4 ms·

who is buying crypto and not expecting to make a profit from it?

by itake 3y ago

rcme 3y ago
You could be buying it to interact with a smart contract.
- vkou 3y ago
  In theory, yes. In practice, most of the interaction with smart contracts consists of locking up your money in one and expecting yield.
civilitty 3y ago
People buying narcotics and narcotics accessories.
codetrotter 3y ago
> who is buying crypto and not expecting to make a profit from it? Me. I put my savings in Bitcoin because I dislike the tradfi system. All I want is to be in control of my savings and to be able to freely transact with anyone anywhere in the world. I am still affected by the exchange rates to USD and EUR. But the hope is that in the future I will be able to use BTC directly more often and not even have to touch USD or EUR. Perhaps one day even my country will get with the times and allow me to pay my taxes in BTC directly instead of having to exchange it to government funnymoney first.
- SketchySeaBeast 3y ago
  > Perhaps one day even my country will get with the times and allow me to pay my taxes in BTC directly instead of having to exchange it to government funnymoney first. Something tells me your government cares more about their funnymoney than yours. I can't imagine a government wanting to take on the volatility of bitcoin for a tax payment. What possible compelling argument is there for them to do that?
  - EscapeFromNY 3y ago
    Right now every state that lets you pay taxes with crypto immediately converts it into USD. So the govt is not taking on any volatility risk.
  - mhluongo 3y ago
    El Salvador is a clear counter example. I can certainly imagine why a country with a history of poorly managing their own currency (and that for whatever reason doesn't want to be aligned to USD) might choose to use a more "neutral" fixed supply currency.
- preseinger 3y ago
  there is no universe in which a (edit: financially sound) nation will accept tax payments in a denomination over which it has no influence or control (edit: nations that peg their currency to the euro or the dollar are clearly exceptions to what i'm describing here) this is literally money 101 type stuff, wars have been fought over this stuff, and it's insane that crypto folks don't seem to understand any of it
  - deleted 3y ago
    [deleted]
  - rafaelero 3y ago
    That's why Bitcoin is so powerful: they can't do anything about it and, if people choose to use it, the government has no choice other than accept it as the standard.
    - preseinger 3y ago
      a government that accepts tax payments in BTC would be abandoning its financial authority to the bitcoin network, over which it has no influence whatsoever this is suicidal for any nation with even a nominal amount of financial autonomy maybe it's something that failed states like venezuela or somolia would consider, but it's a complete non-starter for anyone else the idea that "the people" can force countries to accept tax receipts in BTC is absolute unhinged nonsense, read a fucking book
      - rafaelero 3y ago
        > the idea that "the people" can force countries to accept tax receipts in BTC is absolute unhinged nonsense, read a fucking book Government money will worth shit if people stop putting their savings in it. Unless you think the US government will make it ilegal to possess BTC, then it is just a matter of time for people to migrate to a better store of value.
        preseinger 3y ago
- imtringued 3y ago
  Why do you care about paying taxes in funny money? I never understood complaints about inflating money by gold bugs or cryptocurrency advocates. The presence of a mismanaged currency is your opportunity to profit so you should be cheering for its collapse. The only situation where you end up losing out is if you have a fixed income in the mismanaged currency. You want your tax bill to inflate away so the government accepting Bitcoin for taxes is not that meaningful to you. I mean, if I follow the same logic I should advocate for collapsing the economy with tight money policies because I can then work on financial innovations that undo the government intervention.
creato 3y ago
People paying ransoms.
tornato7 3y ago
People buy commodities like Oil to make a profit, too. The question is, what cryptos are commodities and which are securities?
- steveBK123 3y ago
  Is it a future / forward / swap / put / call / etc? Security. Is it a barrel of oil / unit of BTC? Commodity/Currency.
  - MikeDelta 3y ago
    Indeed. In general, security is a product. Commodity and currencies are asset classes. BTC would fall under the crypto asset class. I don't think financial institutions see it a currency in terms of asset class.
toast0 3y ago
People using crypto for funds transfer. Buy now, transfer immediately, with an expectation that the other end sells immediately. No desire or expectation of profit.
dagaci 3y ago
For many people inside an defintely outside the USA sphere, theres a lot of utility in holding some cash money in Crypto even as a staging point for payments.

who is buying crypto and not expecting to make a profit from it?

by itake 3y ago

who is buying crypto and not expecting to make a profit from it?

rcme 3y ago

You could be buying it to interact with a smart contract.

vkou 3y ago
In theory, yes. In practice, most of the interaction with smart contracts consists of locking up your money in one and expecting yield.

civilitty 3y ago

People buying narcotics and narcotics accessories.

codetrotter 3y ago

> who is buying crypto and not expecting to make a profit from it? Me. I put my savings in Bitcoin because I dislike the tradfi system. All I want is to be in control of my savings and to be able to freely transact with anyone anywhere in the world. I am still affected by the exchange rates to USD and EUR. But the hope is that in the future I will be able to use BTC directly more often and not even have to touch USD or EUR. Perhaps one day even my country will get with the times and allow me to pay my taxes in BTC directly instead of having to exchange it to government funnymoney first.

SketchySeaBeast 3y ago
> Perhaps one day even my country will get with the times and allow me to pay my taxes in BTC directly instead of having to exchange it to government funnymoney first. Something tells me your government cares more about their funnymoney than yours. I can't imagine a government wanting to take on the volatility of bitcoin for a tax payment. What possible compelling argument is there for them to do that?
- EscapeFromNY 3y ago
  Right now every state that lets you pay taxes with crypto immediately converts it into USD. So the govt is not taking on any volatility risk.
- mhluongo 3y ago
  El Salvador is a clear counter example. I can certainly imagine why a country with a history of poorly managing their own currency (and that for whatever reason doesn't want to be aligned to USD) might choose to use a more "neutral" fixed supply currency.
preseinger 3y ago
there is no universe in which a (edit: financially sound) nation will accept tax payments in a denomination over which it has no influence or control (edit: nations that peg their currency to the euro or the dollar are clearly exceptions to what i'm describing here) this is literally money 101 type stuff, wars have been fought over this stuff, and it's insane that crypto folks don't seem to understand any of it
- deleted 3y ago
  [deleted]
- rafaelero 3y ago
  That's why Bitcoin is so powerful: they can't do anything about it and, if people choose to use it, the government has no choice other than accept it as the standard.
  - preseinger 3y ago
    a government that accepts tax payments in BTC would be abandoning its financial authority to the bitcoin network, over which it has no influence whatsoever this is suicidal for any nation with even a nominal amount of financial autonomy maybe it's something that failed states like venezuela or somolia would consider, but it's a complete non-starter for anyone else the idea that "the people" can force countries to accept tax receipts in BTC is absolute unhinged nonsense, read a fucking book
    - rafaelero 3y ago
      > the idea that "the people" can force countries to accept tax receipts in BTC is absolute unhinged nonsense, read a fucking book Government money will worth shit if people stop putting their savings in it. Unless you think the US government will make it ilegal to possess BTC, then it is just a matter of time for people to migrate to a better store of value.
      - preseinger 3y ago
imtringued 3y ago
Why do you care about paying taxes in funny money? I never understood complaints about inflating money by gold bugs or cryptocurrency advocates. The presence of a mismanaged currency is your opportunity to profit so you should be cheering for its collapse. The only situation where you end up losing out is if you have a fixed income in the mismanaged currency. You want your tax bill to inflate away so the government accepting Bitcoin for taxes is not that meaningful to you. I mean, if I follow the same logic I should advocate for collapsing the economy with tight money policies because I can then work on financial innovations that undo the government intervention.

creato 3y ago

People paying ransoms.

tornato7 3y ago

People buy commodities like Oil to make a profit, too. The question is, what cryptos are commodities and which are securities?

steveBK123 3y ago
Is it a future / forward / swap / put / call / etc? Security. Is it a barrel of oil / unit of BTC? Commodity/Currency.
- MikeDelta 3y ago
  Indeed. In general, security is a product. Commodity and currencies are asset classes. BTC would fall under the crypto asset class. I don't think financial institutions see it a currency in terms of asset class.

toast0 3y ago

People using crypto for funds transfer. Buy now, transfer immediately, with an expectation that the other end sells immediately. No desire or expectation of profit.

dagaci 3y ago

For many people inside an defintely outside the USA sphere, theres a lot of utility in holding some cash money in Crypto even as a staging point for payments.