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Yea this is what decriers don't explain. I may not view at as a strong currency for which it was intended but it's undeniable it has become a store for speculat

• nxmnxm99 4y ago
  I don't know how you equate "speculative value" with "valid projects". Bitcoin has value because people are long on crypto. "Long" has an end date - just because it's 50 years instead of 10 years doesn't mean it's not coming.
  • danuker 4y ago
    If there's less crypto being issued than fiat, and demand were constant as a % of people's wealth (which I admit is a big if), then crypto is bound to go up. There is no end date to government currency debasement.
    • lottin 4y ago
      This is to say that if demand outpaces supply, price is going to go up. However, this is true of any asset. So why mention specifically 'crypto', as if there was something magical about 'crypto' that means it's bound to go up?
      • danuker 4y ago
        My point is yes, it is true of any asset. You might as well own cans of beans. But the purpose is to stave off the effects of monetary expansion while staying liquid. Cryptocurrency is in a special niche in that parameter space. While other assets are bound to provide long-term returns greater than inflation (for example, stocks and bonds [1]), cryptocurrency can not surpass inflation long-term, but it still does so while demand is growing. In addition, even after it reaches a stable demand (which I reckon will be in 5-10 years, with market saturation), it will be a means of diversification (like gold is currently). [1] - https://totalrealreturns.com/ https://totalrealreturns.com/
        • lottin 4y ago
          I don't think I'm following you. You're using technical terms such as 'parameter space' in the wrong context. Maybe you want to sound clever, but you aren't making a lot of sense.
        • nxmnxm99 4y ago
          Except gold has value. Crypto does not.
    • nxmnxm99 4y ago
      Well yes - but the assumption is that demand will drop as more people realize crypto has no long term viability as real financial infrastructure.
    • pjc50 4y ago
      The supply of crypto isn't limited because people can just mint new chains. And of course, the more the number goes up on a chain the less attractive it is to actual users as opposed to holders.
      • danuker 4y ago
        Network effects dictate that value concentrates in the most popular chains. The top few will always dominate.
      • RestlessMind 4y ago
        > The supply of crypto isn't limited because people can just mint new chains. It is silly to lump all crypto coins in a single bucket. BTC is very different than DOGE or SHIB. I guess your parent post was about BTC supply being limited.
        • pcthrowaway 4y ago
          Interesting you say that, because it's actually very similar to Doge (though of course, dissimilar to Shib, because shib is an ERC20 token on Ethereum)
          • RestlessMind 4y ago
            So you also think that The Starry Night in MOMA is worthless because you can buy a very similar one on Etsy for $65? https://www.etsy.com/listing/1317189452/starry-night-by-vincent-van-gogh-3d https://www.etsy.com/listing/1317189452/starry-night-by-vinc...
            • pcthrowaway 4y ago
              I didn't say they were similar value, this is a strawman. But if we're looking at art, and you show me the original Starry night, a print, and then a picture of the kool-aid man busting through a wall, and ask me which 2 are most similar, I'm going to pick the starry nights