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> BTC are like casino chips. When you goto Vegas and at the Bellagio you give them $100 and you get back $100 worth of Bellagio chips (...) This comparison is
by nuerow 5y ago
> BTC are like casino chips. When you goto Vegas and at the Bellagio you give them $100 and you get back $100 worth of Bellagio chips (...)
This comparison is not valid at all because, unlike any crypto like BTC, the value of Bellagio chips is specified by a central authority (Bellagio itself) which guarantees the exchange between chips and cash with a fixed and very stable exchange rate.
With crypto like BTC, not only their value fluctuates wildly and thus fail as a store of value but also the only option you have to exchange them for fiat currency is to sell them to other customers in an open market.
The best comparison with BTC is indeed tulips during the Dutch tulip craze: they have no intrinsic market value, their market was highly speculative, and demand was driven by mass hysteria.
- ashwagary 5y ago>their value fluctuates wildly and thus fail as a store of value... Sounds like TSLA and many other publicly traded companies are bad stores of value according to that argument. Many people with stock exposure in their retirement portfolio would disagree.
- sidibe 5y agoStocks aren't supposed to be a store of value
- ashwagary 5y agoThanks to mismanagement of the US economy, debasement of the dollar, and 0% interest rates, stocks are now used as stores of value because it's impossible to beat the hurdle rate and stay liquid with any other asset. Bitcoin fixes this.
- nuerow 5y ago> Sounds like TSLA and many other publicly traded companies are bad stores of value according to that argument. If you intend to have a serious and honest discussion on crypto then the very least you should do is go acknowledge the frequent crashes that result in halving their market value. For instance, BTC still hasn't recovered from the latest crash a few months ago, when it tanked to half it's value almost overnight. Otherwise, these nin-sequiturs don't lead anywhere.
- kobasa 5y ago"For instance, BTC still hasn't recovered from the latest crash a few months ago" it made new ATHs this week. I mean what do you people want, that it always stays at ATH every single ticking second? Zoom the f out ffs.
- lostmsu 5y agoIf you want serious discussion, you should first realize, that there's no "gold standard" of value and it is all relative. So there's not much difference in saying that BTC crashed 50% from its peak, from saying every other currency crashed 50% when BTC was at its peak.
- ashwagary 5y ago>For instance, BTC still hasn't recovered from the latest crash a few months ago... Bad take, you obviously haven't seen the price chart in a while. BTC had new all time highs just a few days ago. Tesla has halved and recovered multiple times as well. Feel free to put forth a better argument, this one is weak.