Why Bitcon has value, an austrian school prespective

Discussion in 'Economics' started by Daal, Dec 6, 2020.

  1. Just because someone does something other than the intended purpose and does not do what is beneficial does not defeat the idea and concept. There are tons of stupid people out there who abuse medication, it does not defeat the original intent of most medication, which is to address a certain ailment. Just because someone speculates does not change how companies are valued. And re fiat currency, the only reason anyone works for fiat is because there is trust in its stability and buying power. Even if you could pay taxes with bitcoin or buy stuff, if the trust is not there in its stability and backing of a powerful body behind it then momentary buying power does not equal future buying power. Big difference.

     
    #11     Dec 7, 2020
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  2. Daal

    Daal

    Yes there is no limit to the creation of new blockchains/coins. Just like there is no limit in the creation of uber-like software, or facebook competitors. That doesnt mean that the new software or websites are going to get people participating on it in any meaningful way, or that they are going to be relevant at all. Network effects are hard to achieve, bitcoin is doing that, good luck doing that with a random new shitcoin
     
    #12     Dec 7, 2020
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  3. MrMuppet

    MrMuppet

    now don't you feel stupid?
     
    #13     Dec 7, 2020
  4. jys78

    jys78

    Did someone who bought sub 1K, sold @ 20K and purchased material goods with their profits extract any value from BTC?
     
    #14     Dec 7, 2020
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  5. longshort

    longshort

    No because for someone to sell BTC at $20K, another party needs to buy. The counterparty could have bought the material goods instead, all else being equal. Value wasn't extracted from BTC but siphoned from someone else.

    Real goods/services can only be created through production, anything else is (re)distribution without an aggregate effect on society's wealth.
     
    #15     Dec 7, 2020
  6. Trader Curt

    Trader Curt

    Sounds good brah. But why tell us about it? Try telling the billions of people on this earth it has no value if you really want to make a difference. Because it's very odvious that you know something that everyone else doesn't.

    Go tell everyone that Bitcoin is worthless, I'm sure they will throw it away once they hear it from you.:D
     
    #16     Dec 7, 2020
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  7. MrMuppet

    MrMuppet

    These ET brainlets.

    If they just did a little digging, they would figure out that crypto and especially BTC covers a huge global inefficiency and that is not going to stop. I wonder why nobody asks why the synthetic BTC dollar as well as stable coin yield is double digits.

    And they still waffle about some economy 101 that has nothing to do what's actually going on.
     
    #17     Dec 7, 2020
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  8. Trader Curt

    Trader Curt

    Well one could argue that anything digital has no value, like a logo. But a logo does have value because when everyone sees it, they know it means business, and it brings in more business since everyone knows that someone is serious about their business. But yet, you could say it has no intrinsic value.

    What is Bitcoin? Bitcoin is just a number in your digital wallet. But that number represents the amount of worth you have in it, same as a bank account number. Which to everyone else might be worthless, but to yourself has the most value.

    Times have changed, this is a new era, either learn to adapt to changes or get left in the dust. End of story
     
    #18     Dec 7, 2020
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  9. MrMuppet

    MrMuppet

    That's not what I meant.

    If someone pays 10% p.a. for a loan in stablecoins, what does these stablecoins help him to do? Where does he have an advantage from paying 10% p.a. or which costs are higher than 10% p.a. so that he decides to save by transacting in crypto?

    And I'm not talking fishy business here...illegal transactions are less than 1% of total volume today (coming from ~30% in 2017) which is even less than illegal transactions in USD (est. 2%-5%).

    All this value discussion is bullshit. When something is useless it dies, simple as that. But especially Bitcoin is used a lot.
    We are not talking storage of value and other idiotic theories here. Bitcoin transactions range from 1B to 5B USD per day and these are not speculative trades.

    It's up to you guys to figure out the why, what and how.

    Just do all of us a favour and stop spreading uneducated BS. That helps nobody and you guys just make fools of yourselves
     
    #19     Dec 7, 2020
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  10. Trader Curt

    Trader Curt

    I don't know, that would be none of my business, or yours either.

    That's because Bitcoin is a currency, and it is used to either buy or sell or donate money, the same way Fiat money is used. So the 1B to 5B you speak of has to do with people buying or selling or donating money. You know, same way fiat money is used.
     
    Last edited: Dec 7, 2020
    #20     Dec 7, 2020