3 ms·

The view that money is just a store of value is only held by BTC maximalists, because BTC is too unreliable expensive to be a good medium of exchange. When they

by lawn 7y ago

The view that money is just a store of value is only held by BTC maximalists, because BTC is too unreliable expensive to be a good medium of exchange. When they say store of value what they really mean is investment vehicle.

hndamien 7y ago
Expensive?
- lawn 7y ago
  I meant that transaction fees are unreliable, sometimes they can be extremely expensive (in 2017 they reached as high as $50 per transaction!). Currently the next block fee is $1.36[0], which is very expensive compared to alternative payment networks. [0]: https://bitcoinfees.cash/ https://bitcoinfees.cash/
  - hndamien 7y ago
    Fair.
lambertsimnel 7y ago
Can anything store value without having another use, even if its supply is fixed? Would the demand for precious metals and precious metal money as a store of value disappear without the industrial, cosmetic and artistic demand for precious metals?
- corodra 7y ago
  That's kind of what value means, being useful. Random hash algorithms are not inherently useful, thus, have no value. At least I could wipe my ass with a dollar bill or use the bill as kindling for a fire. I'm all for a currency system based on beans or corn. Especially corn. Corn has loads of value in multiple ways. Food. Fuel. Fertilizer. But oh, it decays, thus, you better use it before it goes bad and is useless. Not in the case for gold. The reason gold was used so much has a long term storage was due to it's stability. Gold doesn't decay in generational lifetimes. Doesn't really rust and reacts with very few chemicals. Silver was actually used as an everyday currency more than gold. But gold was the main body. The use of precious metals as a form of currency was not an accident. Yea, it has value largely based on "faith". Any currency will. No cryptocoin is immune from that. You have to have faith that it has value. I find it weird that people just say "crypto has inherent value unlike fiat currency". Yea, what value? If you want to argue "Well, gold has no real value, so bitcoin is no different from that. They both lack real value. Why can't bitcoin be a currency?" Good question! That's a good point! We're getting somewhere! It peeves me when people take a shit on thousands of years worth of social trial and error and dismiss it all because they watch a youtube cartoon about "the truth behind money".

by lawn 7y ago

hndamien 7y ago

Expensive?

lawn 7y ago
I meant that transaction fees are unreliable, sometimes they can be extremely expensive (in 2017 they reached as high as $50 per transaction!). Currently the next block fee is $1.36[0], which is very expensive compared to alternative payment networks. [0]: https://bitcoinfees.cash/ https://bitcoinfees.cash/
- hndamien 7y ago
  Fair.

lambertsimnel 7y ago

Can anything store value without having another use, even if its supply is fixed? Would the demand for precious metals and precious metal money as a store of value disappear without the industrial, cosmetic and artistic demand for precious metals?

corodra 7y ago
That's kind of what value means, being useful. Random hash algorithms are not inherently useful, thus, have no value. At least I could wipe my ass with a dollar bill or use the bill as kindling for a fire. I'm all for a currency system based on beans or corn. Especially corn. Corn has loads of value in multiple ways. Food. Fuel. Fertilizer. But oh, it decays, thus, you better use it before it goes bad and is useless. Not in the case for gold. The reason gold was used so much has a long term storage was due to it's stability. Gold doesn't decay in generational lifetimes. Doesn't really rust and reacts with very few chemicals. Silver was actually used as an everyday currency more than gold. But gold was the main body. The use of precious metals as a form of currency was not an accident. Yea, it has value largely based on "faith". Any currency will. No cryptocoin is immune from that. You have to have faith that it has value. I find it weird that people just say "crypto has inherent value unlike fiat currency". Yea, what value? If you want to argue "Well, gold has no real value, so bitcoin is no different from that. They both lack real value. Why can't bitcoin be a currency?" Good question! That's a good point! We're getting somewhere! It peeves me when people take a shit on thousands of years worth of social trial and error and dismiss it all because they watch a youtube cartoon about "the truth behind money".