Nothing can defy gravity forever. The law of gravity in this context is that something that doesn't pay you anything in the future, isn't worth anything in the present. You could claim the same for fiat currencies such as USD, but that is not even true. I can't put it in a savings account and get paid for it.
Comp Sci prof who doesn't think much of crypto
- Thread starter tango29
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You can't put a gold coin in your savings account either. However, you can buy a gold coin from a coin store, keep it at your house and sell it when the price goes up back to that same coin store or another.
But you have to find someone to buy it from you. New money comes in to pay the existing investors. That has to come from someone else. Bitcoin doesn't have any income.
That fits the deifinition of a ponzi.
The thing is that gold has a value as a commodity. there is a demand for it in jewelry and electronic. where is the demand for bitcoin?
Part of what I thought the value of crypto was that it could be used as a currency, but how do you do that if it continues to fluctuate wildly? Can a business really afford to take payment in crypto and see it drop a few thousand in value, or more? Or the guy who bought pizza with his crypto, do you buy something and then watch it skyrocket.
When will it stabilize or will it? An investment in hopes of an increase, I guess. That is a choice someone can make, but right now as a medium of exchange a business would have to be nuts to take crypto. They have inventory costs, etc. that they can't afford to take even short-term losses on it while waiting and hoping for it to come back.
When will it stabilize or will it? An investment in hopes of an increase, I guess. That is a choice someone can make, but right now as a medium of exchange a business would have to be nuts to take crypto. They have inventory costs, etc. that they can't afford to take even short-term losses on it while waiting and hoping for it to come back.
No you don't. It's just like if you bought 100 shares of Microsoft on a stock exchange. The price is the current market price. You can sell at market price, it is filled by the exchange, you don't need to start calling around and asking people if they want to buy your Bitcoin.
Not exactly. Commodities don't have income either. I still think cryptos are at least Ponzi-adjacent, but not for that reason.
I'm well aware of that. Where is the demand for bitcoin going to come from? Someone who believes the price is going to increase.
If you buy your bitcoin from another investor the money stays in the system. if you are going to make a profit you (thru an exchange who takes a small cut whether you make a profit or not) have to find someone to pay you a higher price. The only way you can make money is if someone else believes it is a good investment. New money coming in to pay the investor.
The miners on the other hand take money out of the system. Here's a digital token, thanks for the cash, goodluck finding a greater fool.
Commodities have an inherent value in that there is an end use.
deaddog has been (playing) stupid on this concept of trading when it comes to Bitcoin
Bitcoin has over $20B of daily trading volume on worldwide exchanges, but he's too dumb to understand it, somehow
Good luck to you, deaddog will waste your time spinning the simplest things around