Because it's clear from anybody who knows the details about it that crypto is the basis for the next-generation of the financial system.
Ask HN: Why crypto is rising so fast when its not creating value?
11–20 of 153 posts
Re: Ask HN: Why crypto is rising so fast when its not creating value?
#12Cryptocurrency is backed by the same thing as any other currency: popularity and consumer confidence. Whether such sentiments are "warranted" or "deserved" is a subjective matter, but that is irrelevant to determining its economic influence - enough people have invested in it for network effects to all but guarantee its continued relevance.
Re: Ask HN: Why crypto is rising so fast when its not creating value?
#13Speculation of meme coins has dominated the news recently but there are some amazing coins with real utility. Ethereum tends to get viewed negatively because it can become so insanely expensive to do anything on the chain but in reality that means that the market is willing to pay for those transactions to occur which suggests that there is some real utility to the ecosystem that has real world value.
Re: Ask HN: Why crypto is rising so fast when its not creating value?
#14Speculation of meme coins has dominated the news recently but there are some amazing coins with real utility. Ethereum tends to get viewed negatively because it can become so insanely expensive to do anything on the chain but in reality that means that the market is willing to pay for those transactions to occur which suggests that there is some real utility to the ecosystem that has real world value.
It’s a fallacy to think that just because people want to do something it is valuable. People have wanted to do some insanely wasteful or horrible things in the past.
Re: Ask HN: Why crypto is rising so fast when its not creating value?
#15Speculation of meme coins has dominated the news recently but there are some amazing coins with real utility. Ethereum tends to get viewed negatively because it can become so insanely expensive to do anything on the chain but in reality that means that the market is willing to pay for those transactions to occur which suggests that there is some real utility to the ecosystem that has real world value.
Such as?
Re: Ask HN: Why crypto is rising so fast when its not creating value?
#16Speculation of meme coins has dominated the news recently but there are some amazing coins with real utility. Ethereum tends to get viewed negatively because it can become so insanely expensive to do anything on the chain but in reality that means that the market is willing to pay for those transactions to occur which suggests that there is some real utility to the ecosystem that has real world value.
It’s a fallacy to think that just because people want to do something it is valuable. People have wanted to do some insanely wasteful or horrible things in the past.
We have a whole economic system where price is a response to demand and scarcity. Most of economic output has no fundamental relation to the basics of survival, as to purely exist to satisfy whimsical desires.
Re: Ask HN: Why crypto is rising so fast when its not creating value?
#17Earlier quoted context omitted.
It’s a fallacy to think that just because people want to do something it is valuable. People have wanted to do some insanely wasteful or horrible things in the past.
We have a whole economic system where price is a response to demand and scarcity. Most of economic output has no fundamental relation to the basics of survival, as to purely exist to satisfy whimsical desires.
Yes, and that is not ideal, nor evidence of value.
Re: Ask HN: Why crypto is rising so fast when its not creating value?
#18We’re in a hyperinflationary period. Loans are extremely inexpensive, cash is cheap. I suspect the majority of influx in crypto is due to an abundance of fiat. With that said, there’s quite a lot going for Ethereum and defi as a sector. Major tech players like Google are funding many web3 startups. Facebook is fully embracing the “metaverse,” whatever the f** that is. Tesla is trading at some ridiculous multiple of e…
hyperinflation is hyperbole.
Our inflation: 5% since last year.
Hyper inflation: ~50% per month https://www.investopedia.com/terms/h/hyperinflation.asp
Re: Ask HN: Why crypto is rising so fast when its not creating value?
#19Cryptocurrency is backed by the same thing as any other currency: popularity and consumer confidence. Whether such sentiments are "warranted" or "deserved" is a subjective matter, but that is irrelevant to determining its economic influence - enough people have invested in it for network effects to all but guarantee its continued relevance.
The one exception is when you go to pay your taxes.
Re: Ask HN: Why crypto is rising so fast when its not creating value?
#20Earlier quoted context omitted.
We have a whole economic system where price is a response to demand and scarcity. Most of economic output has no fundamental relation to the basics of survival, as to purely exist to satisfy whimsical desires.
Yes, and that is not ideal, nor evidence of value.
If someone was willing to pay for it, it had value to them. That's value.