4 ms·
And, it would produce literally no value (unlike VC investment in companies). There are so many ways to look at crypto that makes it seem like it's incredibly u
by SwellJoe 9y ago
And, it would produce literally no value (unlike VC investment in companies). There are so many ways to look at crypto that makes it seem like it's incredibly undervalued and this kind of thought experiment has been done many times in different ways (with the example for the thought experiment changing over the years as the crypto market cap has grown to surpass the example...e.g. gold, Western Union money transfers, etc.). But, unless and until crypto provides value to justify it, it's all just speculation.
Right now, BTC is a basically useless asset. You can't buy things with it (without paying more than using dollars). You can't cost-effectively transfer money with it (fees are too high and transaction times are too long). What can you do with it? Sit on it, and hope it goes up. (Which is what I'm doing with the small amount I still hold.)
I'm vaguely optimistic about cryptocurrency, in general, but the current state of things makes me think there's too much money chasing too little value...all that money could be going into companies that make or do useful things. But, instead, it's just burning electricity.
Not directly a Bitcoin issue, but 99% of ICOs are blatant and obvious scams, most small altcoins are blatant and obvious scams. Even some major altcoins are blatant and obvious scams. I feel like there's a more than even chance of this whole thing ending in tears in the next couple of years, even if cryptocurrency eventually (like five, ten, twenty, years down the road) wins.
I don't mean to say you're wrong. More money will likely pour into cryptocurrency as people with money either fall for the ponzi schemes that surround it, or as it actually begins to produce some kind of value and becomes a useful tool for normal people to do normal things with it. We can't begin to compare crypto to the internet (as I've also seen people do...suggesting crypto adoption is now where the internet was 5, 10, years in, or whatever, just because the same number of people are hoarding coins as were on the internet at some early point) until you can actually buy pet food using it (or do something else of value). It isn't a revolution if it just sits in a vault like gold.
- rubber_duck 9y ago>Right now, BTC is a basically useless asset. You can't buy things with it (without paying more than using dollars). You can't cost-effectively transfer money with it (fees are too high and transaction times are too long). What can you do with it? Sit on it, and hope it goes up. (Which is what I'm doing with the small amount I still hold.) Illegal activity, dodging capital controls, etc.