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The thing is, I still don’t feel like the vision as stated is proven. I still haven’t heard a single person explain in cogent terms the value it provides and IM
by dkrich 5y ago
The thing is, I still don’t feel like the vision as stated is proven. I still haven’t heard a single person explain in cogent terms the value it provides and IMO if you can’t explain something that is supposedly a revolutionary technology and the utility it provides in simple terms you don’t understand it. It’s also curious to me how the fiat skeptics/crypto bulls always cheer when crypto trades up in fiat terms.
I’m not the type to conflate funding with utility, and while clearly there is massive interest in crypto, it’s still not clear to me that the entire space is more than just a speculative asset class. I don’t know anyone who uses it to purchase goods, in fact it seems that the bull case for it is that it shouldn’t be spent. Now that it’s gone from $20k to $60k in four months everyone suddenly believes in it. The absolute mania that has coincided with the price ascent alone makes me skeptical. It’s easy to cast aside naysayers when you see such a massive IPO amidst a speculative frenzy like we’re seeing in crypto and say “see, you’re wrong” but I think skepticism is healthy in certain cases and people buying coinbase and crypto now thinking they’re early to this party just feels like a suckers rally.
Companies that are IPOing these days are doing so after having been private for a decade. This results in early investors cashing out on the public markets after capturing the opportunity when the risk was still massive.
- ObserverNeutral 5y agoPeople are scared as hell of inflation and that's why the Fed was created. The "stable prices" thing is an elegant way to say "prevent inflation". Now people are really upset that the Fed not only won't allow deflation but it is pretty much encouraging inflation. They see this as a betrayal to the public and the reason why the Fed was created in the first place. There is a misalignment between the Fed inflation preference of 2% and the public inflation preference which is 0% or even -2% Enter crypto: what draws people to crypto is deflation. People love deflation, they gravitate towards crypto because deflation is hard built in protocol and it brings about financial nirvana for the saver: that is being able to increase one's net worth without doing any tangible work, manual or intellectual. That's the value of Crypto, people have lost faith in the Fed. BTC gives people what they want (hard coded deflation) and has an amazing marketing story.
- thehappypm 5y agoUm, public inflation preference is hardly deflationary. Would you like it if your mortgage became harder and harder to pay off every month? If your wages went down over time?
- ObserverNeutral 5y agoI don't think retail makes that connection, also when there is a will there is a political way. Maybe deflationary preference with a moratorium on student debt and mortgages. Point being: people want to sit on their couch and enrich their net worth without doing any work
- deleted 5y ago[deleted]
- seoaeu 5y ago> Point being: people want to sit on their couch and enrich their net worth without doing any work If you have more debt than you do cash in your back account, then inflation can enrich your net worth without you doing any work.
- ObserverNeutral 5y agoIf you are not the US government or a AAA+ company such as Microsoft ...then your creditors will get inflation back from you in the form of interest and then some. Never in a million years the regular borrower would be able to increase their net worth with inflation. Regular borrowers can't borrow anywhere near the consensus projected inflation rate.
- kybernetikos 5y agoRegular borrowers income increase somewhat in line with inflation. Houses bought on interest payments that seemed difficult to manage become easy to manage within a few years. I know a large number of people at the moment who have ended up with an impressive property portfolio without even trying all that hard. They bought early in their career, and the value of the property they bought inflated, their income inflated, and their debt didn't keep pace.
- deleted 5y ago[deleted]