
Bitcoin and Ethereum Have a Hidden Power Structure, and It’s Just Been Revealed - etiam
https://www.technologyreview.com/s/610018/bitcoin-and-ethereum-have-a-hidden-power-structure-and-its-just-been-revealed/
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smitty899
"can help solve problems of financial inequality created in part by
traditional, centralized institutions."

How is cryptocurrency going to make lending money any less risk averse?

It's easier than ever to borrow money today, even if you are poor and have no
assets. I started my business on credit cards (from a traditional bank) as a
poor college student. I would have never been able to do this a couple of
decades ago.

However, APR is a direct correlation to the likelihood that you will actually
get paid your money back. Bitcoin isn't a magic bullet that will suddenly
change all of this.

It's also easier than ever to start a business. With a computer and an
internet connection, you can pretty cheaply start a business online and
actually make money.

Rather than cryptocurrency, financial education for the masses will be more
revolutionary.

"If digital currency allows wealth and power to pool in the hands of a few,
that’s not so revolutionary."

In a completely open and free system, this will eventually happen. If there
are regulations put in place to force decentralization, the whales/investors
propping up the high prices on these cryptocurrencies will leave.

Isn't this the the general idea of a union? IE: you centralize/pool your
resources together to strengthen your power. I don't see why it's any
different when it comes to cryptocurrency.

If anything, cryptocurrecies will hurt the lower class. The technology and
knowledge to actually trade it requires a certain level of education, which
leaves many people out.

I think of it like penny stocks with no regulations. I wish I would have put
some money into it 5 years ago.

~~~
andirk
It is not a stock with "no regulations". Coinbase does KYC according to
regulations.

Cryptocurrency doesn't make lending money less risk averse. Rather, it doesn't
use the financial institutions that caused the entire economy to collapse in
2008 with little punishment for those who allowed it. That said, smart
contracts in crypto are attempting to make agreements between parties
regulated, but by the code, not a shitty institution who is allowed to steal
from you without repercussion.

If you don't like the idea of crypto, consider all of the things you don't
like about banks. If you like the US's Federal Reserve style, then we see
things differently.

