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Soybeans exist and people consume them. Obviously you can speculate on whether the price of soy beans will go up or down but they will always (excluding, of cou
by shuntress 4y ago
Soybeans exist and people consume them. Obviously you can speculate on whether the price of soy beans will go up or down but they will always (excluding, of course, obviously unreasonable scenarios) have some value because the soybeans themselves have some value.
The producers and consumers of soybeans are extremely likely to continue producing and consuming soybeans even if no one speculates on the value of soybeans. This is the "physicality" or "human interest" in soybeans.
Why would crypto be "here to stay" when there is zero use for it besides speculation?
- CapmCrackaWaka 4y agoAll kinds of speculative assets exist solely to hedge and make money on. The algorithmic traders on Wall Street aren’t trading soybeans futures because they can eat them. They’re making money. If people see price fluctuations in anything, and I mean literally anything, there will be people trying to capture those alphas. I should also point out I’m not bullish on crypto. I just acknowledge it’s unique asset class, and I don’t think it’ll just disappear.
- shuntress 4y agoI understand that speculative trading exists. I'm saying people will continue to speculate on soybeans because they will always have some value. With a purely speculative asset, the market will eventually run out of "bigger fools". At that point, any speculative trader will look at the asset and say "Why would I pay more for this than the 0 dollars it is worth?"
- fmc30 4y agoAny service can provide value, and Bitcoin does provide value: secure peer to peer transfer of money without a third party, nearly instantly. Why do you say there is zero use case? But like any service, its users decide what it's worth and sometimes that means network effects impact the value. I'm not making an argument for how much value this is or should have, but please stop saying the value is zero. It simply isn't true.
- shuntress 4y agoOn paper, sure. But that just is not the case in reality and probably never will be.