Cryptos are like diamonds

Discussion in 'Crypto Assets' started by Pekelo, Apr 8, 2021.

  1. Pekelo

    Pekelo

    Yeap, the analogy is perfect, assuming you actually know something about the diamond business. Let's see how it fits:

    1. Diamonds/cryptos are not rare.

    I know, we were told about diamond's scarcity, but you should see De Beers diamond vault, full of the good stuff, but withheld from the market creating artificial scarcity. The crypto equivalent is the max. ever mined coins and the HOLD movement.

    2. Diamond/cryptos are not really valuable.

    Try to sell a used diamond at a pawn shop and see if you get 30% of the value what you paid for as new. The same with cryptos, there is no logical reason why they should be extra valuable, except some people think they are. Time will tell, how long the silliness lasts. Newer, with better feature cryptos are still way less valuable than good, ol' stinky bitcoin.

    3. Diamonds don't need to be mined (anymore). Yeap, there are lab grown diamonds and they are even cheaper than the real thing. Also no blood attached to it. The crypto equivalent is the fork. Your precious crypto can be forked on any given Sunday (or Tuesday if you prefer) and make another one just as good as the original copy.

    4. Cheaper but similar function things exist, like cubic zirconia. Sure it can not cut glass, but it is just as shiny in a ring or in a necklace. The crypto equivalent is new, but better featured cryptos than the original grandpa bitcoin.

    5. Most of the claims about diamond/cryptos are simply untrue (aka lies).

    Not valuable, not rare, not unique, not irreplaceable. Those are the lies about diamonds. Not good as currency, not cheap transaction, not rare, not unique, not even fast, not scalable, etc. Those are the original claims about bitcoin proven to be untrue by the passage of time and real world usage.

    I am sure there are more similarities, but these will do, so say after me:

    Cryptos are like Diamonds!!! :)
     
    Last edited: Apr 8, 2021
    cruisecontrol likes this.
  2. tsznecki

    tsznecki

    @Pekelo the gay bear ^ has been short BTC since 10K.
     
    Sprout, AbbotAle, zghorner and 2 others like this.
  3. RedDuke

    RedDuke

    Very good analogy. Many people just do not realize how much are in the vaults like you said.

    the only reason why cryptos got to where they are now is Tethers. Wish I was not so stubborn about them. Now even a billion issued every few days or saw can not push it higher without fiat.
     
  4. AbbotAle

    AbbotAle

    Why don't you fork BTC over the weekend Pek, then come back here in a month and tell us how your new coin is doing.
     
  5. AbbotAle

    AbbotAle

    Can a diamond transfer value over the internet without the need to trust a 3rd party?

    Can a diamond be used to bootstrap a new digital economy?

    Can a diamond be used to generate some spectacular yields in a world of ZIRP?

    How many more diamonds (real or manufactured) are there in the world? How many Bitcoins are there, and can the supply ever change?
     
  6. cesfx

    cesfx

    How many people died mining BTC?

    Whenever I see someone wearing or selling diamonds, my respect for the person goes below zero.

    Screw diamonds, bitcoins are better.
     
    Sprout likes this.
  7. AbbotAle

    AbbotAle

    Stubborness and trading/investing is a lethal combination Duke.

    You for example are a computer scientist I believe, so it's likely you'd have heard of Bitcoin years ago, and would have had an advantage in understanding it and would have been mightly impressed with Satoshi solving the Byzantine Generals Problem. But your stubborness got in the way from potentially buying.

    It's still not too late...
     
    Last edited: Apr 9, 2021
  8. AbbotAle

    AbbotAle

    None of course but no doubt we'll be heading that FUD way soon enough.

    Tether FUD seems dead so the herd have all pivoted to Energy FUD. Give it a few months and they'll probably come up with murdering FUD.

    Bitcoin kills!

    Buy Bitcoin and you have blood on your hands! If so, the FUDers will probably implode if you have a diamond on your finger AND buy Bitcoin :D, and then you will really have blood on your hands!
     
  9. Pekelo

    Pekelo

    Oh I did. It is just much cheaper (like cubic zirconium) than the real thing. But much cheaper transactions.

    See? Perfect analogy! :)
     
  10. Pekelo

    Pekelo

    Manufactured? Limitless, just like cryptos! Perfect analogy! :)
     
    #10     Apr 9, 2021