Ask HN: Why crypto is rising so fast when its not creating value?

Post by thoughtstheseus » Sun, Nov 07, 2021, 2:25 AM UTC

SubiculumCode wrote: post #18

58x14 wrote: post #4

We’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

Post by mdorazio » Sun, Nov 07, 2021, 2:28 AM UTC

philosopher1234 wrote: post #14

MisterBiggs wrote: post #13

Speculation 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.

Post by philosopher1234 » Sun, Nov 07, 2021, 2:30 AM UTC

mdorazio wrote: post #23

philosopher1234 wrote: post #14

Earlier 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.

"Want" has nothing to do with it. If people are willing to pay money for a service, that service is by definition valuable. Many thousands of people are willing to pay money in the form of gas fees to transact on the Ethereum network, so the network must be providing value. Whether you think the endpoints (assets/coins/whatever) themselves have value is irrelevant. I have a feeling that whatever definition you're usi…

Post by philosopher1234 » Sun, Nov 07, 2021, 2:32 AM UTC

MisterBiggs wrote: post #26

philosopher1234 wrote: post #14

Earlier 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.

Fair point. Not everything happening on smart contract platforms is good and some of it may even be bad. The post was asking if value is created and I think that my argument that the market price of doing things in the ecosystem having a real world cost translates to it having value is correct. There are plenty of insanely wasteful and horrible companies that create real value in the world.

Post by DennisP » Sun, Nov 07, 2021, 2:33 AM UTC

philosopher1234 wrote: post #14

MisterBiggs wrote: post #13

Speculation 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.