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>cryptocurrencies have no intrinsic value If you get paid $20/hr, you can think of $20 being intrinsically worth an hour of your labor until you quit or get a

by Aunche 4y ago

>cryptocurrencies have no intrinsic value If you get paid $20/hr, you can think of $20 being intrinsically worth an hour of your labor until you quit or get a raise. The dollar isn't actually intrinsically valuable, but it's mostly treated as such anyways because no matter how the currency changes due to inflation or exchange rates, you're still only getting $20. On the other hand, if you get paid in crypto, you'd get paid $20 worth of that crypto. Today it may be 1 coin, tomorrow it could be 2, and in a month it could be .1 coins. In that case, how many coins you get paid in this crypto completely depends on the supply and demand on this crypto. >the government seems to show less and less restraint in exchange for instant gratification The good news is that. Raising interest rates is the opposite of short term gratification, which is why so many people want it to stop. >Emergency measures are there for just that, emergencies, but it seems the bar for what qualifies for an emergency gets lower and lower. Agreed. But you can't blame the the cardiovascular surgeon for performing a triple bypass surgery. The blame falls under the patient who is addicted to eating barrels of pork.

x-complexity 4y ago
> >cryptocurrencies have no intrinsic value > If you get paid $20/hr, you can think of $20 being intrinsically worth an hour of your labor until if you quit or get a raise. The dollar isn't actually intrinsically valuable, but it's mostly treated as such anyways because no matter how the currency changes due to inflation or exchange rates, you're still only getting $20. On the other hand, if you get paid in crypto, you'd get paid $20 worth of that crypto. Today it may be 1 coin, tomorrow it could be 2, and in a month it could be .1 coins. In that case, how many coins you get paid in this crypto completely depends on the supply and demand on this crypto. Piggybacking on this, the same example can be extended towards other currencies & assets: That $20 could've also been paid in pounds / euros / yen / gold / silver / seashells / MTG cards. The first 3 are less volatile than the rest, mainly because of the per-unit density of liquidity that can absorb the exchanges in between A & B (ex. USD-yen, yen-euro). For the currencies, they have much deeper liquidities to exchange with/against concentrated around narrower price ranges, and as such prices are not as volatile as commodities & assets. The exception to this however is if the currency in question is perceived as weak.

by Aunche 4y ago

x-complexity 4y ago

> >cryptocurrencies have no intrinsic value > If you get paid $20/hr, you can think of $20 being intrinsically worth an hour of your labor until if you quit or get a raise. The dollar isn't actually intrinsically valuable, but it's mostly treated as such anyways because no matter how the currency changes due to inflation or exchange rates, you're still only getting $20. On the other hand, if you get paid in crypto, you'd get paid $20 worth of that crypto. Today it may be 1 coin, tomorrow it could be 2, and in a month it could be .1 coins. In that case, how many coins you get paid in this crypto completely depends on the supply and demand on this crypto. Piggybacking on this, the same example can be extended towards other currencies & assets: That $20 could've also been paid in pounds / euros / yen / gold / silver / seashells / MTG cards. The first 3 are less volatile than the rest, mainly because of the per-unit density of liquidity that can absorb the exchanges in between A & B (ex. USD-yen, yen-euro). For the currencies, they have much deeper liquidities to exchange with/against concentrated around narrower price ranges, and as such prices are not as volatile as commodities & assets. The exception to this however is if the currency in question is perceived as weak.