryptocurrencies aren’t particularly useful, although they can often be better than the alternatives, as internet connections can be cut by governments.

“Financial transactions need to be accompanied by more traditional messaging, using a service the government can monitor or ban – being able to transfer money secretly is useless if you can’t contact your funders securely,” says the book adding that so far its downsides mean that Bitcoin has mostly appealed to futurists, libertarians, hobbyists and criminals, as well as speculators and the kind of fraudsters and low-level lucky people that come with every new financial technology .

“Their price skyrockets for no apparent reason, attracting those who want a get-rich-quick scheme like some sort of high-tech lottery ticket or Beanie Baby. Many hedge funds have also tried to sell their clients on the idea. that both will benefit if the fund trades bitcoin on their behalf.”

Although popular among younger investors, investment legends have spoken out against the new asset class. “Big Bull” Rakesh Jhunjhunwala said that cryptos will crash one day. Charlie Munger, on the other hand, described it as a “venereal disease” that is under contempt.

“At the age of 98, the condescending manner in which he (Charlie Munger) talks about cryptocurrency really worries me,” high-value investor S Naren recently told when asked. asked about his views on digital tokens.