Personal Finance

4211 readers

42 users here now

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!

Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)

founded 2 years ago

MODERATORS

WandererLagomorph799@lemmy.ml

nieceandtows@programming.dev

nieceandtows@lemmy.ml

130

Cryptocurrency’s transparency is a mirage: New research shows a small group of insiders influence its value (theconversation.com)

submitted 1 day ago by otters_raft@lemmy.ca to c/personalfinance@lemmy.ml

21 comments fedilink hide all child comments

TLDR: meme coin rug pulls, among other issues around centralization

Crypto-believers often blame greedy financiers as the cause of the Great Recession in 2008. But we argue that crypto is not immune to these same risks.

Public blockchains operate on a distributed peer-to-peer network. This network provides each user a complete record of transactions that is updated in real time. Users can send digital cash between themselves without relying on a centralized authority.

Since each user has a full record of transactions, the system promises full transparency. But our research demonstrates that public blockchains, and the cryptocurrencies that run on them, do not actually replace trust with transparency.

Speculation, manipulation and market crashes remain very real dangers, regardless of whether the financial system is centralized or decentralized.

Centralization of power in the hands of insiders is still a major issue in the cryptocurrency space. This is particularly an issue for emerging cryptocurrencies like memecoins. Memecoins are a type of cryptocurrency named after internet memes or similar jokes. They draw their value entirely from speculation.

you are viewing a single comment's thread
view the rest of the comments

[–] superb@lemmy.blahaj.zone 3 points 1 day ago (1 children)

Are we sure that’s not just the size of the community? I’ve never heard of digibyte

[–] bjorney@lemmy.ca 2 points 23 hours ago

It's been around for a long time. It was very popular back in like 2017, but fell off because it's value proposition was "we are a shitty fork of the Litecoin codebase with a few constants changed (which was in itself a shitty fork of the Bitcoin codebase with a few constants changed) and no other meaningful changes"