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> You can't have investment and speculation first. Do you know how a power plant is built today? You buy future contracts of gas, you sell future contracts of
by 21 8y ago
> You can't have investment and speculation first.
Do you know how a power plant is built today? You buy future contracts of gas, you sell future contracts of electricity (more expensive) and you use the profit from this transaction to build a power plant which will convert the gas that will be delivered to you in electricity that you must be delivering. I'm not joking.
- vertexFarm 8y agoYeah, but that still involves an existing industry. Just because that specific power plant doesn't exist yet doesn't mean there isn't a market yet. It gets kind of chicken-and-the-egg, but currency didn't come before services. Currency came as a response to services, and investment came as a way to enable people to get large amounts of capital for large projects. Bitcoin isn't looking like that. It can be used for services, but waaaayyy too large of a percentage is being used to entice more investors to come and pump up the value for yet more investors. It's pretty difficult for laypeople to tell the difference between legit investment and what Warren Buffet is referring to, where you just hope the next guy comes along and pays more. Which is why these scams keep coming back. So far, not nearly enough of cryptocurrency's value is being used to create that power plant. Can it become a real economy? Yeah, sure. Tulips could have become a real economy too, technically.