4 ms·

That use case is currently comparatively vanishingly small and no where near large enough to explain Bitcoin and other cryptocurrencies current values. Speculat

by zaphar 7y ago

That use case is currently comparatively vanishingly small and no where near large enough to explain Bitcoin and other cryptocurrencies current values. Speculation isn't just the dominant use case. It's the overwhelmingly dominant use case.

ur-whale 7y ago
IMO, speculation isn't the dominant use case for Bitcoin is store of value (not claiming it's small). With a major, major recession looming, with negative interest rates, and at a time where owning govt debt instrument actually costs you, where will you park your wealth? Well, parking your wealth in Bitcoin starts to sound like a really good idea: - in spite of the crazy volatility: if you average out Bitcoin value over - say - a 2 years window, it's a pretty safe bet. - it also happens to be pretty hard for governments to get their grubby little paws on your Bitcoin stash (short of torturing the password to your private keys out of you). - it can be moved and spent quasi-instantly anywhere in the world, so no border headaches. - no other financial instrument has the dual property of being limited in supply *and* infinitely divisible (or almost). Most people focus all their mental energy on the first and completely avoid thinking about the second.
mettamage 7y ago
Sure, but I do think it's worth pointing out as I feel it is more of a tangible value and it's easier to see why this value will stay. With speculation, it's hard to see if people will speculate later on (probably, but I wouldn't be able to tell why). I will be able to tell why people who need privacy will be resorting to a crypto in 2 years from now. Another use case: there have been a couple of cases where I'd use a fast cryptocurrency over banking. This case is: fast international transfer. Have you seen the speed that Ripple has, for example? (Yes, yes, I know Ripple not decentralized, I don't care, I care about speed) What takes me days to with a bank, I can do in seconds with Ripple. Though, this only works if: converting back to fiat is quicker on the other side than the bank transfer or the whole transaction is possible with crypto.

by zaphar 7y ago

ur-whale 7y ago

IMO, speculation isn't the dominant use case for Bitcoin is store of value (not claiming it's small). With a major, major recession looming, with negative interest rates, and at a time where owning govt debt instrument actually costs you, where will you park your wealth? Well, parking your wealth in Bitcoin starts to sound like a really good idea: - in spite of the crazy volatility: if you average out Bitcoin value over - say - a 2 years window, it's a pretty safe bet. - it also happens to be pretty hard for governments to get their grubby little paws on your Bitcoin stash (short of torturing the password to your private keys out of you). - it can be moved and spent quasi-instantly anywhere in the world, so no border headaches. - no other financial instrument has the dual property of being limited in supply *and* infinitely divisible (or almost). Most people focus all their mental energy on the first and completely avoid thinking about the second.

mettamage 7y ago

Sure, but I do think it's worth pointing out as I feel it is more of a tangible value and it's easier to see why this value will stay. With speculation, it's hard to see if people will speculate later on (probably, but I wouldn't be able to tell why). I will be able to tell why people who need privacy will be resorting to a crypto in 2 years from now. Another use case: there have been a couple of cases where I'd use a fast cryptocurrency over banking. This case is: fast international transfer. Have you seen the speed that Ripple has, for example? (Yes, yes, I know Ripple not decentralized, I don't care, I care about speed) What takes me days to with a bank, I can do in seconds with Ripple. Though, this only works if: converting back to fiat is quicker on the other side than the bank transfer or the whole transaction is possible with crypto.