Posted on 01/05/2023 4:18:51 AM PST by catnipman
“In economic terms, nothing has intrinsic value.”
anything that has utility value automatically has intrinsic value ... things like food, fertilizer, fuel, medicine, building materials and a host of other raw materials and manufactured good necessary to sustain life ...
Your post is mostly correct—and I agree that crypto is a great way to separate fools from their money.
That said, it has been a major effort to keep banks from gambling in the modern era—they use their lobbyists to try to find ways so they win and .gov bails them out if they lose—and the FDIC is vastly under-funded and could not handle a major financial meltdown.
In addition in the event of a bank failure it could take several months before insured deposits would be reimbursed by FDIC.
The main reason I still keep funds in banks is my view that if the financial system collapses it won’t matter anyway—the dollar and the modern world economy will fall with it.
Crypto, on the other hand, is wild gambling with the house holding all the cards—I would prefer to do that at a casino.
The way the story read, it sounded like Celsius gets the interest. I assume the depositors get what’s left of the deposits but I’m not sure.
Thanks,
Another reason not to invest in crypto!
30% is the standard lawyer cha-ching.
No. Value is purely subjective. What one values another may not. And what is valued today may not be valued tomorrow. What's more, different individuals value the same thing differently. There would be no trade otherwise. There is nothing automatic or intrinsic about value. This is one of the most basic principles of economics.
“if you dont hold it, you dont own it.”
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I once heard someone say, “If you can’t wallow around on it naked while holding an AR-15, you don’t own it.”
Makes me smile just to think about it.
keep going you’re starting to make me chuckle
i like that! lol
In economic terms, nothing has intrinsic value.
____
Yes and no.
Yes - if all in the world people suddenly stop eating eggs, their value will become 0. But that’s unlikely!
The value of some entity is set by the supply demand balance.
But most stuff on the market has some real value - people can eat it, enjoy it, cuddle it, drive it etc. Not bitcoin.
Bitcoin was supposed to be a money alternative. There are some entities which will accept bitcoin for payment.
But apparently, as a money, bitcoin is very clumsy. It takes a long time to clear the payment and since the bitcoin value fluctuates so widely, by the time it clear, one side makes killing, the other looses money.
I have read an article where they tried to buy pizza with bitcoin. It took the whole day and afterward the pizza costed them like $200.
So now, the bitcoin is purely speculative.
It is great for criminals for money laundering, moving stuff across the borders and saving ill gotten gains.
All the other suckers are bound to loose!
Sure. But I didn't say things can't have value. I said things do not have intrinsic value. Intrinsic means immune to external influences.
The value of some entity is set by the supply demand balance.
So... not intrinsic.
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