Let's have a debate in substance and not hype. In order to share wealth, one first have to create it. How does crypto actually create wealth besides its speculative nature? Please enlighten us (not a youtube video please).
Fear of missing out
- Thread starter brewski1984
- Start date
- Watchers 32
Let's have a debate in substance and not hype. In order to share wealth, one first have to create it. How does crypto actually create wealth besides its speculative nature? Please enlighten us (not a youtube video please).
counter_violent
Legendary member
- Messages
- 12,669
- Likes
- 3,787
counter_violent
Legendary member
- Messages
- 12,669
- Likes
- 3,787
Using Bitcoin as the example. They have a cost to produce and are harder to mine going forward and have a finite supply which creates scarcity. If enough people want them, then price goes up as in any other supply demand marketplace.
https://www.investopedia.com/terms/b/bitcoin-mining.asp
https://www.investopedia.com/ask/answers/100314/why-do-bitcoins-have-value.asp
darktone
Veteren member
- Messages
- 4,019
- Likes
- 1,086
Well it come across as a kind of potato potarto type gig then eh, cos if its a number in our account or cash in our wallet, ave joe calls it money.
Perhaps a better way to describe it might be:-
The government has the right to create all monies but for the vast most part it chooses not to. Instead it gives that right via license to commercial banks, so that they do so, at interest. The government however has the sole right to print money on paper and stamp coins.
Its a funny thing to give away such a power isnt it.
For several reasons, yes:
1) It is the first "bubble" that allows the poor and young people to participate.
2) Unmasks the complex net of financial corruption behind the economic mainstream by allowing the mathematical tracking of any movement or transaction.
3) It is the first really viable asset that is not based on debt.
4) It is the first asset that prohibits the destruction of its value to favor the mainstream.
5) It can not be confiscated by the almighty.
6) Generates wealth through various means: empowering the code, keeping the network secure and expanding globally - to achieve hyperbitcoinization - its doctrine.
7) Generates wealth allowing economic actors to participate not only in the market but also in the source of the exchange.
8) It makes the rigid delusional rules of classical economics show its true nature and precipitates new economic theories that allow a true social evolution -for example, the absurd theories about deflation and hyperinflation sustained by the economic mainstream- understanding the reflexive nature of the economy.
And many others that give to write books and essays and even create a new economic school.
counter_violent
Legendary member
- Messages
- 12,669
- Likes
- 3,787
So if anyone wants a longer answer than the vid posted by darkie, they can watch this.
The notion of Bitcoin's supply by design being capped is frequently advocated to argue the supply and demand imbalance will invariably lead to a price rise. The problem is that this reasoning is seriously flawed for a number of reasons. We know as a fact forks had been generated in the form of BTC cash and Gold. Additionally, there are plenty of supply of clones/surrogate "coins" that can easily replace/substitute Bitcoin. The technology itself is not proprietary. More importantly, you have yet to demonstrate how Bitcoin actually generates wealth through a typical economic chain that result in a service or product. Currently Bitcoin's intrinsic economic valuation is sustained through "greater fools" rather than any attributable economic value as a service or product.
In essence, what economic service or product that you get for paying $16,000 for a single Bitcoin? It is simply speculative valuation rather than economic wealth creation.
tar
Legendary member
- Messages
- 10,443
- Likes
- 1,314
A few new forks are coming soon , the latest one is superBTC they created it out from thin air - quantitative easing - its already trading and worth 0.016BTC , its a more advanced bitcoin .
https://yobit.net/en/trade/SBTC/BTC
I´m not sure I would all it QE....
Dollar QE is printing new Dollars out of thin air, your so called "Bitcoin QE" is creating new alt coins out of a limited amount of Bitcoins.
With the former conventional QE, we are forced to accept these faurged dollars. With the latter QE, whether these new coins are accepted as money or not will be up to the marketplace.
Seriously folks, this is a financial compernican revolution. It´s about time the monopoly over money is taken away from the state, it has only lead to avast amount of suffering, corruption and the establishment of a parasitical elite that must be removed.
Pat494
Legendary member
- Messages
- 14,614
- Likes
- 1,588
I think the State has a duty nay an obligation to its citizens to manage the country's finances. We certainly should not leave it up to individual financiers. They are the biggest crooks going.
korthdoesit
Newbie
- Messages
- 6
- Likes
- 0
Just to learn how Money is really created could change the view about Investing for most of the people! :!:
darktone
Veteren member
- Messages
- 4,019
- Likes
- 1,086
Agreed, and a lot more to boot.
Always, I am not ashamed to be humbled - you fancy giving it a go?
darktone
Veteren member
- Messages
- 4,019
- Likes
- 1,086
counter_violent
Legendary member
- Messages
- 12,669
- Likes
- 3,787
All I asked is if youve considered the possibility, the possibility that your actual understanding of money might be far less than your self perceived understanding of money.
Based on what youve posted so far, Ive a view, but who cares. I know I dont
If only more people took the time to consider this statement :arrowd:
Me and you, we is largely the same bruv! We dont know shît! The difference is, I know I dont know shît!!
All I asked is if youve considered the possibility, the possibility that your actual understanding of money might be far less than your self perceived understanding of money.
Based on what youve posted so far, Ive a view, but who cares. I know I dont
Well you've alluded to me not fully understanding money and i have offered you an opportunity to enlighten me. Based on you now saying you don't care I can only surmise you cannot offer enlightenment and I am now left wondering if all those books and white papers I have read on the subject are fictional.
wallstreetwarrior87
Senior member
- Messages
- 2,068
- Likes
- 389
Is it not the case that everything we have is based on faith?
Faith that Gold has meaning / faith that FIAT currency has meaning / faith that Crypto currency has meaning?
We then change the word “meaning” into value and hows its underpinned. We value gold/silver/oil etc as its underpinned by FIAT currency (currently) or we can argue it works visa versa. We value Bitcoin as it is also underpinned by FIAT currency (how else do we get $16k a coin)
If I own a market stall and someone wants to buy a kilo of apples using a bar of gold, I have a decision to accept the transaction or not, and that decision is based on the fact I can cash out the gold, either now or at a later date. They could give me a piece of Picasso art (again underpinned by a currency valuation).
So for now, the likes of Bitcoin only have value if it is being underpinned by FIAT currency, as this is all we have known. BUT it could all change, adapt or die, but that is the future and it will play out the way it is meant to.
I have yet to meet anyone whom is purchasing Bitcoin for any other reason other than to increase their FIAT currency wealth.
That’s not to say there are no entities whom see crypto as other means (like I say, its just that I personally dont know anyone), but bottom line is we would not be having this discussion if the FIAT currency value of bitcoin was not increasing at such a rapid rate.
Still all about di Dollaz!!
Similar threads
