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Those who continue to invest in and use the Lightning (layer 2) network think it will be used as currency but most see it as a long term storage of value, at le
by block_dagger 2y ago
Those who continue to invest in and use the Lightning (layer 2) network think it will be used as currency but most see it as a long term storage of value, at least until infrastructure supporting layers 2 and 3 mature.
As for “magically,” there’s nothing magic about its increase in value as it replaces legacy technology, chiefly gold as a store of value.
- derriz 2y agoExcept it has none of the properties of gold as an asset. The value of bitcoin is highly correlated with equities and anti-correlated with gold. It’s the opposite of what you want to be holding as a hedge against a stock market crash.
- LAMike 2y agoIt is more rare than gold and getting more rare every 4 years. What is the current supply of gold and what will it be in 2050?
- nadermx 2y agoGold has a utility, used in a large swath of electronics. Can always be sold to make something. Bitcoin can only be sold if there is a fiat currency trading in it
- desumeku 2y agoElectronics didn't exist for the thousands of years that gold was used as currency. The fact is, it only has most of the value that it does because it was rare, malleable, particularly shiny, and because metallism was simply the easiest way (or at least one of the easiest ways) to invent the concept of currency and a monetary system.
- nadermx 2y agoEven then it had a utility as jewlery. Bitcoin fails on that.
- deleted 2y ago[deleted]
- throwawaymaths 2y agoyou don't want your currency to be useful though. the value inherent in a currency is its ability to be verified without trusting the counterparty.
- heurist 2y agoBitcoin's utility is that you can both hold it in your hands and send it across the world in 10 minutes with no intermediaries. Can't do that with gold.
- 2030ai 2y agoIt is getting less less rare every 4 years.
- LAMike 2y agoIn what way? I assume you know how the minting of coins work with miners
- elevaet 2y agoThere is an infinite supply of computer algorithms. Gold is an element.
- block_dagger 2y agoYour comment indicates that you fundamentally misunderstand BTC. I recommend reading Broken Money by Lyn Alden.
- elevaet 2y agoNo, I get it, thank you very much. Early adopter of BTC here, I've read the whitepaper and all that, sodl when I realized what an energy pig it had become. The only thing that separates BTC from all the derivative shitcoins is hype and stories we tell about it. Bitcoin is itself interchangeable with an infinite number of related algorithms/schemes. Gold extraction definitely has its problems, but it's a fundamental element of the universe. In 100 years, I know which one will definitely still hold value.
- LAMike 2y agoAre you going to stop using AI because it consumes too much energy?
- markasoftware 2y agoWhen I think of the "properties" of gold I don't think of how the price behaves, but rather that the total supply of it is limited (though Bitcoin actually does a much better job at limiting supply, since gold'll keep being mined for a long time and the supply is hard to predict) and that, other than theft, there's no way for someone else to take it from you (compare to eg money at a bank that can collapse or in a stock of a company that can go bankrupt)