Crypto

Money serves three purpose - unit of accounting, a medium of exchange, and a store of value. Cryptocurrencies have been compared to Programmable Money. Anything programmable requires an experimentation platform for iterations and improvement. Bitcoin seems to have won the “store of value” battle. Ethereum has the developer mindshare and is the preferred experimentation platform. Multiple cryptocurrencies are still fighting the battle to be the medium of exchange. The amusing part is that every cryptocurrency startup envies Ethereum’s developer ecosystem and is trying to attract developers....

Background There are three major types of financial exchanges Stocks and bonds Commodity exchange Foreign exchange (Forex)

All cryptocurrencies are eventually tied to a “private” key. You lose this key, and the funds are gone, forever. Millions worth of bitcoins have disappeared from the circulation due to lost keys. You can memorize the key by mapping it into passphrase consisting of memorizable words but if you forget that, like many others, the coins are unrecoverable. An alternative is to trust a centralized service like Coinbase, but then all the benefits of investing in a decentralized currency are gone....