https://www.google.com/finance/quote/BTC-USD?window=1M
https://coinmarketcap.com/currencies/ethereum/
Former US President Donald Trump: Crypto Is A Disaster Waiting To Happen
I have a libtard coworker who has sank a lot money in to this ponzi scheme, I tried to warn him over a year ago. I told him Trump doesn't like crypto, take my advice and get out now, he didn't listen to me. I have a couple other libtard coworkers who voted for Biden, they won't even look me in the eye these days.
Kinda like the vaccines, when you wake up dead it means its working?
I was being facetious. I wasn't trying to correlate the value of crypto to a vaccine. What I meant is you can take the vaccine and then go buy some crypto and one day soon you will wake up dead and broke.
No, he means that all crypto will eventually devalue to a set amount based on it's generation rates.
So, like any other form of currency, it's worth what people think it's worth. Nothing special there.
But unlike other forms of currency, there is a factual dead-limit to how much can exist in a livable time-frame.
Crypto is based on lock-key cipher systems that you then certify with the blockchain holder for the crypto rights. (To put it briefly).
It's based on mathematics, where solving for all possible solutions for X, where X can have variable solutions. So, for example, you can make 10 using the following solutions: 1+9=10, 2+8=10, 3+7=10, 4+6=10, 5+5=10.
Once I have proven that those are all the possible combinations to make 10, then I certify my work, and I get a single coin. Now do this for every possible number, algorithmically, and you can see that the 100,000,000th bitcoin is gonna take a lot longer to generate.
They get longer and longer to generate such that eventually the graphics card you are generating it on will burn out before you get a solution. In some joint-network calculations, it will get as long as a human lifetime.
In summary, the first coins generated from a crypto are produced fast. The production of them gets slower and slower until it stalls completely. At that point, the currency is locked in at a total amount of coin available.
BTC, being one of the first, is arriving at its limit. The diminishing returns have locked in, and now it's taking years if not decades of number crunching to create one certified coin.
The value of the coin then is expected to go down. This is because ventures for farming it is perpetually operating at a loss. It's like when a video game ceases updates. With no new content, the user base dies off, interest wanes, microtransactions cease, and investors will shift to newer projects.
It WILL stabilize, but only at what it is truly valued at. This is the volatile nature of crypto. It will always peak and then dip and then plateau. Wise investors will calculate where it is supposed to plateau in value after the inevitable dip and only invest so long as the cost per coin is less than that anticipated leveling off.
Everyone who invested after the future plateau threshold will have lost money.
This is one of the greater flaws of crypto, as it has a market interest life span. Effectively, like game releases, the stuff "expires."
I will note, this is still a theoretical. Bitcoin (BTC), being among the first to gain prominence, means we are in uncharted water. Things beyond the scope of prediction can occur, which might shift the value any which way.
u/RabbleRabbleRabble is correct, this is expected, but only to a point.
It is only expected as it can be predicted. Since we have never had a currency form like this, and it still hasn't caught on in mass (major retailers still don't take it at the counter) we can only speculate what will happen next.
In my opinion, the volatility and nature for transaction (Jonah in Alaska whose most advanced technological possession is a HAM radio can't understand crytpo) mean that only those who are able to sustain the loss should hang their hopes on it.