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Yeah lol. If there is no physical entity enforcing the contract, then the contract is worthless. Whereas with Bitcoin, the entire thing is digital. The only th

Yeah lol. If there is no physical entity enforcing the contract, then the contract is worthless. Whereas with Bitcoin, the entire thing is digital. The only thing that is non-digital is the valuing of the bitcoin itself. That takes places in each individuals mind. Thus Bitcoin (store of value) is a solid usecase of this. NFTs are dumb.

nivenkos 6y ago
I'm even skeptical of Bitcoin as a store of value. Sure it's deflationary, but it only has value if people will buy it. The only thing that ensures some value are transactions being made, and right now that is just a low level of illegal black markets in drugs, etc. you can't use it to purchase normal goods or services - I don't feel that justifies the current prices so it seems like a pump and dump.
- afc 6y ago
  In case you find it useful, I'll mention that I use Bitcoin as a store of value: it lets me store a portion of the output of my production (i.e., my salary) that I don't need to consume right away. Occasionally, I convert a portion back to other currencies and consume it. I never have and don't intend to ever trade in black markets. I expect that thousands of other users like me will continue to be willing to buy/sell, needing to "consume" it (convert to other assets) at different times. In a very real sense, I've used Bitcoin to buy real things — and I really don't care at all about the fact that I had to convert to Euros first; it still was just as useful for me to store value I've produced until the time, months later, I'm ready to consume it. There are other technologies to store wealth and we can compare them, Bitcoin is certainly not the only one. But I think failing to acknowledge this would be just as foolish as pretending it is the only means to do this.
  - nivenkos 6y ago
    But why use Bitcoin for that? You could use GME shares and get the volatility without the crazy power usage, or use a stable ETF.
    - 1996 6y ago
      > > In case you find it useful, I'll mention that I use Bitcoin as a store of value: it lets me store a portion of the output of my production (i.e., my salary) that I don't need to consume right away. Occasionally, I convert a portion back to other currencies and consume it > But why use Bitcoin for that? You could use GME shares and get the volatility without the crazy power usage, or use a stable ETF. Because if you plot the BTCEUR, the EUR ETF of your choice, and GME *USDEUR over the last 10 years, and apply a moving average equal to your financial buffer (say 6 month), you will see one is clearly trending up: BTC Someone who put 1% of their income or use DCA to regurlarly buy an equivalent amount of BTC, GME, any ETF will quickly find than the BTC represent 90% of their saving, meaning it grew much faster than anything else. It's not the volatility or the greeks, but the time trend if you can afford to delay your spending! If you spend 2/3 of your saving to acquire something that you realize is worth 9 times less than what the other 1/3 of your savings purchased, you quickly stop and reevaluate your automated purchase decisions!

nivenkos 6y ago

I'm even skeptical of Bitcoin as a store of value. Sure it's deflationary, but it only has value if people will buy it. The only thing that ensures some value are transactions being made, and right now that is just a low level of illegal black markets in drugs, etc. you can't use it to purchase normal goods or services - I don't feel that justifies the current prices so it seems like a pump and dump.

afc 6y ago
In case you find it useful, I'll mention that I use Bitcoin as a store of value: it lets me store a portion of the output of my production (i.e., my salary) that I don't need to consume right away. Occasionally, I convert a portion back to other currencies and consume it. I never have and don't intend to ever trade in black markets. I expect that thousands of other users like me will continue to be willing to buy/sell, needing to "consume" it (convert to other assets) at different times. In a very real sense, I've used Bitcoin to buy real things — and I really don't care at all about the fact that I had to convert to Euros first; it still was just as useful for me to store value I've produced until the time, months later, I'm ready to consume it. There are other technologies to store wealth and we can compare them, Bitcoin is certainly not the only one. But I think failing to acknowledge this would be just as foolish as pretending it is the only means to do this.
- nivenkos 6y ago
  But why use Bitcoin for that? You could use GME shares and get the volatility without the crazy power usage, or use a stable ETF.
  - 1996 6y ago
    > > In case you find it useful, I'll mention that I use Bitcoin as a store of value: it lets me store a portion of the output of my production (i.e., my salary) that I don't need to consume right away. Occasionally, I convert a portion back to other currencies and consume it > But why use Bitcoin for that? You could use GME shares and get the volatility without the crazy power usage, or use a stable ETF. Because if you plot the BTCEUR, the EUR ETF of your choice, and GME *USDEUR over the last 10 years, and apply a moving average equal to your financial buffer (say 6 month), you will see one is clearly trending up: BTC Someone who put 1% of their income or use DCA to regurlarly buy an equivalent amount of BTC, GME, any ETF will quickly find than the BTC represent 90% of their saving, meaning it grew much faster than anything else. It's not the volatility or the greeks, but the time trend if you can afford to delay your spending! If you spend 2/3 of your saving to acquire something that you realize is worth 9 times less than what the other 1/3 of your savings purchased, you quickly stop and reevaluate your automated purchase decisions!