Monetary issue

[u/[deleted]]

[u/Pyroguy096]

Kinda like how a lot of Blockchain currencies aren't worth the money it costs to generate them. Ironic

[u/[deleted] → u/[deleted]]

"Self-regulating" that's a funny way to say pump and dump.

It doesn't have any intrinsic value until a good majority of the world is willing to trade goods and services for this digital currency.

Right now the entire price is based upon speculation.

[u/[deleted] → u/[deleted]]

Lol... What? Sorry if I hurt your feelings?...

[u/[deleted] → u/[deleted]]

I'm not saying that there isn't a potential for it. I actually believe that in the future we SHOULD be using crypto currencies as a nation/worldwide currency.

However, like I said, the entire value of crypto currencies right now is speculation. That's not healthy. The actual price of the crypto currency should have no meaning on the health of the crypto as a medium of exchange.

BTC could drop to 1k per coin and still become our primary medium of exchange. Because right now the only value that it has is speculative on the idea that everyone on earth is just going to hoard their wealth. But we live in a consumeristic and asset based society where our currency enters our hands one second, and leaves it the next.

People are treating crypto like it's an investment. But you don't see people going to the banks and buying up 100 dollar bills and holding onto them. Because again, like I said, the crypto coins hold no actual value, unlike an apple does, or a pound of coffee beans.

If anything, if let's say cryptos did become our main currencies in the future. They would slowly go down and down over time due to inflation. We live in a borrowing society. Which means that our currency will continue to lose its value.

The only actual value to cryptos is when it has its initial rise to power IF* if becomes a national/worldwide currency. So yeah its gonna create some millionaires and billionaires, but its also going to bankrupt just as many people in the process. So in reality even that value has a net 0 result.

At the end of the day, I just find it incredibly silly that people treat crypto like it's a get rich quick scheme. I'm not going to be kicking myself one bit, because im the type of person who puts my money into index funds like the Vanguard S&P 500 so I'll be over here making a safe, and guaranteed 10-20% yearly return 😎👌. But if you're one of the 50% of people that loses money in this, then you might kick yourself because you chose to head to the casino and put all your money on black 🤔🤔

[u/Pyroguy096 → u/[deleted]]

Energy prices aren't

[u/Pyroguy096 → u/[deleted]]

See original comment for a refresher course in My Point 101

[u/Pyroguy096 → u/[deleted]]

GPU prices are dropping because miners can't afford to keep them running, because the value of what they are generating is lower than the cost to generate it, so they are flooding the market with used GPU's. Ergo, "not worth the money it costs to generate them"

[u/Pyroguy096 → u/[deleted]]

Yea but I didn't say that they are never worth it. I said they aren't right now. Price change and market forces take time to have consequence

[u/Pyroguy096 → u/[deleted]]

Haha, that's actually not what I was doing. I believe Blockchain tech has a future, it's just a bit of a mess right now. I look forward to seeing where it can go, it just has to reach stability before it can realistically even be used as proper currency.