Posted on 05/20/2021 3:53:55 PM PDT by DUMBGRUNT
Something has value if people agree that it does. That’s the only requirement.
—” The value of bitcoin is based on it having a permanent quantity limit, unlike the US dollar.”
How does that work with an unlimited number of Cryptocurrencies’?
Gresham’s law, “bad money drives out good”, will kill the lot of them off.
The Turkish bitcoin exchange worked out so well?
While there is an infinite number, it takes time to mine (validate) them, and that development time is calculated into the value of the existing coins. Bitcoin mining requires an Application-Specific Integrated Circuits (ASIC) hardware device which is expensive and consumes a lot of electricity. It can take months to a year to overcome the ASIC and electricity cost to start earning profit.
Keep in mind that governments have an infinite number of zeros and ones they can inject into a financial system. They can be easily and fraudulently shown to exist as "value" in multiple locations. With cryptocurrencies, at least each coin is serialized and takes its financial history with it.
No disagreement, except there, is no underlying value with bitcoin.
“Smith’s theory of value was very similar to the later utility theories in that Smith proclaimed that a commodity was worth whatever labor it would command in others (value in trade) or whatever labor it would “save” the self (value in use), or both. However, this “value” is subject to supply and demand at a particular time”
No diamond mine with dwarfs laboring to pick out the diamonds? The labor theory of value!
What is the intrinsic value of a crypto coin?
Some computer humming day and night creating heat?
Pls see #43
“ How does that work with an unlimited number of Cryptocurrencies’?
The vast majority will never catch hold and will dwindle into oblivion
While BTC has taken a LOT of hits this week, from Musk’s dumping it, denegrating it, central banks dissing unregulated cryptos, “hidden” ransoms paid to the tune of $5M to $90M, and lots of smaller stories, it is defying gravity hovering in the low $40k range.
It’s like the DOW this year - there is no real good news in the economy under BidAn/Caballa, yet it hovers well above $33K, also defying gravity.
Not sure what to make of that... it’s kinda baffling.
It sure is and at $40,000 each there is a whole lot of people thinking "I wish I would have bought some bitcoin".
Douche Bank can Suck it.
Paper money has no value underlying it but the Fed Reserve, so. But you are right about it not being an asset like a product. Its an encrypted currency.
I’d say the only way for us to avoid inflation is for productivity to rise, and for that stocks are a better recourse. But if the Market crashes then the money supply disappears too, so.
—”Does he think gold has value because it has some necessary purpose to life?!”
Pls see #53
If only that heat could be converted to electricity, we’d have the makings of perpetual motion... and perpetual energy.
Evidently you are grammatically/mathematically impaired.
A bitcoin can be divided into smaller portions, like a dollar can be divided into pennies.
Doesn’t increase the number of bitcoins.
—”Something has value if people agree that it does. “
Only when they are on both sides of a transaction.
Zillow may show your house with a value of X.
Means nothing until you close the deal and the check clears.
Three or four of these "Tulips" could buy you a Ferrari.
—”The vast majority will never catch hold and will dwindle into oblivion”
And Gresham’s law will drive the remainder into oblivion.
—”Not sure what to make of that... it’s kinda baffling.”
Any action involving humans tends to go in that direction.
Gresham’s law says undervalued money will drive out overvalued money.
You may be correct.
We shall see!
It's much easier to mine an once of gold right now than to mine one bitcoin. The supply of bitcoin is fixed forever at 21 million. It's supply and demand and if the global demand remains and continues expanding even at a slow but steady pace bitcoin will reach a staggering price level.
So it's a lot of wishful thinking alright. Mostly by people who wish they would have bought some bitcoin.
But....all is not lost if you feel you missed out. What many people don't even realize is you don't need to buy whole bitcoin at 40K. You can buy a fraction of a bitcoin. If you want just $100 in bitcoin you can do that very easily. When bitcoin hits 120k your $100 will be worth $300 or if it goes down to 20k your $100 would be worth $50. It's just like any other investment.
—”Evidently you are grammatically/mathematically impaired.”
Why yes, of course, I happen to be a simple Dumbgrunt.
That said, you seem to miss the point about the many DIFFERENT cryptocurrencies. Not division of any specific coin.
And YES, it would increase the total number of different coins.
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