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I can't put my finger on it but I doubt the valuation of bitcoin/other crypto assets when converted to USD. Look at NFTs: there's no way those prices would hold
by creato 6y ago
I can't put my finger on it but I doubt the valuation of bitcoin/other crypto assets when converted to USD. Look at NFTs: there's no way those prices would hold if someone were actually paying USD. Those prices are only possible because people are exchanging one funny-money cryptocurrency for another.
I think the basic issue is there is huge amounts of cryptocurrency that can't be converted to USD for one reason or another (proceeds of ransomware, inability to pass KYC checks, etc.), and that is causing some crypto assets to be worth far less USD than others, and inflating the price of assets when purchased with those coins. But that isn't stopping people from pricing them just the same.
- solosoyokaze 6y ago> I can't put my finger on it but I doubt the valuation of bitcoin/other crypto assets when converted to USD. That valuation is based on what you can, right now, exchange crypto for USD on the exchanges.
- NickNameNick 6y agoSure, but only so long as most holders of bitcoin don't actually do it.
- solosoyokaze 6y agoThe amounts tied to NFTs should be easily exchangeable without having an impact on the price.
- Havoc 6y ago>Look at NFTs: there's no way those prices would hold if someone were actually paying USD. Those prices are only possible because people are exchanging one funny-money cryptocurrency for another. Not really - because you could exchange you crypto for USD easily & reliably enough. The second that's true it stops being "funny-money" as you put it. Contrast that with monopoly money where nobody will give you USD for it. NFTs - either people are doing it for the giggles or they're betting on greater fool theory
- floren 6y ago> NFTs - either people are doing it for the giggles or they're betting on greater fool theory Give a little more credit--they're also great for money laundering.