Why Vivaldi will never create ThinkCoin | Vivaldi Browser

Cryptocurrency has been touted by many as a revolution in currency, the future of investment, and a breakthrough technology. But if you look beyond the hype, you’ll find nothing more than a pyramid scheme posing as currency.

It’s basically a digital commodity, though one without government backing or banking system support. Claiming to be the new digital currency of the internet, cryptocurrencies promise decentralization and freedom from governments.

Each cryptocurrency typically follows a certain recipe to ensure that the founders create a lot of wealth, a way to distribute the currency to give it legitimacy, and some story on how it is different from all the others.

But since cryptocurrencies are too volatile to be used as an actual currency, people treat it as a sort of investment scheme. The problem is that to extract actual money from the system you have to find someone willing to buy the tokens you are holding. And this is only likely to happen as long as they believe they will be able to sell them on to someone who’ll pay even more for them. And so on, and so on.

If at any point one stops being able to find people willing to buy those tokens on just the promise of them being worth more in the future, the whole scheme might well come crashing down, with the value of all tokens going to zero.

Source: Why Vivaldi will never create ThinkCoin | Vivaldi Browser