I don't see any way that cryptocurrencies create wealth so the only way to make money with them is if the price goes up. That's speculation. Investing in a stock is fundamentally based on the expectation the company's production of goods and services will provide a return on the investment.
Cryptocurrency
- Thread starter Playboi Carti
- Start date
Gold doesn't create wealth. Bitcoin is a commodity, like gold.
There is no speculation in stocks. I've read it all now. This thread delivers.
BTC stores value. Like gold.
The business model for ETH is doing transactions. The more transactions the more money made. If you stake ETH in the POS model think of it like buying shares in ETH and getting paid dividends. Transactions can be money transfer, Defi, NFT, and so on.
Name 2 great innovations. Crypto's been around for over a decade and we haven't seen massive innovations coming out of it besides blockchain.
NFT's aren't really anything groundbreaking
There are many, but here's a few
Bitcoin solves for a trustless digital peer to peer alternative monetary system that persists outside central authority.
NFTs are completely reimagining ticketing
I can deposit and lend without a central controlling party on AAVE
I can store large amount of data using a decentralized storage network outside of the control of Amazon/Google
Do people actually use BTC as a peer-to-peer alternative to cash? Seems pointless when I can send and request cash on apps like Venmo. No fees or delays.
There are some cool aspects of NFT's but I doubt it gets widely adopted. It's a pain for the average person to buy one.
3rd one literally sounds like a ponzi scam
That I agree with. But to me, gold seems a safer way to store value. You can physically hold it and it is very unlikely to go to zero.
Block-chain miners can be seen as providing a service, but my understanding is the returns are pretty low and access is getting more restricted.
At least with stocks, there are earning reports and such. They are actually companies making goods or providing services. Cryptos are purely speculation unless they are working on a new project to improve it.
Well I specifically stated POS because it's based on staking. So it's literally the same thing as buying stocks. Provide capital and get dividends.
POW is miners making money. Having help run a mining farm for a long time I can tell you returns aren't low. With ETH going POS mining is very likely going to take a hit. Depends on if DOGE or ETH Classic or something else steps up in any meaningful way.
With crypto you literally have real-time access to the financial data. Complete history for all time. No waiting on earnings reports or hiding anything. ETH is literally providing a service.
Well, the network effect for bitcoin is pretty strong. Adoption is increasing at a faster rate then the internet did. We are going to offer bitcoin lightning payments soon at my business. Instant settlement for about 3 cents as opposed to 2-3% for typical credit card transactions. Also, bitcoin is a global public network. Venmo is only in the US.
Can you name another technology that allows you to send value to anyone, anywhere in the world instantly for a few pennies? Also, it needs to be something outside of central control to be similar.
NFTs can be anything. You have very limited knowledge in this area.
AVVE a ponzi? You are out of your depth and have no idea what you are talking about.
Well, there aren't earning reports, because they aren't a company. ETH main service is a way to buy altcoins
Except gold is a real, physical and relatively rare commodity with uses and value. Bitcoin is zeros and ones that only has value if people believe it has value. Say for example someone hacks the block chain and create as much bitcoin for themselves as they want, instantly no value. (Sort of like what the Fed has been getting away with forever.)
Can you point me to another asset that meets this criteria? These are the things I find value in. I am happy to pivot if there is an alternative.
1. Fungible
2. Easily portable
3. Global
4. Easily divisible
5. Finite supply
6. cheap instantaneous settlement
7. Pre-set, immutable, monetary policy
And your company will convert that BTC to cash if people actually pay with that. No one wants to store revenue in a place that can drop 10% over the course of a business day.
Paypal, cashapp, wire transfers. How often do you need to send money overseas? For me, never.
And no, I'm not as balls deep into crypto as you seem to be. The idea of gaurenteed returns from "staking" a coin seems a lot like a scam. What do I know I guess.
Just watch a few CoffeeZilla videos on youtube about Crypto. The entire industry is shady and I will never place another dollar into it.
It fits 1,2, (3 sort of, USD is accepted some places outside of the US), 4, 5 not so much I suppose, 6, and probably not 7.
What currency fits all of those?
5. I know there is supposed to be a finite supply, but that could change at any point, either from malicious attacks or groups like the Fed muscling in. The Enigma code was unbreakable.
6. World governments and institutions will regulate for your safety until this is not true. You think they'll give up their cash cow and power. In person cash transaction are free, some electronic cash transfers are free or extremely low cost.
7. I'm guessing there will be regulation and adjustments to those policies over time. I know they are supposed to be preset and unchangeable, the dollar was once fixed to gold as well.
It may well be that bitcoin will be a mainstream or black-market currency for those with personal wallets for a long time to come. It, like any fiat currency, could also become worthless. Congress is already trying to pass legislation in the name of preventing money laundering and criminal activity. I appose those actions, but congress doesn't seem to listen to me.
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Just my opinion, but USD fits everything but 3, 5, and 7.
I don't buy things globally in my personal life so I don't care about 3.
I thinking an expanding money supply is a good thing, so 5 is a bad thing to me.
I think having an immutable monetary policy is a bad thing, so 7 isn't a selling point.