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It's interesting to think that the value of cryptocurrency as both the value derived from the platform's utility and the value ascribed to the coins based on co
by subroutine 9y ago
It's interesting to think that the value of cryptocurrency as both the value derived from the platform's utility and the value ascribed to the coins based on consumer demand.
Because these are both embedded into the coin valuation it feels more like stock to me than currency. Specifically it might be like owning stock in eTrade, which has utility value as a platform for trading stock, and an arbitrary value based on consumer demand.
- aboodman 9y agoAll currencies have that trait. USD has a value that is famously propped up because of its ubiquitous utility. Everyone wants/needs dollars (to trade w/ US, to pay US taxes, to use as a reserve currency, etc). This demand increases the cost of dollars relative to everything else. The only reason it is harder to notice with crypto is because the size of the market you can use crypto in is so ridiculously small (relative to a national currency) that investment value and speculative effects dominate.