Cryptocurrency is the future. It's taking control of our financial system from the greasy hands of fat cats and useless bureaucrats and giving it back to the people. It is decentralized. Transparent. Democratic.
Okay, sorry if you've been given that spiel before. Most of us have heard this recited by an overzealous partner, family member, or bad date who turned part-time evangelical for the Crypto Church when their Shiba Inu coin tripled in value.
"You should invest," they say, waving a colorful app that looks a lot like a video game.
As someone who has always been interested in the possibilities of technology, I am drawn to the idea of cryptocurrencies (digital currencies that use a decentralized database to track transactions). The idea of removing the friction that comes from middlemen and gatekeepers to see what happens as a result is exciting! Building Unique Digital Items (NFTs) or Transparent and Executable Rules Organizations (DAO) are some of the intriguing new tools in our digital arsenals built on the foundation of cryptography.
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But like any other technology, cryptocurrency isn't inherently a good thing just because it's new. As I mentioned in the latest edition of WebcamI think we have to approach all new technology with skepticism after seeing a generation of technology radicalize our uncles and foment genocide and violence to show us Snoodies ads.
The promoters are happy to overlook the dark side of cryptocurrencies. There are scams, endemic wild speculation and profit, and a catastrophic environmental impact. These problems are not unique to cryptocurrencies, but I think something that is considered "the answer" should answer a few more questions.
The difference of opinion between the promoters and the cynics can be easily explained: the former believe in the promise, the latter look at the reality of what we have now. Cryptocurrency promoters believe that many of the criticisms are transitory and not permanent. Critics disagree.
Let me give you an example of this gap. A month ago, I thought to myself, “Hey, your name is a technical reporter. How can you write about cryptocurrencies when you have never actually bought them? "
So I did it. I googled an exchange, which is the online marketplace where you can buy cryptocurrencies. I settled on a reputable and major exchange called Coinbase based on some online reviews. I set up an account on a nifty mobile app that needed me to present a government ID, which didn't work the first few times. When he finally accepted my passport, I found it ironic that he had to volunteer a large amount of personal information that is secured by the government in order to use this decentralized and supposedly anonymous technology.
I bought a combination of Bitcoin and Ethereum, the two biggest cryptocurrencies whose infrastructure unleashes most of the industry, using a credit card. Pretty easy, right? The purchase was made instantly, minus the fees charged by the exchange as an intermediary.
Over the next two weeks, I saw a lot of green (gains) and a few days of red (losses). The prices of the two currencies fluctuated for reasons beyond my control. All I knew was that the app was showing a rough upward trend for my portfolio, giving me a dose of dopamine every time I checked it.
As I prepared for this column, I thought it was time to sell and realize the fruits of my capital. He had won $ 42.75! Actually, it feels bad to say "I" did it. It just increased. But I'm fine with that.
That's when I hiccupped. Coinbase did not let me charge because I am Australian. Something that I had not discovered in my research was that the exchange was happy to take Australian dollars to buy cryptocurrencies, but would not let me sell them. Why? I'm not sure. But it seemed crazy that one of the biggest crypto establishments hadn't figured out (or didn't want to find out) how to be fully functional in a country like Australia.
I can't help but feel that a regulated technology would prevent a half-service from being offered.
This is crypto in a nutshell: despite the promise of a better world, many of the existing world's problems beset it and new ones are being invented at the same time. I'm still tempted by what could be, but it feels so far away. I want to believe.
That is what I want to cover in CryptoCam, a monthly column that will be your guide to the bullshit and optimism surrounding cryptocurrencies.
Oh. And please don't ask me how this will affect my taxes.
