Regarding cryptocurrencies, they are gold or casinos

In recent times, there has been a tremendous deal of discussion around cryptocurrencies. I have already written an article about them, so I cannot change my opinion. It is possible that I will overlook any significant aspects or advantages they might offer. To look and read, I have logged into a significant number of forums. In each and every venue, Mr. Buffett is praised for his excellence as an investor. The same people, however, also rave about Bitcoin. There are, without a doubt, individuals who openly express their opposition to these cryptocurrencies. I wanted to know where Mr. Buffett invested and what he thought. He believes they have no useful action coefficient, so he hasn't invested. My viewpoint is exactly the same. Online forums often compare bitcoin to gold. No words come to mind. Gold, in addition to being a raw resource that is utilized in a wide variety of applications, ranging from manufactured goods to ornaments, may also be traded for anything. One way to think about Bitcoin is as a form of cryptographic lottery. The only way for others to profit is if more money comes in, allowing them to lie and predict when bitcoin's price will rise. Alternatively, the price could decline and the market could experience sufficient volatility to facilitate sales. This idea is only going to excite folks who are looking to become wealthy in a short amount of time. Although it is possible that this could be advantageous for certain people as a lottery and calculation, I do not believe that there is a way out of making a real investment in a business or creating surplus value through the use of cryptocurrencies. How many people would be content with such a salary? Additionally, there is uncertainty. Government-created money offers an escape route. due to the fact that they might be regulated and, in some way, not have a lot of volatility. Just for a moment, let us say you receive a wage, but the next month, you are uncertain about your level of life. Consequently, I am unsure if it is a Ponzi scheme or simply a situation in which a large number of individuals potentially lose a lot of money that they have worked very hard to obtain. When we talk about a casino, we are referring to a place where you have to place many bets, and the danger is not that you have invested in the company; rather, the risk relies on luck. It is one thing to put money into a company, but it is an entirely different thing to wager on a card, a chip, or a brand-new game. If you know when people buy or sell, your odds of winning here are better than winning the lottery. This, however, is not an investment; rather, it is a casino. This is not a personal attack; I am simply expressing my opinion. 

Author Sezgin Ismailov

An Ordinary Person's Opinion About Cryptocurrencies

To be honest, my knowledge of cryptocurrencies is limited. I've perused some online articles and listened to the buzz, but I'm primarily observing from a distance. I comprehend some of the purported advantages—the application of blockchain technology and its potential to transform other aspects of the internet. It’s innovative; I’ll give it that. However, the fact that we still don't know who created Bitcoin, the original cryptocurrency, is a significant concern. In this age of massive data collection and widespread surveillance, how can someone remain completely anonymous? It just seems a little…suspect. Validators will control transactions. I don't really understand the technicalities, but from what I understand, it's not really decentralized. It's more like a parliamentary system. But a decentralized parliamentary system has its drawbacks, and it makes me wonder how those drawbacks will play out in the future. Who is ultimately responsible if it all collapses? Who bears the ultimate responsibility? One of the biggest drawbacks, in my opinion, is the lack of a central authority. Every country has its own official currency, issued and regulated by a central bank. But with crypto, anyone with the right computer skills can create their own digital currency. Last I heard, there were already over 5,000 different cryptocurrencies! I wouldn’t be surprised if the number eventually climbs into the hundreds of thousands. Is it reasonable to anticipate that these new, random cryptocurrencies will maintain their value? It appears that this situation could lead to chaos. I observe individuals rushing into cryptocurrency investing with the expectation of achieving rapid wealth. They read a few articles and suddenly believe they are financial experts, but do they truly understand what they are investing in? Are they familiar with the technology behind it? Probably not. But the question is inevitable: will governments and big banks allow it? Will they let people do whatever they want with their money? I find it highly unlikely. It seems likely that big banks, with their established customer bases, will eventually create their own cryptocurrency and start charging transaction fees. It seems logical. Another big concern I have is security—specifically remembering and managing passwords. If you forget your password, what happens to your cryptocurrency? Could it potentially vanish into the digital ether? That’s a huge problem that doesn’t exist with traditional banks. And what happens when someone who owns a significant amount of cryptocurrency dies? In a normal bank, you have access to your heirs. How does this transfer of wealth work in the world of cryptocurrency? I have no idea. Of course, I understand the appeal of using cryptocurrency for illegal activities or for avoiding taxes. But if no one pays taxes, who will fund public services like infrastructure and law enforcement? You can’t have a functioning society if everyone is dodging taxes through cryptocurrency. Imagine a future where major companies create their own cryptocurrencies. Amazon only accepts AmazonCoin, Walmart only accepts WalmartBucks, and McDonald's only accepts McCoins. How would an average person manage in such a situation? You'd need a smartphone loaded with different cryptocurrency wallets, and you have to remember a dozen different passwords just to buy groceries. Honestly, I think the potential downsides of cryptocurrencies outweigh the advantages. Perhaps a more regulated approach would be better. Perhaps if each continent (Latin America, North America, Europe, and Asia) had its own digital currency, plus a global currency as a base, things would be more stable. Perhaps if each government controlled a single digital currency, that would prevent the market from becoming completely saturated with worthless coins. If cryptocurrency could be anchored in a secure, stable foundation and protected from those who would seek to exploit it for malicious purposes, perhaps it would have a more secure future. But right now, it seems like we’re living in a fantasy. A third of the world’s population still struggles to access basic necessities like clean water. Embracing this speculative madness when so many people are grappling with basic needs feels somewhat absurd. That said, I do believe that the volatile fluctuations we're seeing now will eventually lead to the emergence of more legitimate and stable digital currencies. I wouldn't venture to predict exactly how it will unfold, but my guess is that the large, financially stable, and technologically advanced countries will be the ones to shape the future of digital currency. Finally, I can't ignore the environmental cost of cryptocurrency mining. The amount of energy consumed by the process is staggering. We need to prioritize environmental protection, and that includes finding more sustainable ways to power the digital world. If I live to see a time when digital currencies are absolutely necessary, then I will need to buy a smartphone. So what, I have to keep all my wealth in my pocket. I can't imagine how people can become targets. We are fighting for a better world. But it will become more dangerous. Currently, it is evident that countries and their systems are not functioning optimally. Could we consider moving beyond divisions based on race and religion? When will we start calling ourselves earthlings? When will everything become unipolar?

Author Sezgin Ismailov