3 ms·
Partly. Currency is what we oil the gears of the economy with, it's a tool, not an investment. First - the comparison was made to stocks - which is not valid.
by alexasmyths 9y ago
Partly.
Currency is what we oil the gears of the economy with, it's a tool, not an investment.
First - the comparison was made to stocks - which is not valid.
Second - yes, valuing currency is much more speculative in nature - and it's generally not considered an 'investment' - it's either speculation - or used to hedge things, or as a financial instrument (i.e. you're doing a lot of business in Euros, buy a lot now to smooth earnings).
But even then, it's still possible to make some rationalizations.
GBP will not go 100x this year. Neither will it go to zero. BTC cold go to $100K, it could go to $0.
Finally - within an economy, the value of the currency is usually a moot issue, because only when things go international does it matter.
- SilasX 9y agoYou still haven't given a reason why "there's no rational way to value BTC" that isn't also applicable to USD. If you believe it's possible to rationally value USD, that would be a proof by contradiction that there's a way to rationally value BTC.
- alexasmyths 9y ago1) 'valuing' a currency is different than valuing other investments. 2) BTC is not being used as a currency, it's being used as an 'investment' and a (very bad) store of value. 'Stores of value' we should definitely be able to value - but currencies are hard to do that with. 3) As far as valuing USD vs BTC - it's difficult to value, but you can do it. Oil futures, Fed Movements, capital controls and flows - it's possible to predict within a range where currencies will go. With BTC, there's nothing to value it with.