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> Wall Street got ahold of it and now Bitcoin is primarily acting as a Store of Value for the purpose of speculative investments Insomuch as beanie babies are
by lern_too_spel 6mo ago
> Wall Street got ahold of it and now Bitcoin is primarily acting as a Store of Value for the purpose of speculative investments
Insomuch as beanie babies are a store of value. Speculative assets only have value as long as there are more greater fools to buy in. When you've exhausted the supply of greater fools, there is no more reason to buy the speculative asset because its price won't go up, so it will fall to its intrinsic value, which is the worth of a normal stuffie for a beanie baby (roughly $5) or the worth of a number stored on other people's disks for a Bitcoin (roughly $0), which is the value ultimately stored. Wall Street is only involved in Bitcoin to facilitate trade between fools because we have collectively done a poor job of regulating this madness, allowing so many fools to eventually lose their money to a distributed Ponzi scheme and sanctioned countries.
- Tr3nton 6mo agoYou can't send a Beanie Baby to someone on the other side of the planet instantly.
- lern_too_spel 6mo agoWhich is why they're more difficult for Russia and North Korea to steal and less useful speculative assets for them to fund their regimes.
- 3form 6mo agoRoughly the same argument could be applied to gold, and yet it has been used as a value store for ages. Can't say I like crypto, but I think better arguments can be made against it.
- grey-area 6mo agoGold has a use value.
- kedihacker 6mo ago90% percent of gold is used in jewelry or bars so use value isn't that much unless price is prohibiting use cases.
- 3form 6mo agoSo do beanie babies. Might be less than gold, but that's why I'm calling this argument flawed. The second part is that despite these disclaimers, I don't think gold has, in modern history, or will in our lifetimes, reach a price reflecting just the use/intrinsic value. The reasons being twofold: the storage of value IS a use itself; and importantly, which applies to Bitcoin and others, there are always people that will be willing to buy the dip, which is how the requested new generation of "fools" comes from.
- lern_too_spel 6mo ago> the storage of value IS a use itself And for this, having a private ledger is cheaper and more efficient for moving stored value in a way that is recoverable by law and doesn't support sanctioned regimes.
- mothballed 6mo ago1 Trillion of market cap can stay wrong longer than some random loud mouth on the internet can stay right about why everybody else is wrong. There is no 'intrinsic' value to most bits of information written on paper or disks, by some definition.