Altcoins Talks - Cryptocurrency Forum
Learning & News => For Beginners => Basic Questions about Cryptos => Topic started by: EluguHcman on February 13, 2024, 08:14:51 AM
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What do we have to trust crytop that is if a decentralized non-custodial currency at where the investors stays anonymous and the P2P transacting merchandises too tends to stay anonymous couple with the fact that frauded transactions could be untraceable and any transactions mistakes such as mistakenly sending to another wallet would be unrevisable and yet individuals stores their their assets and not just funds in there so comfortably without panics but they don't rely their trust with the traditional fiats where there is an existing financial regulatory authorities whom would tend to give you a financial security assurance?
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There's saying "The responsibility that comes with freedom". Many cryptocurrency offer you that freedom (only you can move your coin), which means you're expect to be responsible (e.g. double check you send to correct sender with correct amount). And FYI, most coin actually can be tracked with some effort.
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What do we have to trust crytop that is if a decentralized non-custodial currency at where the investors stays anonymous and the P2P transacting merchandises too tends to stay anonymous couple with the fact that frauded transactions could be untraceable and any transactions mistakes such as mistakenly sending to another wallet would be unrevisable and yet individuals stores their their assets and not just funds in there so comfortably without panics but they don't rely their trust with the traditional fiats where there is an existing financial regulatory authorities whom would tend to give you a financial security assurance?
It took me a while to clearly understand what you were trying to pass across. It looked more like an educative post at first, but the question mark that appeared in the last word makes it sounds more like a question. Please, for forum and other members sake, try as much as possible to read your content before hitting the post button.
For those who might find it difficult to comprehend what the OP is asking, Here is a possible revised interpretation:
Why do we have to trust crypto which comes with anonymity, issue of untraceable fraudulent transactions, and irreversible approved transactions to unknown addresses, over banks that offers financial security assurance and the opposite of what crypto offers?.
Well, here is my answer: the major purpose why Bitcoin was introduced was to create a new financial system were most people would be in control of their own wealth, i.e becoming their own bank. Certainly, the behind the scene actions of financial institution must have ignited the need to create a new financial system. There is nothing bad in holding your own funds 24hrs and approving your own transactions at your own convenience. just as @ABCbits has said, " you're expected to be responsible". This also applies to other coin.
The issue of using crypto for fraudulent purpose is a sad situation, but it's so unfortunate that those who clearly hate crypto make noise with this. Fiat currency, gold, silver, nuclear weapons, etc, are also used for fraudulent purposes too, so let's learn to balance the equation and not shift the blame to one party.
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I don't believe that there is anybody who doesn't trust the traditional money system, like Fiat cash. People are only investing in Bitcoin or cryptocurrencies because of the devaluation of local currencies. If local currencies had the ability to appreciate in value, then people would have held their money in fiat because they believed that it would appreciate in value, but because Bitcoin is able to generate huge profits for some people, that's why they decided to see it as their best option for holding their capital with the aim of making a profit.
In my country, there are people known as local forex traders. What they do is buy different foreign currencies whose value usually goes above our local currency. They hold the local currencies until the value goes high, then sell them at a higher rate to people who need them. Most people who are into this kind of business are usually rich because they make a lot of profit. That's to say that people still trust the local currencies too.
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What do we have to trust crytop that is if a decentralized non-custodial currency at where the investors stays anonymous and the P2P transacting merchandises too tends to stay anonymous couple with the fact that frauded transactions could be untraceable and any transactions mistakes such as mistakenly sending to another wallet would be unrevisable and yet individuals stores their their assets and not just funds in there so comfortably without panics but they don't rely their trust with the traditional fiats where there is an existing financial regulatory authorities whom would tend to give you a financial security assurance?
Put your crypto in a wallet that you have control control, not on exchanges, that is the first rule and that's how you trust crypto than fiat. Because it fiat, specially if you put it banks, there are reasons that you can't even withdraw your own money.
I urge you to read this one article,
https://www.cbc.ca/news/world/beirut-bank-hostage-standoff-1.6548279
An armed man demanding a Beirut bank let him withdraw his trapped savings to pay his father's medical bills took up to 10 people hostage in a seven-hour standoff Thursday before surrendering in exchange for what a family lawyer said was $35,000 US of his money.
https://www.cbc.ca/news/world/beirut-bank-hostage-standoff-1.6548279
But with crypto, your money is yours, you can withdraw it anytime without getting trap or going to the course that this man did just to get his money because he needed it for his father's emergency.
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What kind of crypto?
Not all of cryptos are trustworthy, most of them are shits as we can see how many shit coins are coming here. So, it is probably only a few coins that are trusted, especially top coins. And this is just a small part of the huge number of cryptos here. So there must be an emphasis on crypto first.
If we talk about Bitcoin, this is actually quite convincing. Because Bitcoin's main purpose is to become a global currency that can be used without any interference from government regulations. However, as time goes by, it turns out that this is difficult to do because there are various restrictions and regulations from the government that force us to remain submissive.
So regarding whether it is trustworthy or not, Bitcoin is actually very trustworthy, but unfortunately it cannot be used like fiat as usual.
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There is no 'trust' in the BTC network, it is all open source and you can verify things for yourself, it is also not anonymous, the BTC blockchain is a public ledger that is transparent and you can see info about every tx. You use BTC because you want p2p electronic cash that is permissionless and censorship resistant, i e. If you want to control your money with no third party, you use BTC; it is as simple as that.
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What do we have to trust crytop that is if a decentralized non-custodial currency at where the investors stays anonymous and the P2P transacting merchandises too tends to stay anonymous couple with the fact that frauded transactions could be untraceable and any transactions mistakes such as mistakenly sending to another wallet would be unrevisable and yet individuals stores their their assets and not just funds in there so comfortably without panics but they don't rely their trust with the traditional fiats where there is an existing financial regulatory authorities whom would tend to give you a financial security assurance?
First off this is written like total crap or shit or garbage.
Basically as I understand it you ask "how or why do we trust crypto when it has shown us to be filled with theft"
Answer is good crypto is trustless. You do not trust it.
This means you do your own research and find at least 2 offline wallets for your coins.
It means you have at least 2 online wallets for coins.
IT MEANS YOU HAVE AT LEAST 2 EXCHANGES FOR COINS.
Once you have the six things above it means you must understand that only the offline wallets are safe.
simple method
10 units of wealth in offline wallet 1
10 units of wealth in offline wallet 2
1 unit of wealth in online wallet 1
1 unit of wealth in online wallet 2
1 unit of wealth in exchange 1
1 unit of wealth in exchange 2
this is pretty much the way to use crypto correctly.
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I may not have to trust all cryptocurrencies but I trust bitcoin, this is what I know and have seen happening with every other person using it to be satisfied by the way bitcoin was planned under the protocols of it's whitepaper, bitcoin is not what we just hear for the hearing sake, we use it and make it for our daily lives economy and financial managements, because we needed to have our privacy taken away from us long time ago into use.
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What do we have to trust crytop that is if a decentralized non-custodial currency at where the investors stays anonymous and the P2P transacting merchandises too tends to stay anonymous couple with the fact that frauded transactions could be untraceable and any transactions mistakes -cut-
In the start, I also feared the same thing, but it is what it is, you are the only person responsible for your assets, here you made one wrong move there you lost your funds, even if you are using centralized platforms like CEXs, your actions are the only reasons that can lose your money. For example, connecting a wallet to a spammer's website or clicking on compromised links, etc.
Talking about assurance, there is no assurance here, I also lost my funds two times, one time when I selected the wrong blockchain which was not yet integrated on Binance and I sent funds on it, and a second time when I gave the address on the bounty and it turns out to be a wrong address and by rewards goes to a person whom I don't know. I tried to contact that person when I found out his twitter handle but got no response then I regret and face the same fear you are expecting now.
Therefore, crypto makes you responsible, disciplined and well aware of your acts. Its not bad, its a good thing.
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There is nothing to distrust local currency, besides trusting local currency there are some crypto currencies that we must trust. Trust is not forced, there are some cryptocurrencies in the market that are trusted. Those who are involved in crypto currency must know what are the trusted coins in the market. All the coins in the market that are reliable are all the coins that are trusted. Those of us who are involved in investing know very well which coins to invest in will keep our money safe and which coins to invest in which are comparatively less risky. We always have to trust local currency because we use local currency for all day to day transactions but there are some crypto currencies which can be trusted as local currency.
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Cryptocurrencies are much riskier than traditional fiat but Bitcoin has no inflationary effects but traditional currencies definitely have inflationary effects. Whereas the supply of Bitcoin is limited while the supply of traditional fiat is unlimited, inflation can occur at any time during traditional fiat when the supply can be increased at will. Moreover, the value of traditional fiat will decrease drastically over time due to inflation even when kept in the bank. But this risk does not exist in crypto currency.
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What do we have to trust crytop that is if a decentralized non-custodial currency at where the investors stays anonymous and the P2P transacting merchandises too tends to stay anonymous couple with the fact that frauded transactions could be untraceable and any transactions mistakes such as mistakenly sending to another wallet would be unrevisable and yet individuals stores their their assets and not just funds in there so comfortably without panics but they don't rely their trust with the traditional fiats where there is an existing financial regulatory authorities whom would tend to give you a financial security assurance?
Using the traditional fiat currency doesn't give you the immunity over scammers and fraudulent activities, Your hard earned money could still be swindled in a bit so that's not even an excuse to choose fiat over crypto.
Again, crypto is decentralized, meaning no one but you has the ability to call the shots when it comes to your money without any sort of interference, it gives you total control.
Again, just look around you and see just how inflation has messed up the traditional fiat currency in so many ways. Hold $1000 for 2 years and watch if the value would still be the same, definitely not, you'll definitely be in loss. But try holding BTC for 2 years and more, then you'll definitely see the difference.
There are so many reasons which I can't list, that'll prove that the traditional fiat isn't any match to cryptocurrency.
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When it comes to trust, it seems that fiat is superior to trust. Moreover, they are centralized under government control. And usually there are institutions or institutions that hold and enforce fiat. But that doesn't mean crypto doesn't have a role and isn't as valuable. In fact, crypto provides various opportunities for all of us so that we can really get various benefits from there. but what is certain is that we ourselves are in control of how our assets will be safe. So, don't be too trusting of anyone in the crypto world, including the online exchanges or wallets that we use. Well in terms of trusted or not compared to fiat. Honestly, Crypto is not to be trusted or not.
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What do we have to trust crytop that is if a decentralized non-custodial currency at where the investors stays anonymous and the P2P transacting merchandises too tends to stay anonymous couple with the fact that frauded transactions could be untraceable and any transactions mistakes such as mistakenly sending to another wallet would be unrevisable and yet individuals stores their their assets and not just funds in there so comfortably without panics but they don't rely their trust with the traditional fiats where there is an existing financial regulatory authorities whom would tend to give you a financial security assurance?
What do you mean trust? Do you mean that if your money will be in secured place? If so, then you could really trust crypto. However, not all cryptocurrencies are non-custodial, meaning not all are good to trust and not all what they say is what they really put in their smart contracts. That's why we should really check in them very well because there are lots of cases on that but fortunately this kind of stuff did not succeed because there are fellow crypto users are good at it. The best cryptocurrency to trust is no other than Bitcoin, all transactions are visible and the number of address who hold it is identifiable. Meaning you can determine if the coin has a risk of dumping the price or not base on this information. That's why I could really trust crypto than fiats.
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Cryptocurrencies are much riskier than traditional fiat but Bitcoin has no inflationary effects but traditional currencies definitely have inflationary effects. Whereas the supply of Bitcoin is limited while the supply of traditional fiat is unlimited, inflation can occur at any time during traditional fiat when the supply can be increased at will. Moreover, the value of traditional fiat will decrease drastically over time due to inflation even when kept in the bank. But this risk does not exist in crypto currency.
Indeed, inflation has proven to be one of the biggest threat to the traditional fiat currency, while this is a disadvantage for fiat, it's one the greatest advantages of cryptocurrencies like Bitcoin. Since Bitcoin has a fixed supply, it has made it immune to inflation and can also act as a hedge against it.
Again, unlike the traditional fiat currency which can be easily devalued by the government or the central banks, cryptocurrency value is determined by the market and can't be subjected to any central authority. So crypto has proven extremely useful to people who seek for ways to protect their funds from government interference or inflation.
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Maybe because you've been hearing a lot about the downsides/disadvantages of cryptocurrency, you seem to be hesitant about this digital currency. It's true that some of the traits you mentioned are real, but if we focus too much on these shortcomings, we might get overly influenced and scared to give it a try.
Look at the bright side, with cryptocurrency, we can make transactions without going through KYC hassles. We can also send assets across borders without complex and costly administrative fees. Moreover, we can still maintain our privacy when using crypto, among other benefits.
Try to influence your mindset with some of the advantages of cryptocurrency, so you can see that innovation is created to improve something that already exists.
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There are many ways I've trusted cryptocurrency and bitcoin to be precise than the way i have with fiat, if we look at the reason behind what prompted Satoshi Nakamoto to sit and make an alternative digital currency to help the people have an alternative to the use of fiat because we have lost our trust and privacy in them, inflation also affect the network of our assets while in fiat than when we are holding in bitcoin.
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There's saying "The responsibility that comes with freedom". Many cryptocurrency offer you that freedom (only you can move your coin), which means you're expect to be responsible (e.g. double check you send to correct sender with correct amount). And FYI, most coin actually can be tracked with some effort.
Is it also revisable if there goes a misdirection of the transaction?
I have come across individuals done mistakes sending money to the wrong direction so the banks helps in reaching out to the receiver in request to re-send back the received fund and if by any way the receiver doesn't agree to send back the money then the bank would keep the receiver bank account on track for recovery of the fund without the account holders permits.
Although there would be a permission gadgets between the senders bank and the receivers bank before such process can be possible.
So is there a system like that?
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because we have lost our trust and privacy in them, inflation also affect the network of our assets while in fiat than when we are holding in bitcoin.
Yes, you are right. Bitcoin was actually designed to give men back the privacy they have lost to Fiat traditional currencies, but right now the government, which is greatly against privacy, is fighting to bring Bitcoin to a centralized and open system where they can monitor it as they want, and as long as the Bitcoin network remains the way it is, not every Bitcoiner will allow their privacy out. That's why there are Bitcoin mixers to help mix your coin so as to make it not be very traceable if you want it like that.
Like you said already, @Aanuoluwatofunmi, our fiat money keeps losing value and getting inflated, but Bitcoin is a very appreciative asset, which has really helped so many people to give great value to them because they invested their money in Bitcoin.
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Is it also revisable if there goes a misdirection of the transaction?
I have come across individuals done mistakes sending money to the wrong direction so the banks helps in reaching out to the receiver in request to re-send back the received fund and if by any way the receiver doesn't agree to send back the money then the bank would keep the receiver bank account on track for recovery of the fund without the account holders permits.
So is there a system like that?
No!
You could get lucky and deposit by mistake to an address that belongs to an exchange or be able to reach the owner of that address and convince him to send you back your coins but there is no authority or customer support to help you with that. All you can do is try to identify to whom you have sent those coins and force him to give them back though the lawful procedure, meaning suing him.
The best cryptocurrency to trust is no other than Bitcoin, all transactions are visible and the number of address who hold it is identifiable. Meaning you can determine if the coin has a risk of dumping the price or not base on this information. That's why I could really trust crypto than fiats.
You really take those spam whale alerts seriously? When was the last time something meaningful happened after one?
And this is the reason you trust crypto, because you can see balances, there are like 1001 other advantages and you've chosen those?
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There's saying "The responsibility that comes with freedom". Many cryptocurrency offer you that freedom (only you can move your coin), which means you're expect to be responsible (e.g. double check you send to correct sender with correct amount). And FYI, most coin actually can be tracked with some effort.
Is it also revisable if there goes a misdirection of the transaction?
I have come across individuals done mistakes sending money to the wrong direction so the banks helps in reaching out to the receiver in request to re-send back the received fund and if by any way the receiver doesn't agree to send back the money then the bank would keep the receiver bank account on track for recovery of the fund without the account holders permits.
Although there would be a permission gadgets between the senders bank and the receivers bank before such process can be possible.
So is there a system like that?
Non-centralized cryptocurrency or token doesn't offer such thing (reverse transaction or create new refund transaction without receiver consent), while few centralized cryptocurrency or token offer such thing. Although usually they either,
1. Don't bother help you when small amount of money is involved.
2. Ask for certain amount of fees.