Bitcoin hits $20000 within three years-Ronnie Moas predicts

I understand cryptocurrencies are "all the rage".

But throughout history, money and stores of value have been backed by something of intrinsic value... like gold, land, other commodities. Even the fiat US Dollar is backed by the US government (whatever that turns out to be worth).

Bitcoin and others are backed only by "players" willing to bid up the price. Seems more akin to tulips than anything else.

Fundamentally, I don't get it.
 
just21 said:
What would you do if you lived in Venezuela?
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I can see that choice... at least hope for the crypto (though still backed by "nothing") and virtually no hope for Venezualan money. Even so... with the Venezuela currency so trashed, how many of those people have enough buying power to invest even a fraction of a bitcoin? Venezuela notwithstanding, what about the rest of the world?
 
Venezuelans are doing bitcoin mining as they have very low cost electricity but the police confiscate the rigs if they hear about it. Useful in China to evade capital controls. Useful in Japan as they have negative interest rates and quantitative easing. The US dollar and other paper currencies have lost between 80 and 98% of its purchasing power since 1971.
 
just21 said:
Venezuelans are doing bitcoin mining as they have very low cost electricity but the police confiscate the rigs if they hear about it. Useful in China to evade capital controls. Useful in Japan as they have negative interest rates and quantitative easing. The US dollar and other paper currencies have lost between 80 and 98% of its purchasing power since 1971.
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Still doesn't argue the "intrinsic worth" of bitcoin.
 
just21 said:
What is the intrinsic worth of the Yen if you have to pay 0.1% to hold it?
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The "yield" or negative yield is not the issue. The intrinsic worth is whatever a Yen will buy... guaranteed by the Japanese Government.

Your comment is akin to "what is the intrinsic worth of gold when you have to pay storage fees and insurance".

I take it with your handle, that you are a young person?
 
Scataphagos said:
I take it with your handle, that you are a young person?
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If only! The japanese government are telling you to spend or invest by having a negative interest rate. The 2% inflation target is also a signal that the Yen will not hold it's purchasing power.
 
just21 said:
If only! The japanese government are telling you to spend or invest by having a negative interest rate. The 2% inflation target is also a signal that the Yen will not hold it's purchasing power.
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Yes... just like the US Government and our Fed. Still, the Yen has intrinsic value based upon Japanese government guarantee... however fleeting and debasing over time. Cryptos have none of that.
 
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