4 ms·

>An extremely small fraction of the inflated value of these coins is actually part of - interacting with - the global economy. Most of it is not and will never

>An extremely small fraction of the inflated value of these coins is actually part of - interacting with - the global economy. Most of it is not and will never be liquid. I am not sure how you arrived at this conclusion? As more money will move into these currencies, won't it create an impact when eventual crash arrives. > The dotcom bubble implosion wiped out trillions in moderately liquid value (the US stock market as one example being radically more liquid than the coin market overall), a sum that makes the crypo-coin bubble look hilariously trivial (even if you inflate it up to $500 billion), the global economy kept trucking regardless; US GDP has expanded by ~80% since the year 2000. Don't you think mania has just started? It took a few years for dotcom bubble to reach its bursting stage.

woobar 9y ago
Serious question: how much money is moving into these currencies already? Bitcoin market cap was $9.4B a year ago, now it is at $58.3B. Average daily trade volume is ~$1B over the last few months. I guess trade volume just reported in USD, but includes all bitcoin transactions. Is there a way to estimate how much money from 'global economy' actually moved into bitcoin and other currencies? Edit: typo
tome 9y ago
Money doesn't "move into these currencies". Someone has USD, someone has BTC. They swap. That's it.
- tome 9y ago
  Or maybe you mean that too much productive capital is being wasted mining these coins? If so, maybe you're right. I'm not sure that has much to do with a crash that would affect the global economy though.
- pessimizer 9y ago
  You're not saying anything that couldn't be said about houses in the US Midwest.
  - tome 9y ago
    > You're not saying anything that couldn't be said about houses in the US Midwest. So? The reason it was problematic for people to pour money into housing was that loans (often loans of around 100%) were secured on these assets. No one is currently securing loans on Bitcoin holdings. If they start to, that will be a problem, but I don't see banks ever securing loans on something so volatile.

woobar 9y ago

Serious question: how much money is moving into these currencies already? Bitcoin market cap was $9.4B a year ago, now it is at $58.3B. Average daily trade volume is ~$1B over the last few months. I guess trade volume just reported in USD, but includes all bitcoin transactions. Is there a way to estimate how much money from 'global economy' actually moved into bitcoin and other currencies? Edit: typo

tome 9y ago

Money doesn't "move into these currencies". Someone has USD, someone has BTC. They swap. That's it.

tome 9y ago
Or maybe you mean that too much productive capital is being wasted mining these coins? If so, maybe you're right. I'm not sure that has much to do with a crash that would affect the global economy though.
pessimizer 9y ago
You're not saying anything that couldn't be said about houses in the US Midwest.
- tome 9y ago
  > You're not saying anything that couldn't be said about houses in the US Midwest. So? The reason it was problematic for people to pour money into housing was that loans (often loans of around 100%) were secured on these assets. No one is currently securing loans on Bitcoin holdings. If they start to, that will be a problem, but I don't see banks ever securing loans on something so volatile.