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It’s only been around for 10-ish years. As someone that is interested in crypto, and actively participates in not only buying, but using it, I think we’re a far

It’s only been around for 10-ish years. As someone that is interested in crypto, and actively participates in not only buying, but using it, I think we’re a far ways off from the bubble bursting completely. Market cycles will happen, projects will die, but I think crypto is here to stay. The bigger question is how far does it spread. It works incredibly well at putting money into the hands of people that have never had it before. The number of high school and college drop outs that I know, who now have more money than most people on earth is staggering.

arcticbull 5y ago
Into the hands of a couple of people. It's an unproductive asset meaning all it can possibly do is redistribute the money that new entrants provide and split it between existing holders and miners. It is fundamentally negative sum, and the narrative of prosperity is driven by existing holders to attempt to claim a larger stake of fiat.
- kreetx 5y ago
  It is productive in the following ways: - you don't need anyone's premission to use it (yes, there are downsides) - you cand lend it out or take a loan much like a bank, but without borders - you can program it and also not fear your program being meddled with. Most banks don't even have an API to use it for a private person. - it can be deterministically scarce, so you wont be losing it if you hold it (or you can, if others lose faith. With national currencies they can simply take your money without you having a say by printing more)
  - deleted 5y ago
    [deleted]
  - arcticbull 5y ago
    You've conflated the role of assets and currencies in a financial system. Even separating that out, that's not a productive asset. The productive asset would be an interest in the lending platform. Concretely it would be like treating gold as a productive asset because InteractiveBrokers lets you take out a margin loan collateralized by your gold. Gold remains unproductive in this scenario, IBKR shares would productive. Value from lending would accrue to IBKR shares.
    - kreetx 5y ago
      I guess I was listing the value of what crypto has. What does "productive" mean? If something has somekind of value/property that is useful somehow, then isn't this "productive" in the sense that it produces that value?
      - JohnFen 5y ago
        A "productive asset" is a financial world term that means an asset that generates financial returns.
Ekaros 5y ago
10 years is also a good point. As most of that in general have been bull market in economy. So we really haven't seen how will crypto do in proper bear market...

arcticbull 5y ago

Into the hands of a couple of people. It's an unproductive asset meaning all it can possibly do is redistribute the money that new entrants provide and split it between existing holders and miners. It is fundamentally negative sum, and the narrative of prosperity is driven by existing holders to attempt to claim a larger stake of fiat.

kreetx 5y ago
It is productive in the following ways: - you don't need anyone's premission to use it (yes, there are downsides) - you cand lend it out or take a loan much like a bank, but without borders - you can program it and also not fear your program being meddled with. Most banks don't even have an API to use it for a private person. - it can be deterministically scarce, so you wont be losing it if you hold it (or you can, if others lose faith. With national currencies they can simply take your money without you having a say by printing more)
- deleted 5y ago
  [deleted]
- arcticbull 5y ago
  You've conflated the role of assets and currencies in a financial system. Even separating that out, that's not a productive asset. The productive asset would be an interest in the lending platform. Concretely it would be like treating gold as a productive asset because InteractiveBrokers lets you take out a margin loan collateralized by your gold. Gold remains unproductive in this scenario, IBKR shares would productive. Value from lending would accrue to IBKR shares.
  - kreetx 5y ago
    I guess I was listing the value of what crypto has. What does "productive" mean? If something has somekind of value/property that is useful somehow, then isn't this "productive" in the sense that it produces that value?
    - JohnFen 5y ago
      A "productive asset" is a financial world term that means an asset that generates financial returns.

Ekaros 5y ago

10 years is also a good point. As most of that in general have been bull market in economy. So we really haven't seen how will crypto do in proper bear market...