Good morning melt, I’ll take my crack at it. Here is my issue with the current monetary system aka fiat money.1. Ok so explain it to me then because it has zero value to me.
2. Yea great, it's like all other currencies in the world except it carries a ton of downside risk, and is incredibly unstable.
3. Becoming more renewable is not an argument against it being a giant waste of energy. It would still be a giant waste of energy if it was 100% renewable because that energy bitcoin is wasting could be spent on something actually productive, like powering homes. A credit card transaction uses 1/500,000th of the amount of energy a bitcoin transaction takes and it takes way less time.
4. It's completely indefensible, except you didn't even try to argue against my assertion. What value does bitcoin provide?
5. Great, something that maybe 0.1% of the world is ever going to do in their lifetime. I did send $70,000 in money when I bought my house, and it took me very little effort. I went to my bank, gave them the info for the title company, and it was all done. Now tell me how much it costs to send $50 to someone in bitcoin because it costs me $0 and takes like a minute, and that is something people do every day.
1. Ok so explain it to me then because it has zero value to me.
2. Yea great, it's like all other currencies in the world except it carries a ton of downside risk, and is incredibly unstable.
3. Becoming more renewable is not an argument against it being a giant waste of energy. It would still be a giant waste of energy if it was 100% renewable because that energy bitcoin is wasting could be spent on something actually productive, like powering homes. A credit card transaction uses 1/500,000th of the amount of energy a bitcoin transaction takes and it takes way less time.
4. It's completely indefensible, except you didn't even try to argue against my assertion. What value does bitcoin provide?
5. Great, something that maybe 0.1% of the world is ever going to do in their lifetime. I did send $70,000 in money when I bought my house, and it took me very little effort. I went to my bank, gave them the info for the title company, and it was all done. Now tell me how much it costs to send $50 to someone in bitcoin because it costs me $0 and takes like a minute, and that is something people do every day.
2. It has value because people think it does. Just like anything else.
99% of all tokens will go to zero.
I will just disagree vehemently with this. The reason why Apple has value is it produces goods and services that people want to buy. That's fundamentally different than crypto in many, many many cases.
Probably, but honestly I don't think this is very indicative of anything. If you look at the .com bust of 2000, there were a fairly high % of trash companies that just put .com in their name and took seed money from dummies then went to zero. Same thing is going to happen in Crypto now and IMO it's a natural cycle. I think Bitcoin will be around forever for example.
I just think the time to buy Bitcoin was in 2013 if you wanted to actually get wealthy, just like the time to buy Apple was in 2001 if you wanted to get wealthy. You can still buy both and they are probably good overall investments but I'm not going to go crazy on them like the crypto evangelists.
The problem is it acts like both. Also, it can be manipulated, which isn't different from money but makes it less good at its supposed intended task.I never compared crypto to a stock. Bitcoin is money. By definition, money is valuable by general consent of a group of people. Just like any other money it has value because some people agree that it does.
I never compared crypto to a stock. Bitcoin is money. By definition, money is valuable by general consent of a group of people. Just like any other money it has value because some people agree that it does.
The problem is it acts like both. Also, it can be manipulated, which isn't different from money but makes it less good at its supposed intended task.
Most people buying bitcoin don't use it as money. They are buying it as an investment. People talk about it like it's an investment. You can say it's money but that's not the primary use of it for most owners.
I believe you are not recognizing the difference between fiat money and sound money. Gold and bitcoin are examples of sound money. They can be a means of exchange among certain groups that agree to do so, but also function as an investment.
Bitcoin L2 has the capacity to be far cheaper and faster then the VISA network. So, it COULD function as a day to day money if needed or desired. But it doesn't need to in order to be valuable.
Do you really believe that the price of Bitcoin can't be or hasn't been manipulated? Being based on decentralized software doesn't prevent manipulation.Who can manipulate decentralized software?
Sound money is an investment to me. It's a store of value, that's the whole point.
It seems like every time a 6+ figure sum of money was moved around in crypto, it was somebody getting robbed or scammed. Exactly the kind of thing you WANT protection for. And as you said, for smaller/more practical amounts, the friction is higher than our current system - delays, transaction costs, etc.5. Great, something that maybe 0.1% of the world is ever going to do in their lifetime. I did send $70,000 in money when I bought my house, and it took me very little effort. I went to my bank, gave them the info for the title company, and it was all done. Now tell me how much it costs to send $50 to someone in bitcoin because it costs me $0 and takes like a minute, and that is something people do every day.
Do you really believe that the price of Bitcoin can't be or hasn't been manipulated? Being based on decentralized software doesn't prevent manipulation.
It seems like every time a 6+ figure sum of money was moved around in crypto, it was somebody getting robbed or scammed. Exactly the kind of thing you WANT protection for. And as you said, for smaller/more practical amounts, the friction is higher than our current system - delays, transaction costs, etc.
I never compared crypto to a stock. Bitcoin is money. By definition, money is valuable by general consent of a group of people. Just like any other money it has value because some people agree that it does.
Hell a tweet from Elon Musk can make the market nutty.Who can manipulate decentralized software?
It seems like every time a 6+ figure sum of money was moved around in crypto, it was somebody getting robbed or scammed. Exactly the kind of thing you WANT protection for. And as you said, for smaller/more practical amounts, the friction is higher than our current system - delays, transaction costs, etc.
Good morning melt, I’ll take my crack at it. Here is my issue with the current monetary system aka fiat money.
Money today is technically not backed by anything physical. Sure one can say it is backed by governments, but that’s a system based in faith. We are lucky to live in the US where the dollar has been the global currency for many years. However, even the dollar has been greatly devalued due to the amount of money printed. Graph below gives you a good indication of dollars in circulation and you can see that it has gone parabolic. This money is also not even distributed. If you receive this freshly printed money first, you don’t suffer any of the inflation impacts. However, if you are the last person to see it, then guess what the market has already adjusted for it and prices have been adjusted. Additionally, incomes are just not keeping up with it.
Now let’s take this to another level. Imagine you were not fortunate enough to be born in the US. After all most people can’t really control that. If instead you were born in Argentina, in the last 10 years alone your money became 25x less valuable.
In my opinion, the current system is unfair and hurts those at the bottom the most. A currency like bitcoin cannot be manipulated like money is today. There will always only exist 21m bitcoin units.
Hope this helps.