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>>You have resources, someone else has a really good idea for how to use them. Financial instruments let the situation play out sensibly (you lend them resource
by NikolaNovak 5y ago
>>You have resources, someone else has a really good idea for how to use them. Financial instruments let the situation play out sensibly (you lend them resources, get back resources + something) with easy-to-manage legal enforcement if something goes wrong.
I agree with that in general; however, that's not the current premise of most cryptocurrencies - I see them more like gold in that you buy them and hold on to them; not as a capitalist investment into anything specific or generic. I may be wrong...
- iskander 5y agoFor newer cryptocurrencies you often buy them and then either (1) stake them (earn rewards for contributing to network security) or (2) deposit them in a crypto-bank like Aave and earn yield from having your money loaned out. Increasingly people don't look to cash out to USD but rather stay within the crypto ecosystem. I do think that BTC and its clones engender a certain dragon-cache hoarding mentality that aligns with either plans to eventually cash out at a higher price or some kind of apocalyptic vision where eventually USD is no longer used at all.