
The Bear Case for Crypto - kuldeepkap
https://prestonbyrne.com/2017/09/01/the-bear-case-for-crypto/
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rspeer
I hear cryptocurrency fans defend taking the entire name "crypto" for their
hobby because "it's not confusing in context". Here's a headline where it's
confusing in context. The business case he leads with is even about
cryptography.

Crypto means cryptography. With any luck, it will still mean cryptography
after this speculative currency bubble bursts.

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abrkn
Many nephologists are still upset with cloud (computing)

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subru
They are distant enough that it's not confusing.

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noddy1
Great article. I agree with almost all of it.

Although I think all this highlights the massive unmet need for high risk
investment vehicles. The stock market has become huge, slow moving and boring,
where the already-rich make slow gains on top of their existing fortunes. The
only companies that bother to IPO anymore are basically pump and dump crap
(blue apron, snapchat). Private equity and VCs are snatching all the action
for themselves. Why the hell can't I invest in uber? I would take less equity
and provide more capital than all their current investors.

The ethereum network now provides everything we need to offer and trade equity
- etherdelta has shown that decentralized exchanges based on the ethereum
network work. So this really can't be stopped now. It may not occur in USA or
China's jurisdiction, but its going to keep happening.

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otp124
> It may not occur in USA or China's jurisdiction, but its going to keep
> happening.

Where will it keep happening?

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noddy1
ICO's will continue to originate from places with relaxed regulatory regimes -
Switzerland, the Cayman islands. And people in countries where this type of
capital raising is not permitted will find ways around it. KYC is very easy to
skip around when the only real contact required is sending ether from one
address to another.

I think permissionless offering and trading of securities is the killer app
for ethereum.

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otp124
So in that case only capital from the elite can flow into cryptocurrencies,
but not be used by consumers for transactions?

Edit: Wouldn't the lack of general consumer transactions ruin the economic
viability of most tokens? If so, then there is definitely a case for a bear
market.

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AndrewKemendo
_Wouldn 't the lack of general consumer transactions ruin the economic
viability of most tokens?_

Yes.

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dreit1
Cryptocurrency minted through these ICO's from a fundamental case represents
quantifiable ownership of a network. If many people are involved then the
network will continue value.

I always like to relate it to many of these tech networks like twitter which
will never make a profit. The twitter network itself is extremely valuable,
twitter the company is fundamentally not.

These networks will continue to be supported by their users, and that is how a
cryptocurrency derives it's fundamental value.

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arisAlexis
HN is always conservative with blockchain. It surprises me because yes this is
the tech industry but something radical is considered alien.

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poisonarena
mmm it's nice to get multiple perspectives, especially when your investing in
internet money ;)

