Someone made several criticisms of cryptocurrencies which I respond to below.
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"Cryptocurrencies suffer from a limited utility (networks and exchanges)"
Such claims are often a source of great amusement in the future.
"By 2005 or so, it will become clear that the Internet's impact on the economy has been no greater than the fax machine's."
-- Paul Krugman
"rely exclusively on electronic media, none of which have any archival value beyond 100 years"
Most fiat dollars are just numbers in a mainframe hard drive too. And cryptos can be printed to paper wallets (or etched in titanium) if you wish.
"horrible stability"
Compared to what? Bitcoin has been much less volatile, and held its value much better than the dollar in its early years. You may recall that the value of the first version of the dollar collapsed entirely:
"In November of 1776, $19 million had been issued and one could still buy$1.00 worth of goods for $1.00 in paper. By November of 1778, $31 million had been issued, and it took $6.00 in paper to buy the same amount. By November, 1779 $226 million was in circulation and it took $40.00 in paper to buy $1.00 in goods. After that, it was all down hill. In April 1779, George Washington complained, “A wagon load of money will scarcely purchase a wagon load of provisions”."
https://dollarcollapse.com/inflation/hyperinflation-history-the-continental/
Bitcoin has also so far held its value much better than many modern currencies, such as the Venezuelan Bolivar, Argentinian peso, or the Zimbabwean dollar.
"can only be exchanged / traded in 1st world countries by tech-savvy population"
While it's true that most crypto adoption has been by tech-savvy Westerners so far, that's rapidly changing. Most people in the third world have access to cell phones capable of hosting crypto wallets. And adoption is growing rapidly:
http://reason.com/blog/2017/02/14/venezuela-localbitcoins-exchange
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"Cryptocurrencies suffer from a limited utility (networks and exchanges)"
Such claims are often a source of great amusement in the future.
"By 2005 or so, it will become clear that the Internet's impact on the economy has been no greater than the fax machine's."
-- Paul Krugman
"rely exclusively on electronic media, none of which have any archival value beyond 100 years"
Most fiat dollars are just numbers in a mainframe hard drive too. And cryptos can be printed to paper wallets (or etched in titanium) if you wish.
"horrible stability"
Compared to what? Bitcoin has been much less volatile, and held its value much better than the dollar in its early years. You may recall that the value of the first version of the dollar collapsed entirely:
"In November of 1776, $19 million had been issued and one could still buy$1.00 worth of goods for $1.00 in paper. By November of 1778, $31 million had been issued, and it took $6.00 in paper to buy the same amount. By November, 1779 $226 million was in circulation and it took $40.00 in paper to buy $1.00 in goods. After that, it was all down hill. In April 1779, George Washington complained, “A wagon load of money will scarcely purchase a wagon load of provisions”."
https://dollarcollapse.com/inflation/hyperinflation-history-the-continental/
Bitcoin has also so far held its value much better than many modern currencies, such as the Venezuelan Bolivar, Argentinian peso, or the Zimbabwean dollar.
"can only be exchanged / traded in 1st world countries by tech-savvy population"
While it's true that most crypto adoption has been by tech-savvy Westerners so far, that's rapidly changing. Most people in the third world have access to cell phones capable of hosting crypto wallets. And adoption is growing rapidly:
http://reason.com/blog/2017/02/14/venezuela-localbitcoins-exchange