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Pardon my babbling - maybe I'm naive but thats why I'm way more on board with ETH over BTC because it can at least facilitate new sorts of.. financial instrumen
by thatswrong0 6y ago
Pardon my babbling - maybe I'm naive but thats why I'm way more on board with ETH over BTC because it can at least facilitate new sorts of.. financial instruments and products (call it what you will, but the fact that NFTs are currently popping off for some artists is pretty cool to see, even if it feels contrived), whereas the value of BTC is basically resting entirely on its first mover advantage. And this is to say nothing of the energy requirements and ecological costs of proof of work..
It's hard for me to just accept the fact that hype drives demand, and demand sets the price. The hype can be a meme or be seemingly ignorant of better alternatives, but it doesn't matter the speculative feedback loop can apparently irrationally sustain itself for a long time.
I really wonder what the next major recession is going to look like.
- acdha 6y agoBasically, I’d look at the hard demand as people who _need_ to have a particular asset: if you have a contract saying you’re paying me in Bitcoin that means that you’re going to pay the fees needed to keep the network operating. Very, very few people have those and so in most cases the decision is either based in the belief that you’ll be able to sell for a greater value later or an ideological belief, neither of which is especially stable.