Stupid question about Cryptocurrency

Discussion in 'Crypto Assets' started by traderjo, Dec 17, 2017.

  1. Pekelo

    Pekelo

    Oh, boy, let's educate...

    1. OK,instead of not worth anything how about it is worth 95% less what it is valued at? This can be a true statement we both agree on and still close to the original statement.

    2. It isn't a storage of value more than any Ponzi in their rally phase. There is no guarantee about its value 5 years from now. With a storage of value we have an app. idea at least.

    3. Gold has plenty of practical purposes (industrial, jewelry) although it doesn't derive its value from those.

    4. The citizenry is forced to use the government's money, no such a pressure with cryptos. Analogy is invalid.
     
    #11     Dec 18, 2017
  2. tommo

    tommo

    1. OK,instead of not worth anything how about it is worth 95% less what it is valued at? This can be a true statement we both agree on and still close to the original statement.

    Ok sure, if you want to just pick arbitrary figures, how about the stock market is worth 95% of its current value? Markets are worth what people pay for it.

    2. It isn't a storage of value more than any Ponzi in their rally phase. There is no guarantee about its value 5 years from now. With a storage of value we have an app. idea at least.

    There is no guarantee about any assets value.

    3. Gold has plenty of practical purposes (industrial, jewelry) although it doesn't derive its value from those.

    Ok try and buy your children clothes and food by shaving off a bit of gold into a shop keepers hands. BTC is arguably more fungible than gold already. At least there are some shops that take it and many more will over the years

    4. The citizenry is forced to use the government's money, no such a pressure with cryptos. Analogy is invalid

    Citizenry is not forced to use gold either, yet is still hailed as a safe haven that would replace money in an emergency, analogy is invalid. When despot countries fail people start using the dollar in those places not the government backed currency of that nation. People use whatever has perceived value and is liquid in order to pay for things
     
    #12     Dec 18, 2017
    NeoTrader likes this.
  3. Pekelo

    Pekelo

    You seem to be angry, try to chill a bit. :)

    1. Instead of markets, let's use stocks or assets here. My point was, that cryptos can have intrinsic value just MUCH LESS than its current evaluations. So they are not worth nothing, they are just worth much less. And going back to your argument, yes, sometimes certain markets or stocks get over heated and over valued. Then comes the correction...

    2. Not true. A US government bond is as close to safe store of value as anything.

    3. I didn't argue BTC's fungibility, I argued gold's practical purposes.

    4. The citizenry don't use gold as payment. Get on with the times already! Calling it a save heaven is just good PR, like diamond is a girl's best friend. Advertisement, not necessary true.
     
    #13     Dec 18, 2017
  4. tommo

    tommo

    You seem to be angry, try to chill a bit. :)
    Im completely chilled, just helpfully pointing out your flawed logic :)


    1. Instead of markets, let's use stocks or assets here. My point was, that cryptos can have intrinsic value just MUCH LESS than its current evaluations. So they are not worth nothing, they are just worth much less. And going back to your argument, yes, sometimes certain markets or stocks get over heated and over valued. Then comes the correction...

    Again, your valuation metrics of BTC can be applied to any other market. They are no different. But as I originally stated I am confident the growth rate they have had for the past few years is totally unsustainable. But doesn't mean the asset is worthless or not likely to still be worth far more in 5, 10 years.


    2. Not true. A US government bond is as close to safe store of value as anything.

    Not true, a 3% yield is worth very little if inflation hits 10%

    3. I didn't argue BTC's fungibility, I argued gold's practical purposes.

    Fungibility and practical purposes largely the same. Which is more useful? Having a bar of gold that can't be traded for any day to day purchases but could be used in a microprocessor or a ladies necklace. Or something stored digitally that can be moved anywhere in the world in a matter of seconds and can purchase things I need. Personally, I would take the latter.

    4. The citizenry don't use gold as payment. Get on with the times already! Calling it a save heaven is just good PR, like diamond is a girl's best friend. Advertisement, not necessary true

    That's exactly the point I was making. However, a lot of people treat it as a safe haven and have done for centuries
     
    #14     Dec 18, 2017
  5. Pekelo

    Pekelo

    OK, then it is your reading comprehension:

    1. That is what I said!!! Not worthless, just very much less value. What are you arguing about?
    2. If. But still better then losing 30-50% in value. The point was that it is rather predictable unlike a crypto.
    4. Ok let's just agree that we agree on a lots of things. :)
     
    #15     Dec 18, 2017
  6. ElCubano

    ElCubano


    ART is a Ponzi scheme then. Who in their right mind would pay $150,000,000 for oil on a canvas? Oh yeah those that like to sell it for $250,000,000 a couple of years later. :D
     
    #16     Dec 18, 2017
    Illini Trader and johnarb like this.
  7. just21

    just21

    What asset class is a store of value?
     
    #17     Dec 18, 2017
  8. Pekelo

    Pekelo

    Art is a bigger idiot game, not to mention there could be emotional values. Usually people don't have emotional connection to their gold bars. It is also a bragging game. Real art collectors buy them from criminals and keep their prized collection to themselves. :)

    Do I really have to dig up the articles when art collectors LOST money?
     
    #18     Dec 18, 2017
  9. Pekelo

    Pekelo

    #19     Dec 18, 2017
  10. The world is full of idiots, look around, look in the mirror.

    And the biggest idiots are those that expect the other idiots to behave like they aren't idiots.

    There ya go, all explained in two succinct lines.
     
    #20     Dec 18, 2017