Understanding Crypto 5: Stephen Diehl: The Case Against Crypto

<p>Welcome back to another limited series of Rational Reminder Podcast, focused on learning about cryptocurrencies. Our journey about cryptocurrencies has led us to speak to various experts on the subject, all of whom see some benefits to cryptocurrencies and the underlying blockchain technology. However, what does a skeptic think about cryptocurrencies and the benefits to the current financial system? In today’s episode, we speak to Stephen Diehl, a software engineer who works with financial technology within the finance sector and is an outspoken cryptocurrency skeptic. His engineering background, coupled with his experience working with financial technology, provides a unique perspective on the future of cryptocurrencies. We move through the episode learning about public blockchain technology, different consensus mechanisms, what potential problems blockchain technology can solve, whether crypto can improve the current financial system, if Bitcoin really is decentralized, what drives crypto prices, reasons why crypto will not work, what makes it similar to gambling, and more. Tune in today to hear a unique opposing view of cryptocurrencies and DeFi technology with expert and skeptic, Stephen Diehl!</p> <p> </p> <p><strong>Key Points From This Episode:</strong></p> <p> </p> <ul> <li>A brief breakdown of public blockchain technology. <strong>[0:03:28]</strong></li> <li>The current problems that public blockchain technology is trying to solve. <strong>[0:04:16]</strong></li> <li>Proof of work consensus and how it tries to eliminate the need for a trusted third party. <strong>[0:05:44]</strong></li> <li>Some of the downsides associated with the proof of work concept. <strong>[0:07:41]</strong></li> <li>How other consensus mechanisms have improved the proof of work concept. <strong>[0:09:21]</strong></li> <li>What the costs associated with proof of stake relative to proof of work are. <strong>[0:11:09]</strong></li> <li>Problems that both consensus methods have regarding recentralization. <strong>[0:12:07]</strong>