New study detects lottery-like behavior in cryptocurrency markets

Post by lostmsu » Thu, Apr 01, 2021, 7:18 PM UTC

Daishiman wrote: post #64

young_unixer wrote: post #38

To the anti-BTC crowd: Yes, the current price of crypto is based on speculation, not in their current utility. But there also was a dotcom bubble 20 years ago. Does that mean that the World Wide Web is useless? Cryptocurrencies will be highly useful as stores of value and maybe as currency. We're just not there yet. This is just the Gartner hype cycle, with the addition that for the first time we have a global market…

There is absolutely no evidence backing this. The utility of the WWW was eminently visible to experts even before it existed. I have yet to meet an expert in equivalent fields who complains that the core issues in finance can be solved by cryptocurrencies. In fact I don't really see any issues that can be solved by crypto. Trust issues? Crypto users are as likely if not more to be scammed and the technology itself do…

Post by tshaddox » Thu, Apr 01, 2021, 7:22 PM UTC

cool_dude85 wrote: post #82

tshaddox wrote: post #77

Earlier quoted context omitted.

> In my experience the primary goal for most crypto holders is to be a part of a new elite. This part doesn’t sound very different from investing in startups, where everyone is hoping to get in really early on the next unicorn. Seems to me the main difference is that this kind of “investment” is generally only available to people who are already “elite” in some sense (i.e. sufficiently wealthy and/or connected).

I almost hate to say it, but compare the benefit of silicon valley startups to broader society and the benefit of bitcoin to broader society. So, either way, lucky duckies get mega rich, richer than anyone should be, but at least the SV stuff usually actually does something.

Post by gher-shyu3i » Thu, Apr 01, 2021, 7:23 PM UTC

endisneigh wrote: post #27

It makes sense. In my experience the primary goal for most crypto holders is to be a part of a new elite. This is why the most popular currencies have a fixed supply. That way, if they're popular earlier adopters get to be a part of the elite. With such a premise it makes sense to treat crypto like the lottery as the gain/loss likelihood is very similar to say, Mega Millions. I do see value in a crypto that's pinned…

Post by cmoscoso » Thu, Apr 01, 2021, 7:24 PM UTC

matthias509 wrote: post #43

toolz wrote: post #26

Earlier quoted context omitted.

maybe for developed nations - that doesn't represent much of the world

So high tech crypto is the solution to making trading with the developing world easier? Aren’t these the same sorts of places which struggle to have reliable electricity, let alone internet access?

Post by 35fbe7d3d5b9 » Thu, Apr 01, 2021, 7:24 PM UTC

bko wrote: post #52

endisneigh wrote: post #27

It makes sense. In my experience the primary goal for most crypto holders is to be a part of a new elite. This is why the most popular currencies have a fixed supply. That way, if they're popular earlier adopters get to be a part of the elite. With such a premise it makes sense to treat crypto like the lottery as the gain/loss likelihood is very similar to say, Mega Millions. I do see value in a crypto that's pinned…

> I do see value in a crypto that's pinned at a weighted average of every single currencies' worldwide weight, but it's a perfectly stable currency If every government in the world is printing money like crazy, how is this "stable". In the US, 23% of the money supply was created in the last year, with no visible inflation (excluding asset prices, home, energy, etc). God knows what it'll be 5 years from now What has b…