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Every time a Musk tweet swings the value of BTC by 20% --- in either direction --- Bitcoin loses credibility as a store of value. "Price greater than zero" is n

by roca 5y ago

Every time a Musk tweet swings the value of BTC by 20% --- in either direction --- Bitcoin loses credibility as a store of value. "Price greater than zero" is not enough to make something a good store of value. BTC as a means of payment is a joke. Most Bitcoin fans I engage with have actually given up on that. In fact, the scaling limitations of Bitcoin transactions are now touted as a good thing because that bounds the eventual energy usage of the network. The Bitcoin cult is strong enough that I have no doubt Bitcoin is here to stay. It's sad, but it doesn't bother me. On the other hand it's obvious why Bitcoin HODLers have a deep financial interest in crypto being "here to stay".

imtringued 5y ago
The store of value concept makes no sense because such a thing cannot exist. When you buy Bitcoin you hope the seller does something that maintains the existence of an economy that exchanges their currency for Bitcoin. You can't just pile up gold and then expect to get something for it if everyone else is dead. You need a group of people (aka economy) willing to work for the gold.
- nly 5y ago
  Gold is a store of value insofar as 'value' is something that can be stored. All people mean by this is the demand and supply for Gold is very predictable, relatively speaking.
  - jodrellblank 5y ago
    One difference between Gold and Bitcoin which I don't see discussed often is that it's pretty clear the people who got in first get the most gains. With gold, you can't do anything about that until you invent time travel. With BitCoin, as soon as you realise that, you have an incentive to spin up your own cryptocoin with the only difference being that you get in first. Other people have an incentive to get into your cryptocoin speculating that they can be in first, and then because they are in they have an incentive to hype it to others. https://coinmarketcap.com/all/views/all/ https://coinmarketcap.com/all/views/all/ I clicked "load more" until I saw 1400 cryptocurrencies, if Bitcoin is 12 years old, that's averaging a new cryptocurrency every 3 days since Bitcoin's creation. There's probably a lot more than that.

by roca 5y ago

imtringued 5y ago

The store of value concept makes no sense because such a thing cannot exist. When you buy Bitcoin you hope the seller does something that maintains the existence of an economy that exchanges their currency for Bitcoin. You can't just pile up gold and then expect to get something for it if everyone else is dead. You need a group of people (aka economy) willing to work for the gold.

nly 5y ago
Gold is a store of value insofar as 'value' is something that can be stored. All people mean by this is the demand and supply for Gold is very predictable, relatively speaking.
- jodrellblank 5y ago
  One difference between Gold and Bitcoin which I don't see discussed often is that it's pretty clear the people who got in first get the most gains. With gold, you can't do anything about that until you invent time travel. With BitCoin, as soon as you realise that, you have an incentive to spin up your own cryptocoin with the only difference being that you get in first. Other people have an incentive to get into your cryptocoin speculating that they can be in first, and then because they are in they have an incentive to hype it to others. https://coinmarketcap.com/all/views/all/ https://coinmarketcap.com/all/views/all/ I clicked "load more" until I saw 1400 cryptocurrencies, if Bitcoin is 12 years old, that's averaging a new cryptocurrency every 3 days since Bitcoin's creation. There's probably a lot more than that.