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Zoom out. Look at the performance on a larger scale. Are you making the same claims about stock options? They can plunge much more than 30% in a day, but is the

by wppick 5y ago

Zoom out. Look at the performance on a larger scale. Are you making the same claims about stock options? They can plunge much more than 30% in a day, but is there no value in them? Bitcoin and cryptocurrencies are still in their infancy. Compare to other assets in their infancy. This might not be a great comparison but think about real estate. In it's infancy raiders or militaries could wipe out the value of your real estate overnight. Now it's relatively very stable. Why? Because we made it that way over time. Just because an asset is currently volatile does not mean it has no value.

codyswann 5y ago
It sounds like you’re arguing crypto is a commodity and not a currency. I think OP is saying “why would you want a currency that could lose 30% of its value in a day” Which I agree with wholeheartedly.
- drcongo 5y ago
  Fiat currencies can and do do that also.
- ericmay 5y ago
  I think the idea is that eventually this won't happen, and there are currencies issued by governments where this happens too, and certainly you wouldn't want that either. Cryptocurrency will simply have to compete with currency issued by sovereign governments, similar to how government-issued currencies compete with each other now. I think an issue for many people is that crypto is looked at categorically as a currency, but it could be much more. It could be a crappy currency, but a good store of value (a better version of gold in most respects, though gold retains an intrinsic value), it could also be a great currency - transiting government borders with impunity and anonymity, which may be very valuable to some. Historically, we've used gold, up until the last 150 years or so (don't quote me on exact timeline here) and even then the U.S. finally went off the gold standard in the 1970s. For most people, cash was still thought of as a store of value - they'd throw it in the bank or under a mattress. Or they thought gold was, but since it's heavy they just trade cash instead that's backed by gold. It'll take a while for the global paradigm shift to occur that pits currencies (sovereign issued and otherwise) against each other as a separate theory to assets in general. Cryptocurrency (which is now a bad name IMO) straddles the borders here, so it tends to be confusing. Personally I view cash as good for liquidity, but that's mostly it. I want the cash I receive to be turned into productive assets, so I hold a much smaller amount compared to assets.
endisneigh 5y ago
I'm talking about bitcoin, not stock options. Why even bring it up? I'm talking about bitcoin specifically, not cryptocurrencies in general. you've said a bunch of things but haven't explained the value.

by wppick 5y ago

codyswann 5y ago

It sounds like you’re arguing crypto is a commodity and not a currency. I think OP is saying “why would you want a currency that could lose 30% of its value in a day” Which I agree with wholeheartedly.

drcongo 5y ago
Fiat currencies can and do do that also.
ericmay 5y ago
I think the idea is that eventually this won't happen, and there are currencies issued by governments where this happens too, and certainly you wouldn't want that either. Cryptocurrency will simply have to compete with currency issued by sovereign governments, similar to how government-issued currencies compete with each other now. I think an issue for many people is that crypto is looked at categorically as a currency, but it could be much more. It could be a crappy currency, but a good store of value (a better version of gold in most respects, though gold retains an intrinsic value), it could also be a great currency - transiting government borders with impunity and anonymity, which may be very valuable to some. Historically, we've used gold, up until the last 150 years or so (don't quote me on exact timeline here) and even then the U.S. finally went off the gold standard in the 1970s. For most people, cash was still thought of as a store of value - they'd throw it in the bank or under a mattress. Or they thought gold was, but since it's heavy they just trade cash instead that's backed by gold. It'll take a while for the global paradigm shift to occur that pits currencies (sovereign issued and otherwise) against each other as a separate theory to assets in general. Cryptocurrency (which is now a bad name IMO) straddles the borders here, so it tends to be confusing. Personally I view cash as good for liquidity, but that's mostly it. I want the cash I receive to be turned into productive assets, so I hold a much smaller amount compared to assets.

endisneigh 5y ago

I'm talking about bitcoin, not stock options. Why even bring it up? I'm talking about bitcoin specifically, not cryptocurrencies in general. you've said a bunch of things but haven't explained the value.