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Bitcoin is a store of value. Why is it a store of value? Because people believe it is, much like gold. You can gesture vaguely at the minor utility that gold ha

Bitcoin is a store of value. Why is it a store of value? Because people believe it is, much like gold. You can gesture vaguely at the minor utility that gold has, the ability to be made into things of commercial value, but that's a fig leaf as much as it is to point to Bitcoin's potential use for payments. Hashrate and mining investment is a reflection of that belief. Don't take this as advice to buy Bitcoin at 50k. Normal currencies like USD are, in the end, also based on trust. They're just pieces of paper, and the value is in the belief that those pieces of paper will represent approximately the same thing tomorrow. Trillion dollar pieces of paper could be made worthless tomorrow, but everyone trusts that they won't due to the dire physical consequences. Even those currencies, that we consider normal today, were bootstrapped over a very long period by originally representing physical metal that could be redeemed.

dehrmann 5y ago
> Bitcoin is a store of value. Possibly. It is an asset, after all. The problem is that people are buying it because they expect it to appreciate significantly, hence "when lambo." There's a difference between believing something will retain its value and believing it will appreciate.
- tyrfing 5y ago
  Definitely true, retail trading of all sorts is basically gambling, and crypto has a lot of gamblers. I think this is a really bad thing. However, even the typical lambo-dreamer sustains the effect: it would be rare for them to cash out completely, unless that dream is suddenly dashed. What if they miss out on future growth? Rephrasing: how much bitcoin do you think the average bitcoin-billionaire owns? It's belief that stops them from selling, and belief that sustains the value. If you think that sounds like a ponzi, you're missing one thing: all else equal, dollar (and equivalent) denominated value will rise, because those currencies slowly devalue by design.
bb88 5y ago
People tend to "invest" in bitcoin. I don't "invest" in a bank account.
- deleted 5y ago
  [deleted]

dehrmann 5y ago

> Bitcoin is a store of value. Possibly. It is an asset, after all. The problem is that people are buying it because they expect it to appreciate significantly, hence "when lambo." There's a difference between believing something will retain its value and believing it will appreciate.

tyrfing 5y ago
Definitely true, retail trading of all sorts is basically gambling, and crypto has a lot of gamblers. I think this is a really bad thing. However, even the typical lambo-dreamer sustains the effect: it would be rare for them to cash out completely, unless that dream is suddenly dashed. What if they miss out on future growth? Rephrasing: how much bitcoin do you think the average bitcoin-billionaire owns? It's belief that stops them from selling, and belief that sustains the value. If you think that sounds like a ponzi, you're missing one thing: all else equal, dollar (and equivalent) denominated value will rise, because those currencies slowly devalue by design.

bb88 5y ago

People tend to "invest" in bitcoin. I don't "invest" in a bank account.

deleted 5y ago
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