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Bitcoin's Rally Masks Uncomfortable Fact: Almost Nobody Uses It

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11–20 of 99 posts

Re: Bitcoin's Rally Masks Uncomfortable Fact: Almost Nobody Uses It

#11
post #4

Earlier quoted context omitted.

> What else should you do with a store of value that you expect to appreciate in price because it has inflation going to 0? Do you expect to increase in price solely because there are a limited amount? There are many things which have that property, but are not good stores of value. Your ability to sell it later for more money is based on continuing demand. Unless there's some other use case, where is that demand goi…

This is beating a dead horse and the typical argument, but the same can be said for gold. Its "intrinsic value" in terms of practical application is far lower than the market cost given the plentiful substitutes for high current / low heat transmission applications. I really do wonder why Bloomberg hates Bitcoing. If you read through a history of their articles, they REALLY hate it.

Gold’s special place in the western canon is really just a cultural artifact. Not only are there a variety of metals that could take its place as an investment vehicle (silver, platinum, and rhodium among others), but historically a variety of metals were used for currencies and transactions. Bronze, brass, lead, and salt were all once used as currency, but have long since just become “base” metals.

On the opposite end of the spectrum you’ve got South American cultures that loved Gold for purely decorative purposes, but basically never considered it money. These cultures largely traded using barter or using a specific agricultural product as the unit of account, such as cacao beans.

Re: Bitcoin's Rally Masks Uncomfortable Fact: Almost Nobody Uses It

#12
post #4

There is a lot of work done in analyzing holding patterns. Would probably be interesting to see comparison to usage and price of gold as a store of value. For me, buying and holding seems to be legitimate usage. I guess that would count as "speculating". What else should you do with a store of value that you expect to appreciate in price because it has inflation going to 0?

> What else should you do with a store of value that you expect to appreciate in price because it has inflation going to 0? Do you expect to increase in price solely because there are a limited amount? There are many things which have that property, but are not good stores of value. Your ability to sell it later for more money is based on continuing demand. Unless there's some other use case, where is that demand goi…

Why not create a cryptocurrency with a single coin? It should have infinite value :)

Re: Bitcoin's Rally Masks Uncomfortable Fact: Almost Nobody Uses It

#13
post #9

Earlier quoted context omitted.

This is beating a dead horse and the typical argument, but the same can be said for gold. Its "intrinsic value" in terms of practical application is far lower than the market cost given the plentiful substitutes for high current / low heat transmission applications. I really do wonder why Bloomberg hates Bitcoing. If you read through a history of their articles, they REALLY hate it.

I haven't mentioned intrinsic value once in my post, I agree it's not especially useful to talk about. I'm asking why BTC value should keep going up without some sort of demand beyond people buying because they expect it to go up? Or do you think that's enough?

If you can answer that for gold & silver, then there is a point in talking about this. If not, the answer is "It's a secure, easily transferable, deflationary store of value. Examples of it being used - Venezuela. Gold is not an option due to crime. The local currency is not an option due to massive inflation.

Re: Bitcoin's Rally Masks Uncomfortable Fact: Almost Nobody Uses It

#15
post #4

Earlier quoted context omitted.

> What else should you do with a store of value that you expect to appreciate in price because it has inflation going to 0? Do you expect to increase in price solely because there are a limited amount? There are many things which have that property, but are not good stores of value. Your ability to sell it later for more money is based on continuing demand. Unless there's some other use case, where is that demand goi…

This is beating a dead horse and the typical argument, but the same can be said for gold. Its "intrinsic value" in terms of practical application is far lower than the market cost given the plentiful substitutes for high current / low heat transmission applications. I really do wonder why Bloomberg hates Bitcoing. If you read through a history of their articles, they REALLY hate it.

This reminds me of this funny video about "gold": https://www.youtube.com/watch?v=YHjYt6Jm5j8

Re: Bitcoin's Rally Masks Uncomfortable Fact: Almost Nobody Uses It

#16

Earlier quoted context omitted.

"My toenail clippings are limited in quantity, but valueless." Indistinguishable from other toe-nail clippings, for which supply is not limited. Not easy to transport internationally quickly.

Bitcoin is indistinguishable from any of its various forks. Cryptocurrency tokens as a class are not rare.

It's distinguishable by being the first and most heavily invested in, as well as having the most infrastructure around it, especially institutional. Keep downvoting literally because you don't like facts.

Re: Bitcoin's Rally Masks Uncomfortable Fact: Almost Nobody Uses It

#17
post #9

Earlier quoted context omitted.

I haven't mentioned intrinsic value once in my post, I agree it's not especially useful to talk about. I'm asking why BTC value should keep going up without some sort of demand beyond people buying because they expect it to go up? Or do you think that's enough?

If you can answer that for gold & silver, then there is a point in talking about this. If not, the answer is "It's a secure, easily transferable, deflationary store of value. Examples of it being used - Venezuela. Gold is not an option due to crime. The local currency is not an option due to massive inflation.

I see Venezuela cited a lot as an example of Bitcoin adoption, but all I can find about its use is people mining as a way to arbitrage the subsidized electricity prices they get. Is there any evidence of widespread use of Bitcoin there as opposed to, say, USD?

Re: Bitcoin's Rally Masks Uncomfortable Fact: Almost Nobody Uses It

#18
post #9

Earlier quoted context omitted.

I haven't mentioned intrinsic value once in my post, I agree it's not especially useful to talk about. I'm asking why BTC value should keep going up without some sort of demand beyond people buying because they expect it to go up? Or do you think that's enough?

If you can answer that for gold & silver, then there is a point in talking about this. If not, the answer is "It's a secure, easily transferable, deflationary store of value. Examples of it being used - Venezuela. Gold is not an option due to crime. The local currency is not an option due to massive inflation.

> If you can answer that for gold & silver, then there is a point in talking about this.

You've had an answer for gold and silver and you've just said it's a store of value because it's a store of value. That's circular logic.

Re: Bitcoin's Rally Masks Uncomfortable Fact: Almost Nobody Uses It

#19

Earlier quoted context omitted.

"My toenail clippings are limited in quantity, but valueless." Indistinguishable from other toe-nail clippings, for which supply is not limited. Not easy to transport internationally quickly.

Bitcoin is indistinguishable from any of its various forks. Cryptocurrency tokens as a class are not rare.

True, I've been saying the same for a long time. However, forks are extremely susceptible to 50% attacks, the more so the more computing power concentrates on bitcoin. Anyway, the prices of all main cryptocurrencies go up and down together with very similar trends, so I guess the crypto inflation is already factored in the current price.

Re: Bitcoin's Rally Masks Uncomfortable Fact: Almost Nobody Uses It

#20

People trading something back and forth is a form of usage. they are using it. The author just doesn't like what they are using it for.

BitCoin was supposed to transform the way people buy things. Instead it's mainly transformed the way people buy BitCoin. That's a legitimate criticism.
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