It turns out that crytocurrencies are not decentralized with one company controlling more than 25% mining capacity of one of the most popular ones. The top miners control nearly half of the total mining capacities. If you look at it the other way round, those guys are the ones “printing the money”. I will prefer government to print my money than 3 people controlling a currency I use. I do believe that crypto is a fraud and an illusion. Yes, it is an illusion to think that you can run away from government when you live under government. No African country has the technical capacity to lead the mining. The miners are the new “central banks” and if you trust them, I simply pity you.
Here, Nouriel Roubini in Milken Global Conference said that cryptocurrency is one of the bigger scams humanity has ever seen. Two highly regarded blockchain entrepreneurs took the opposite view in what proved to be a highly entertaining cryptobrawl. Watch video below.
“Everything you just said is irrelevant,” shot back Alex Mashinsky, a blockchain entrepreneur who was an early developer of the Voice over Internet Protocol standard. “I don’t even know where to begin,” Bill Barhydt, who worked on cryptography for the CIA, responded to Roubini.The moderator, Reuters journalist Anna Irrera, called for a time out to cool things off. Then the feds weighed in. “I may need to step in and regulate this panel,” said Brent McIntosh, general counsel for the U.S. Treasury and another panel participant.Billed as a sober discussion to a ballroom where every seat was filled, the panel meandered into shouting and crosstalk. Passions are running high nearly everywhere in crypto. Many predict the likes of Bitcoin and Ethereum will change the world. Others see failure looming.
Warren Buffett does not like cryptos. He sounds like the man on the right in the video above.
Buffett’s record on tech investments is mixed. He rightfully resisted the excesses of the dot-com bubble, yet calls his decision to bypass on Amazon and Google mistakes. (He was also asked today why he’s not invested in Microsoft, with founder Bill Gates sitting just a few feet away; Buffett said their friendship could breed accusations of insider trading.) But on cryptocurrencies, he is unequivocal.
“Cryptocurrencies will come to bad endings,” said Buffett, 87. He then turned to his business partner, Charlie Munger, another outspoken crypto skeptic (paywall).
“I like cryptocurrencies a lot less than you do,” replied Munger, 94. “To me, it’s just dementia. It’s like somebody else is trading turds and you decide you can’t be left out.”
---Visit our Store for my books, cases, frameworks and more. Now, enjoy our consolidated subscription for all contents (past, present and future).
-- We offer Advisory Services (tech, strategy & Africa).