I personally do not know what will happen to the entire Crypto market, but it seems it's about to be heavily shaken up in the coming weeks.
Reddit is killing off all 3rd party apps within the next week or two. I expect a mass exodus of users there shortly after. Reddit is by far the most popular place to go for crypto news.
Binance is now being sued by the SEC. They are the #1 crypto exchange, and we all know how dirty CZ and Tether are.
The perfect storm is now coming for Crypto.
Let's see if any coins/platforms survive it. I know many here are dug into the sand on both sides, I think we are getting that answer soon on what will happen with Crypto, and it's potential role in the future.
I personally think a few will remain, but I can also see it going the other way too, it all goes POOF.
The technology behind digital currency, or NFTs, etc. can be used for all sorts of cool stuff, but that doesn't give it value because it takes nothing to make it do that work. Besides, other similar techs are better suited than bitcoin for all those projects, and again, they take very nearly zero resources to make it happen.
My point is would be that some BTC-like currency might be a good middleman for settle things in. You would only be using it as a stop between 2 differing currencies, and likely wouldn't have much exposure beyond the time it would take to swap back out.
Think like how companies might end up swapping from CAD to USD, and then from USD to Euros to pay their European supplier from their Canandian business' profits. It matters less that the USD has real value, and more that everyone involved is ok with USD, it's quick to liquidate once done, and is relatively quick to settle.
Bitcoin might not be the best for the job, but it certainly checks off a lot of the boxes.
I completely agree with you and I understand your point. My point was that this "use" doesn't give it value, because the resources don't actually get used up on the transaction. It is a potentially useful bookkeeping tool.
I say that because the use you suggest, and other uses for the technology are often suggested as "intrinsic value," justifying investment. Such uses DO give it value, but the value is so small it is effectively zero and will never increase.
I didn't think that you were suggesting that it would give them value as an investment. I was merely commenting on the fact that these uses don't do so, because so many people (who are invested in it) are confused about that.
"it is a potentially useful bookkeeping tool"
The Bitcoin network is a permissionless digital bank. When you exchange your fiat for sats everyone on the network acknowledges that those are your sats. Banks cannot create more sats to dilute yours. Through mining there will be about 10% inflation over the next 100 years, compared to the fed inflation target of 2%/year.
Agreed. It has useful security features. That's what has been said in the exchange that you are commenting on. While I didn't give details, those features are implicit in the specific quote you cited.
None of that gives it effective intrinsic value however. "Intrinsic value" means that it can be used to produce something. The "bookkeeping value" of Bitcoin does not give it value in any meaningful way because it can exert it's value through any amount of exchange, and it is effectively infinitely divisible. If you exchange a whole Bitcoin or one trillionth of one, its security effects are identical, thus, while to say its value is zero would be wrong, it is effectively zero, and will never increase, because its "scarcity" will never change with respect to its use (it is an "infinite resource" with respect to its ability to be productive).