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Bitcoin is no different than any other non-commodity currency. It's only valuable because people believe they can, or will eventually, be able to use it to acqu

Bitcoin is no different than any other non-commodity currency. It's only valuable because people believe they can, or will eventually, be able to use it to acquire something with intrinsic value. Without that confidence, it's worthless. Personally, I have lots of confidence that the USD in my bank account will one day, at a time of my choosing, get me intrinsically valuable things like cars, a home, food, cloths, etc. With bitcoin, I have very little confidence that will occur. So it's not very valuable to me. Nor do I have confidence that there will always be a "greater fool" handy to purchase any bitcoin I might buy for more than I paid for it. I think bitcoin will inevitably collapse. TFA talks about "citizens protecting themselves from irresponsible or malicious governments and companies", but that's not a problem I'm aware that I have. If it were, then I might be interested in owning bitcoin.

nefitty 9y ago
Do you have the same mindset in regards to physical gold? Gold has very little, if any, intrinsic or practical value, yet generations of humans have been motivated to acquire more of it. With digital currencies like Bitcoin, I think we're seeing the birth of a new type of scarce resource that will motivate generations of people to come.
- rhapsodic 9y ago
  >Do you have the same mindset in regards to physical gold? Gold has very little, if any, intrinsic or practical value, yet generations of humans have been motivated to acquire more of it. That statement is self-contradicting. If people covet gold for reasons other than what they might exchange it for, that means it has intrinsic value. And in addition to the satisfaction some people get from decorating their bodies with gold, it has many other practical uses. It's used in all types of electronic devices, including the computer you're reading this on. And as a medium of exchange, gold does not rely on a global computer network being available. (But in a post-apocalyptic world, gold probably would not have as much intrinsic value as it does currently. Whiskey, guns and cartridges would probably be a better bet.) The only thing scarce about crypto-currency is the energy it consumes, and the world's tolerance for its environmental impact. Aside from that, what prevents anyone from creating a new one? It's all about the mindset. As long as enough people believe bitcoin is valuable, it will be valuable. I could be wrong, but I don't think that will continue to be the case long term. I think crypto-currencies will continue to exist and will have some practical uses, but, IMO, their values relative to USD are going to be, shall we say, "adjusted" to a more sane level sometime in the future.

nefitty 9y ago

Do you have the same mindset in regards to physical gold? Gold has very little, if any, intrinsic or practical value, yet generations of humans have been motivated to acquire more of it. With digital currencies like Bitcoin, I think we're seeing the birth of a new type of scarce resource that will motivate generations of people to come.

rhapsodic 9y ago
>Do you have the same mindset in regards to physical gold? Gold has very little, if any, intrinsic or practical value, yet generations of humans have been motivated to acquire more of it. That statement is self-contradicting. If people covet gold for reasons other than what they might exchange it for, that means it has intrinsic value. And in addition to the satisfaction some people get from decorating their bodies with gold, it has many other practical uses. It's used in all types of electronic devices, including the computer you're reading this on. And as a medium of exchange, gold does not rely on a global computer network being available. (But in a post-apocalyptic world, gold probably would not have as much intrinsic value as it does currently. Whiskey, guns and cartridges would probably be a better bet.) The only thing scarce about crypto-currency is the energy it consumes, and the world's tolerance for its environmental impact. Aside from that, what prevents anyone from creating a new one? It's all about the mindset. As long as enough people believe bitcoin is valuable, it will be valuable. I could be wrong, but I don't think that will continue to be the case long term. I think crypto-currencies will continue to exist and will have some practical uses, but, IMO, their values relative to USD are going to be, shall we say, "adjusted" to a more sane level sometime in the future.