3 ms·
It'll never happen. Any sort of currency needs to be backed either by an asset or a government, otherwise it's essentially worthless. Cryptocurrencies have va
by Mikeb85 9y ago
It'll never happen. Any sort of currency needs to be backed either by an asset or a government, otherwise it's essentially worthless.
Cryptocurrencies have value because they're basically one big ponzi scheme where people invest because they are confident someone after them will buy it, but the odds of them having staying power are slim because, at the end of the day, there is nothing with actual worth backing them.
- rak00n 9y ago> where people invest because they are confident someone after them will buy it That's stock market.
- Mikeb85 9y agoExcept in the stock market, you get equity in a real business with real assets, and other perks that go along with ownership.
- lsc 9y agoYes, but one difference is that if the price of a company goes low enough, someone will buy it and sell off it's assets. Depending on what sort of assets the company has, this is even something that banks will finance.
- eadz 9y agoWorth can be assigned by people. There is nothing "backing" gold, we have simply decided that it is worth something.
- Mikeb85 9y agoGold is used in jewelry and electronics. It'll always have some worth, though personally I do think it's overpriced.
- ErikVandeWater 9y agoI strongly disagree - If I know I can trade an item to someone else for something I want, I will accept it as payment. It doesn't matter what any government thinks about it, nor whether it can be used for something other than trading.
- MarkMc 9y agoSomeone once said that the price of gold is a 6,000-year-old bubble. There is no doubt that the price of gold far exceeds it's utilitarian value. The same is true of cryptocurrencies.
- SippinLean 9y agoNot every scheme is a Ponzi scheme, you may want to read up on what that means.