Cryptocurrencies pose significant risks due to their decentralised nature, including facilitating illicit activities, enabling tax evasion, and disrupting monetary policy. They are also highly volatile, leading to potential financial instability. Moreover, their environmental impact is substantial due to the energy-intensive process of mining.
Blockchain technology, often hailed as revolutionary, has not lived up to its promise. Despite widespread enthusiasm, it has yet to find a killer application outside of cryptocurrency. Most touted uses are either impossible or better achieved without blockchain.
There are valid use cases for cryptocurrencies and blockchain, such as in countries with hyperinflation or where governments restrict access to foreign currencies. However, these are niche applications and do not justify the widespread adoption of these technologies.
Regulation is needed to mitigate the risks associated with cryptocurrencies. However, this is challenging due to their global nature and the lack of a central authority. The anonymous nature of cryptocurrencies also makes them difficult to regulate.
Cryptocurrencies and blockchain are not inherently bad or useless, but their potential benefits are often overstated while their risks are downplayed. A balanced approach recognising both the potential advantages and disadvantages is needed.
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