Cryptocurrencies, lauded for their decentralised and trustless nature, are more akin to a medieval economic system, according to Kai Stinchcombe. This is due to their lack of consumer protection, high transaction costs, and propensity for fraud. Cryptocurrencies lack the safeguards of modern banking, leaving users vulnerable to theft and scams.
Additionally, the decentralised nature of cryptocurrencies results in high transaction costs. Unlike centralised systems, which can process transactions efficiently, the decentralised nature of cryptocurrencies requires every participant to process every transaction, leading to high costs and slow speeds.
Cryptocurrencies are also susceptible to fraud. Without regulatory oversight, it’s easy for fraudulent schemes to flourish. This is evident in the numerous Initial Coin Offering (ICO) scams, where investors lose money to dishonest coin issuers.
Moreover, the promise of decentralisation is largely unfulfilled. The majority of Bitcoin is owned by a small group of people, creating a concentration of wealth that is even more extreme than traditional economies.
Finally, cryptocurrencies are not widely used for their intended purpose – as a medium of exchange. Most people hold them as speculative assets, hoping their value will increase. This lack of practical use, combined with the aforementioned issues, raises questions about the viability of cryptocurrencies as a replacement for traditional currencies.
Go to source article: https://medium.com/@kaistinchcombe/decentralized-and-trustless-crypto-paradise-is-actually-a-medieval-hellhole-c1ca122efdec