By Bob Gaydos

The original cryptocurrency.

   I admit it. I’m a crypto cynic. I didn’t get it from the start. Still don’t.

       Who created it? Why? What was the point? What was the need? I could already spend money in a flash on my phone. My bank and various other accounts were always urging me to access my money electronically. Cash was still cash, whether I folded it or used PayPal.

        Then there was the obvious question: How do I get some Bitcoin (the original cryptocurrency) and how do I know what it’s worth? There was all this “mining” of currency, basically some computer geeks spending thousands of hours on computers typing in digital codes to create algorithms that other geeks accepted as currency to conduct a transaction. To play a video game maybe or buy some cool electronic stuff.

      If you didn’t have the patience or skill to create your own currency and protect the codes, you could, eventually, “buy” some crypto. From a “bank” or “exchange” with, you know, hard cash. Money.

        Crypto turned into a major commodity, something to invest in, rather than an alternative monetary system.

         Why? Greed apparently. Having “invented” some kind of cool, alternative “money,” the geniuses behind crypto apparently figured that convincing people with a lot of real money that owning a lot of too-complicated and shakily supported “crypto” money was too good an investment to pass up.

      In other words, it was something to have, not to spend. The IRS, of course, had figured that out quickly, taxing crypto as a commodity, not income.

      Anyway, a lot of not-so-rich people have also been victimized by the current crypto meltdown and it all turns around trust, an important thing when you’re talking about money. Can you trust the bank that your money is there and available when you want it? Pretty much, yes. No real problems of late. The government keeps a watch.

       But who was watching crypto? And, more to the point, if it was supposed to be a one-to-one point of sale exchange program, as created, how did all the other people get involved?

      Again, greed.

      Cryptocurrency grew as an investment with no one really watching over it and, dare I say, with most people never really understanding it. It was “money” that was, in a practical sense, not really good for anything but having. Gold at least has some intrinsic recognized value.

      Perhaps not surprisingly, like a magic trick, as mysteriously as it was created, crypto started disappearing, along with the real cash money people had invested in it. But it wasn’t through some modern computer wizardry. Rather, apparently through some good, old-fashioned larceny.

        The folks who created one of the unregulated exchanges to buy and sell crypto apparently just stole their customers’ real cash (reportedly billions) to invest in some other stuff. Apparently they couldn’t use crypto to do it. You know, to get around the banks and all those annoying regulations. They’ve filed for bankruptcy. So the real money is gone, the astronomical price of cryptocurrency has fallen and no one apparently knows whom to trust in a field that relies entirely on trust.

       What’s the message here? I don’t know. Maybe to make sure there’s a need for something before inventing it. Maybe to make sure what you invent isn’t too complicated for most people to use. Maybe to make sure you can trust someone to whom you are giving lots of your money to invest and you understand what you’re investing in. Maybe, that greed finds its way into pretty much any enterprise that involves money, real or imaginary. Or just maybe that was the idea all along.

     Whatever, I still don’t get it.

rjgaydos@gmail.com

 Bob Gaydos is writer-in-residence at zestoforange.com.