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> why pay the huge transaction costs and help the current crypto-rich get richer, instead of making purpose-built chains for your future applications?

the most convincing arguments i’ve heard for reusing an existing chain is 1) easier access to users, 2) easier to deploy and 3) if your application needs decentralization, a mature blockchain will be more secure (attacks like 51% attacks have higher cost) and reliable (in the uptime sense) than something you can deploy yourself.

> There's vague talk about "the backbone of future banking systems" or such for crypto as having similar fundamental value

another argument is that many cryptos are valuable because of “regulatory arbitrage”. bitcoin/monero/zcash are all easy ways to (partially) shelter your money from tax and legal regulations (hence why they are/were largely associated with drugs).



The regulatory arbitrage is a lie they tell themselves. Sure, drugs could be paid for by cryptos, but the ultimate utility of that money requires it to be transferred to fiat (aka, laundering). Unless all of your goods and services can be purchased using only crypto, the tax man and the gov't will always have this weak spot to target.


It's worse than that. Even if ALL your goods an services can be paid in crypto, the government can always demand that taxes be paid in fiat.




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