The scalability of Bitcoin has burst. The trust in Ether is toast. All other ‘shitcoins’, released in dodgy initial coin offerings, have hit the dust. It is the end of crypto mania. Why so?
Your blogger will have a unit in one of the cryptos. He will be given a key upon purchase, to secure the wallet. He will jot down the key in a piece of paper. He will misplace the paper. With that, all his crypto wealth, will vaporize.
The value was minimal, there was no mourning. But it shows the treadmill life of the crypto millionaires. Ensuring security of their wealth, is akin to a game of roulette.
Vatalik Buterin, the founder of Ether, a crypto, has recently formulated the ‘inconsistency trinity’ theory of cryptos. He avers that it is impossible, at the same time, to assure scalability, decentralisation, and security of cryptos. This admission, unfortunately, herald the eventual end of cryptos.
For cryptos have to be scalable, to create value and utility. They have to be decentralised, to be out of regulatory control. They have to assure security, to be trusted. None of these pillars can be sacrificed and have a tenable crypto ecosystem.
But this is not possible, as Vitalik admits. The crypto mania is deal. All cryptos, apart from the first mover Bitcoin, are just shitcoins, created by carnival backers and scammers, with price manipulated by criminal insiders, with lots of front running and insider dealings. They are useless heaps of sh*t. Even the so called tokenisations are just con schemes.
However, Bitcoin may remain for a while, not as a currency, but as a digital commodity. Bitcoin will survive because Satoshi Nakamoto, the inventor of Blockchain, seems to have been driven by good ideals, of removing financial transaction from controlled financial system.
Bitcoin is also not scalable, and has little value on life of humanity. Efforts to ensure that Bitcoin is used as a unit of measure have failed. There have been two hard forks, where they have created SegWit2 (Segregated Witness two), birthing Bitcoin Cash and Bitcoin Classic. This, too, has failed. Transaction costs with Bitcoin are just ridiculous. The mining is a an economic disaster, due to high energy consumption.
Patrick Njoroge, the governor of the Kenyan central bank, has hailed the technology behind Bitcoin, as having utility. Blockchain is overrated junk. Your blogger has attended workshops, where frenzied pretenders, are hailing blockchain as the solution to all problems facing humanity, from fighting poverty to financial inclusion. Like what a hell? Its just distributed ledgers. Just a fancied spreadsheets.
We come back to crytos. These scams have met the end of the road. Bitcoin may remain as a commodity, for the supply is capped to only 21 Million units. But all other scam coins, the shitcoins, rest in peace.