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But why would they put money into crypto? There is some reason to use crypto as a currency (anonymous transactions), but there is no particular reason to use it
by ivalm 8y ago
But why would they put money into crypto? There is some reason to use crypto as a currency (anonymous transactions), but there is no particular reason to use it as a store of value (hard to comply with anti-money-laundering regulation, hard to protect from fraud, hard to pass through audit, etc)
- wmf 8y agoBecause there's a chance it will go up 10x and no other asset will.
- UncleMeat 8y agoThere's a chance that lottery tickets go up 1,000,000x. There's a chance that vintage NES controllers go up 100x. There is a chance that baseball cards go up 100x. Literally all things have a an arbitrary growth ceiling.
- ivalm 8y agoSorry if I didnt understand sarcasm, but in case you are serious, "speculation" is not the same as "store of value." Whether crypto is a good speculation target is a difficult question, but most do not sell crypto as a "speculation target" as its primary attribute. It is also unlikely that something whose primary attribute is speculation can have a positive roi long term.
- wmf 8y agoI'm not being sarcastic (this time). When crypto people say "store of value" I'm pretty sure they mean (long-term) speculation. Also consider that people may be investing for a different reason than what they say.
- csomar 8y agoThe same reason why you'd put money on Gold or the Stock market. Exposure. People are not putting money on crypto because they are not exposed to it. Ever wonder why the stock market bubbles out of fundamentals?