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>To put this in simplest terms: Every cent someone makes from whatevercoin, has to be put into the system by someone else. A house appreciates in value since li

by cortic 5y ago

>To put this in simplest terms: Every cent someone makes from whatevercoin, has to be put into the system by someone else. A house appreciates in value since living space is a scarce commodity facing growing demand...it's sarcity and thus its appreciation in value is a natural process caused by usefulness and demand. You just fell over your own point there. Both houses and bitcoins go up in price if the demand for them goes up or the supply of them goes down... calling demand 'put into the system' when you disapprove changes nothing. Also there are plenty of people who use houses as 'tokens of value' only to flip them when the market is favorable, and there are plenty of people who use crypto as a functional currency when other options are unfavorable to their circumstance.

usrbinbash 5y ago
A house has intrinsic value. People can live in a house, store things there, or rent it out. Its value was not put into the system, it simply exists, period. Even if the market crashes, a house is still useful and can appreciate again. Its market-value is dependent on both demand and usefulness. The second variable doesn't change. Blorkchain "currencies" have no intrinsic value, because they have no other use than as tokens. Their market-value depends entirely on the market, entirely on the money pumped into the system. In a way, blorkchain coins are a bit like overvalued stocks, the difference is, there is not even a company behind it, there is only the market evaluation.
- cortic 5y ago
  >A house has intrinsic value. People can live in a house, store things there, or rent it out. Its value was not put into the system, it simply exists, period. Even if the market crashes, a house is still useful and can appreciate again. Its market-value is dependent on both demand and usefulness. The second variable doesn't change. Let me answer that by showing you a mirror perspective of your point; Crypto has intrinsic value. People can use Crypto to exchange or store value bypassing dangerous intermediaries and structures of control. Its value was not put into the system, it simply exists, period. even if the housing market crashes, a crypto currency will still be useful and can appreciate. Cryptos market-value is dependent on both demand and usefulness. The second variable doesn't change. Now the point here is that the mirror argument is about as right as yours. You can imagine ways crypto will devalue, i can imagine ways your house will devalue. You can imagine using your devalued house for things that are useful to you, i can imagine using a devalued crypto currency for things that are useful to me.
  - usrbinbash 5y ago
    > i can imagine using a devalued crypto currency for things that are useful to me. What are examples of these things? Something which has no use other than as a token of value, once devalued, can no longer be used to exchange value. Sure, one could still transfer 100000000 whatevercoins to whoever after they are devalued, but what's the point if there is no value to them any more? > People can use Crypto to exchange or store value bypassing dangerous intermediaries and structures of control. EUR, USD and CNY wont suddenly lose a lot of their value overnight. They are tokens of value as well, with no use other that to exchange value between people. In that regard, they are similar to blorkchain "currencies". The difference lies in exactly these structures of control. They are regulated, and powerful actors (states) have an interest in their stability. Its a feature, not a bug.

by cortic 5y ago

usrbinbash 5y ago

A house has intrinsic value. People can live in a house, store things there, or rent it out. Its value was not put into the system, it simply exists, period. Even if the market crashes, a house is still useful and can appreciate again. Its market-value is dependent on both demand and usefulness. The second variable doesn't change. Blorkchain "currencies" have no intrinsic value, because they have no other use than as tokens. Their market-value depends entirely on the market, entirely on the money pumped into the system. In a way, blorkchain coins are a bit like overvalued stocks, the difference is, there is not even a company behind it, there is only the market evaluation.

cortic 5y ago
>A house has intrinsic value. People can live in a house, store things there, or rent it out. Its value was not put into the system, it simply exists, period. Even if the market crashes, a house is still useful and can appreciate again. Its market-value is dependent on both demand and usefulness. The second variable doesn't change. Let me answer that by showing you a mirror perspective of your point; Crypto has intrinsic value. People can use Crypto to exchange or store value bypassing dangerous intermediaries and structures of control. Its value was not put into the system, it simply exists, period. even if the housing market crashes, a crypto currency will still be useful and can appreciate. Cryptos market-value is dependent on both demand and usefulness. The second variable doesn't change. Now the point here is that the mirror argument is about as right as yours. You can imagine ways crypto will devalue, i can imagine ways your house will devalue. You can imagine using your devalued house for things that are useful to you, i can imagine using a devalued crypto currency for things that are useful to me.
- usrbinbash 5y ago
  > i can imagine using a devalued crypto currency for things that are useful to me. What are examples of these things? Something which has no use other than as a token of value, once devalued, can no longer be used to exchange value. Sure, one could still transfer 100000000 whatevercoins to whoever after they are devalued, but what's the point if there is no value to them any more? > People can use Crypto to exchange or store value bypassing dangerous intermediaries and structures of control. EUR, USD and CNY wont suddenly lose a lot of their value overnight. They are tokens of value as well, with no use other that to exchange value between people. In that regard, they are similar to blorkchain "currencies". The difference lies in exactly these structures of control. They are regulated, and powerful actors (states) have an interest in their stability. Its a feature, not a bug.