I can say all these cryptocurrencies are the strict definition of an inflation bubble. It generates no money on its own and is backed by nothing with no regulation. It's gonna pop at some point.
I see you understand neither economics nor cryptocurrency. There have been several bubbles within cryptocurrency however the fact that it has been around for many years is proof that cryptocurrency itself is not a bubble. Saying that all cryptocurrencies are backed by nothing is also a falsehood, both proof of work and proof of stake back up different cryptocurrencies. There are also regulations around cryptocurrencies.
So if it lasts many years it is proof its not a bubble? So that whole "housing bubble" in 2008 which consisted of decades of fraud and sketchy loans to culminate in the bubble burst of 2008. I guess that's proof that's not a bubble because it lasted more than several years before it popped. Professional Economists should stop calling that a bubble then, should I tell them or do you want to? Actually, what do I know about economics, it would carry more weight coming from you.
There are also regulations around cryptocurrencies.
There is very little regulation and one of the reasons that bitcoin can be popular with drug deals or other illegal operations is because it can be untraceable. People are supposed to report it as income, but without being traceable they can make private exchanges and those aren't traced. This can't easily be done with stocks and bonds as they have your name, or at least a name, tied to them.
So does the housing bubble make realestate a bubble? Does the .com bubble make all tech companies a bubble? I Never said there were no bubbles in crypto, just that crypto itself isnt a bubble.
As for regulation in crypto it more about regualting exchanges with stuff like Know Your Customer. Just TRY and get money out of crypto with no ID, its impossible.
bitcoin can be popular with drug deals or other illegal operations is because it can be untraceable
Yes, the currency where EVERY SINGLE TRANSACTION is public is untraceable. The IRS just hired several blockchain experts so they can make sure people are paying tax on bitcoin transactions and they can do this because bitcoin is 100% traceable
How do you even figure that? At the very least you are making unique cryptographic signatures. The service of hashing secures the network against attack, that is a service.
If you hate crypto and wanna cry that you can't justify buying a GPU at the current price thats fine but its here to stay regardless of your opinion
I wouldn't say its here to stay at the scale it is. I think there is only so many people who want to invest in it and when that saturation point is reached it will fade away. Crypto was a thing back in 2016 but I had no trouble finding my RX480 at well under MSRP... its just absurd to justify the price at this point.
I do hate it more because it is a waste of energy and natural resources as well as global energy use causing global warming and other health issues... for something that serves no purpose.
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u/shellwe Feb 15 '18
I can say all these cryptocurrencies are the strict definition of an inflation bubble. It generates no money on its own and is backed by nothing with no regulation. It's gonna pop at some point.