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There seems to be a ton of excitement about Bitcoin now, not because of what it can do, but almost entirely because of speculation. Almost none of the general p

There seems to be a ton of excitement about Bitcoin now, not because of what it can do, but almost entirely because of speculation. Almost none of the general public interest in Bitcoin stems from an interest in what Bitcoin is; the vast majority of people simply see it as a get rich quick asset. And the reason why people are only interested in it for speculative reasons is because it doesn't seem to have any particular benefit for most people. And if this is a speculative bubble the way it looks like it is, it will end like other speculative bubbles. A few people will get absurdly rich, not because they added any value to the system, but because they were able to time the market. Their money will come from the many others who will lose a lot because they tried to do the same thing but were too late. Beyond that, there seems to be a small group of people who are interested in it because they see it as an alternative to fiat currency. But strong opposition to fiat currency seems to be one of those odd economic beliefs that some people get, similar to the people who think that our society would be great if we just got rid of money and had a barter system. Outside of fringe beliefs, fiat currency is generally seen as a useful tool.

drcross 9y ago
I'm tired of this perspective. Just because you "feel" people are in bitcoin for "the wrong reason" doesn't make it bad. Similarly if people start buying electric vehicles because they are faster than gas cars it doesn't make them "worse" than people who buy them for environment change. A lot of millenials have learned a lot about the existing financial system due to Bitcoin, even if it was initially to make a quick buck, and I suspect there's no way back to fiat for a lot of them.
- Anderkent 9y ago
  > A lot of millenials have learned a lot about the existing financial system due to Bitcoin, even if it was initially to make a quick buck, and I suspect there's no way back to fiat for a lot of them. This is exactly the kind of one-sided perspective that makes me very sceptical. No, they didn't 'leave fiat' in any way, and they never will. At best they can hedge against it a little. But while that might be personally profitable, it is not clear at all whether it is a net benefit; the main problem of western economies nowadays seems to be too tight monetary policy, and crypto is tighter than fiat.
- nickrivadeneira 9y ago
  Your example of electric cars doesn't really translate. In your example, people are buying electric cars because there is an intrinsic property to them that make them superior to alternatives (e.g. faster). With bitcoin, people are currently buying not because they believe something about bitcoin is better. Instead, they're following greater-fool theory investing. Whether millenials have learned about existing financial systems or not is immaterial. It's unlikely they'd be holding a position in bitcoin if it weren't for the massive gains that have been seen in the past year. It's purely a get rich quick play for the majority of buyers today.
- chao- 9y ago
  When did they leave fiat currency at all if they are using Bitcoin? Is not cryptocurrency the ultimate fiat currency? It only has worth because we all "agree" it does via supply and demand for the currency itself, rather than any backing material value. Aside from a bunch of power plants in China, I suppose? But people don't hold Bitcoin at $20,000 because they strongly believe in the material worth of the rural Chinese electric grid. (post edited to say "fiat currency" rather than the noun "fiat" which means decree or command)
  - ryanmonroe 9y ago
    fiat: An authoritative command or order to do something; an effectual decree.
    - chao- 9y ago
      Apologies, I intended that as a shorthand for "fiat currency" the way the parent post had ("there's no way back to fiat for a lot of them"). I did not mean the bare word "fiat", and will update my post accordingly.

drcross 9y ago

I'm tired of this perspective. Just because you "feel" people are in bitcoin for "the wrong reason" doesn't make it bad. Similarly if people start buying electric vehicles because they are faster than gas cars it doesn't make them "worse" than people who buy them for environment change. A lot of millenials have learned a lot about the existing financial system due to Bitcoin, even if it was initially to make a quick buck, and I suspect there's no way back to fiat for a lot of them.

Anderkent 9y ago
> A lot of millenials have learned a lot about the existing financial system due to Bitcoin, even if it was initially to make a quick buck, and I suspect there's no way back to fiat for a lot of them. This is exactly the kind of one-sided perspective that makes me very sceptical. No, they didn't 'leave fiat' in any way, and they never will. At best they can hedge against it a little. But while that might be personally profitable, it is not clear at all whether it is a net benefit; the main problem of western economies nowadays seems to be too tight monetary policy, and crypto is tighter than fiat.
nickrivadeneira 9y ago
Your example of electric cars doesn't really translate. In your example, people are buying electric cars because there is an intrinsic property to them that make them superior to alternatives (e.g. faster). With bitcoin, people are currently buying not because they believe something about bitcoin is better. Instead, they're following greater-fool theory investing. Whether millenials have learned about existing financial systems or not is immaterial. It's unlikely they'd be holding a position in bitcoin if it weren't for the massive gains that have been seen in the past year. It's purely a get rich quick play for the majority of buyers today.
chao- 9y ago
When did they leave fiat currency at all if they are using Bitcoin? Is not cryptocurrency the ultimate fiat currency? It only has worth because we all "agree" it does via supply and demand for the currency itself, rather than any backing material value. Aside from a bunch of power plants in China, I suppose? But people don't hold Bitcoin at $20,000 because they strongly believe in the material worth of the rural Chinese electric grid. (post edited to say "fiat currency" rather than the noun "fiat" which means decree or command)
- ryanmonroe 9y ago
  fiat: An authoritative command or order to do something; an effectual decree.
  - chao- 9y ago
    Apologies, I intended that as a shorthand for "fiat currency" the way the parent post had ("there's no way back to fiat for a lot of them"). I did not mean the bare word "fiat", and will update my post accordingly.