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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 lik
by 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 agoYou'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 agoI 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 agoA "productive asset" is a financial world term that means an asset that generates financial returns.