What value bitcoin has? Exactly the same, because it's value is derived from perception. It is nothing to do with energy. In the long run, the bit bitcoins will take tremendous power to mine. It does not mean it is valuable. It only means some people thought it a good deal. Why would you pay 100.000 dollars for that?
You can say the exact same thing about gold. Hence, digital gold.
So, that leaves your only argument: energy. Which in and of itself is a ludicrous argument for value. Perhaps it may represent a lot of value to the miner, but to the user ...? Can you use it in an alternative way? It may pan out or not, but is does not convince me.
People thought gold was worthwhile to dig out, e.g. they expended energy to get some. This puts a lower bound for its value when exchanged for anything else.
I am saying, that one fiat-system morphs into another, where the only difference is, bitcoin or akin crypto's in majority are not elastic, except for a couple which mirror the fiat currency's elasticity 1:1.
Fiat is inelastic, at least nominally. The value of it fluctuates, mostly due to inflation. The same happens with Bitcoin, for now due to speculation and onboarding, and later on mostly due to deflation.
but to the user ...? Can you use it in an alternative way?
Yes, absolutely. You can already buy just about anything you want with it directly or through payment processors.
In the future Bitcoin and more generally smart contracts will fully replace the legacy equity markets. No middleman, 24/7 access, fast, cheap, and no central authority that can shut anything down or anyone out for whatever bullshit reasons.
Sure, maybe something will replace Bitcoin. Not extremely likely anytime soon, and we'll probably see multiple blockchains competing with each other in the free market instead. Average age of a fiat currency was somewhere along 1xx years, by the way.
And that's just the way things should have always been in the first place. Pretending that's a bad thing would have required anyone to stop trading with seashells, because the new thing would (and did) just get replaced anyways.
Gold does not have value due to the energy consumption it takes to mine.
Its properties in total determine its value. It could be called alternatively useable. The monetary value is an added bonus, which has grown over time for obvious reasons.
In the book coin's financial school, a table is presented with the relative value over time. Because of the age of the book, it can easily be seen how the fiat system has distorted this sense of value.
Of course,specialization offers it's own reward and risk matrix. And as can be clearly seen in terms of healthcare, nourishment , degradation of value of previously held in high regard items seem to move to more specialized products, where monocture is advanced.
As soon as the thin layer of specialization gets rocked, like in this plandemic, a movement to revert back to these previously held values is visible. Discovering these "lost" or "forgotten" values first is seen in the underground, to later surface in a wider use-community.
Value is a matter of time-preference, and hence dependent on where a society in the aggregate is.
Crypto/ block chain is a very powerful technique, hardly understood by many. If employed the right way, it could present a blessing to society, however, we all know and seen how that goes. From my perspective, it represents a trap.
Scenario -1:
The rogue government's do nothing about it. This means access to competing payment systems away from their taxation base put more money in the hands of the people, shifting the power differential.
Scenario -2:
Government's take action by registering all addresses and making sure max transaction without oversight are instituted.
They may even go as far as to set up a regulatory framework that binds the use of crypto to certain systems and registrations. For intance, decentralization would then be not fit for a license.
Underground may still be using such, but in essence, what give crypto clout has been effectively cut away, castrated.
On top, government's may come out with their own system, requiring everybody to use it, and others systems are prohibited, brought under criminal law in terms of money laundering and terrorism financing.
So, in essence, I consider it a trap, that may cause a lot of people to lose a nice portion of their portfolio value, in which case a certain amnesty may be granted. Just like with current tax- decreasing schemes.
Of course, this is provided, the current powers that be have a bit more time to roll-out their plans.
You can say the exact same thing about gold. Hence, digital gold.
People thought gold was worthwhile to dig out, e.g. they expended energy to get some. This puts a lower bound for its value when exchanged for anything else.
Sure, maybe something will replace Bitcoin. Not extremely likely anytime soon, and we'll probably see multiple blockchains competing with each other in the free market instead. Average age of a fiat currency was somewhere along 1xx years, by the way.
And that's just the way things should have always been in the first place. Pretending that's a bad thing would have required anyone to stop trading with seashells, because the new thing would (and did) just get replaced anyways.
Thanks for your response.
Gold does not have value due to the energy consumption it takes to mine.
Its properties in total determine its value. It could be called alternatively useable. The monetary value is an added bonus, which has grown over time for obvious reasons.
In the book coin's financial school, a table is presented with the relative value over time. Because of the age of the book, it can easily be seen how the fiat system has distorted this sense of value.
Of course,specialization offers it's own reward and risk matrix. And as can be clearly seen in terms of healthcare, nourishment , degradation of value of previously held in high regard items seem to move to more specialized products, where monocture is advanced.
As soon as the thin layer of specialization gets rocked, like in this plandemic, a movement to revert back to these previously held values is visible. Discovering these "lost" or "forgotten" values first is seen in the underground, to later surface in a wider use-community.
Value is a matter of time-preference, and hence dependent on where a society in the aggregate is.
Crypto/ block chain is a very powerful technique, hardly understood by many. If employed the right way, it could present a blessing to society, however, we all know and seen how that goes. From my perspective, it represents a trap.
Scenario -1:
The rogue government's do nothing about it. This means access to competing payment systems away from their taxation base put more money in the hands of the people, shifting the power differential.
Scenario -2:
Government's take action by registering all addresses and making sure max transaction without oversight are instituted.
They may even go as far as to set up a regulatory framework that binds the use of crypto to certain systems and registrations. For intance, decentralization would then be not fit for a license.
Underground may still be using such, but in essence, what give crypto clout has been effectively cut away, castrated.
On top, government's may come out with their own system, requiring everybody to use it, and others systems are prohibited, brought under criminal law in terms of money laundering and terrorism financing.
So, in essence, I consider it a trap, that may cause a lot of people to lose a nice portion of their portfolio value, in which case a certain amnesty may be granted. Just like with current tax- decreasing schemes.
Of course, this is provided, the current powers that be have a bit more time to roll-out their plans.