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We need something to invest in. Cryptocurrency is something, therefore we should invest in it.
by rland 4y ago
We need something to invest in. Cryptocurrency is something, therefore we should invest in it.
- throw8383833jj 4y agoThe point is bitcoin supply is limited. Fiat is not.
- kristjansson 4y agoIf there is anything to learn from LUNA/UST, it's that the quantity of tokens in circulation has basically no bearing on the the _supply_ of tokens offered for sale at any given price.
- ProjectArcturis 4y agoBy that logic, the supply of 1996 Toyota Corollas is also limited, in fact even more limited than Bitcoin's. Should we therefore invest in 1996 Toyota Corollas?
- ekianjo 4y agoAre you trying to make bad analogies?
- lottin 4y agoIt's a good analogy. Price is a function of supply and demand. I don't understand why bitcoiners struggle so much with price theory.
- ekianjo 4y ago> good analogy Sure, comparing and old physical asset that deprecate over time with a pure digital asset built on a blockchain makes a lot of sense. Currencies are way easier to trade than physical goods. Everything is a question of supply and demand, it does not mean it's valid to compare every goods to another on the market.
- lottin 4y agoWell, if you have a theory of prices that only applies to one good and fails when applied to any other good, it means your theory is rubbish. This is why we must check whether the proposed theory works when applied to goods other than bitcoin. It's not a comparison. Although, there's nothing wrong with comparing different goods either.
- oarsinsync 4y agoOr the good being compared to isn’t an equivalent. The Bitcoin you hold is exactly the same as the Bitcoin the GP holds. The 1996 Toyota you hold is very different to the 1996 Toyota I hold. The goods are not interchangeable. They are not commodities.
- saalweachter 4y agoEh, once you stop caring about a functional 1996 Toyota Corolla the difference becomes extremely small. You can basically reduce the automobile to its VIN - that's how it's referred to legally. Whoever owns the number owns the "car". Only 2.1 million 1996 Toyota Corolla VINs were ever minted; there will never be another. If 10% of the world assets were held as Toyota Corolla VINs, that would give us a value target for a VIN of about 14 million dollars per VIN; I think with those assumptions it's quite reasonable to value a Toyota Corolla at 1 million USD, regardless of condition.
- oarsinsync 4y agoSo how do I transfer VINs between owners, that’s somehow different to any other (artificially) scarce asset? Whats the risk of counterfeiting with VINs? What if I don’t want a whole VIN but a fraction of one? Bitcoin having any value is absolutely a shared delusion. But it at least has other properties that differentiate it from other shared delusions.
- xtracto 4y agoShit, the supply of Action Comics #1 was also limited. I argue that it would had been wise to invest in those ones.
- ProjectArcturis 4y agoIt's almost as if scarcity alone is not sufficient for something to go up in value.
- osigurdson 4y agoBitcoin is limited until a sufficient number of stakeholders decide that the number should increase. While it may be true that this will never happen, it isn't bounded by physics or math.