posted by justincredible
I wonder if this thread will bring BoatShoes out of the woodwork to talk about MMT?
posted by gut
Every time I mention treasuries I wait....
First thing I thought of as soon as I saw this thread.
posted by jmog
The coders can do the same, they can increase/decrease the speed at which new bitcoin are made, they just haven't done so yet. They have stuck with the "plan" so far.
Not quite. Yes, they did cap it, but based on HOW Bitcoin is mined, it necessarily requires more and more effort to create a single new one with each previous one mined. So, without any kind of enforced cap, its creation still runs on a sort of hyperbola with the axes being the total number currently in the market and the expended computing effort necessary to mine an additional one. Allegedly (I've never mined), it's getting to the point that, even if you account for some of the more radical predictions on value down the road, it's just not worth the cost to mine them anymore. Essentially, even with a bullish view, it costs more than a BTC will ever likely be worth to mine a BTC, so the market curbs the number in existence.
posted by gut
As a commodity, not as currency. Purely speculative gamble that bitcoin WILL be worth something. The demand is primarily investors and not consumers/purchasers.
Generally, this is what I think has been ... and still is ... the biggest drawback to any cryptocurrency. With the rise in popularity and perceived value, they've largely been treated as investments as opposed to currency, and as such, it's best to treat them that way (or at least to view them that way).
Having said that, there is one difference between cryptocurrency and the stocks you referenced: They're actually THE preferred method of transaction on the dark web because of the anonymity. And as a result, those who accept them also don't convert them right away either, because sellers on dark web markets are often also buyers on dark web markets (not to mention the fact that it's not the worst way to hide income from the IRS). It's a microcosm, to be sure, and what is propelling it there isn't really replicable in an open market, because anonymity is less valuable. But it does seem to have a base there, and I don't anticipate it going away altogether, if for only that reason.
It is also worth mentioning that, at least for BTC, it is the basis of many of the other altcoins. Their value is bound to BTC as opposed to being bound to USD, so with regard to that specific cryptocurrency, it does share that foundational principle (XMR, for example, isn't valued per USD, but per BTC).
I'm not saying whether or not it will survive. I think it needs to drop in value in order for that to happen. Its use needs to NOT be as as a growth investment, but as a tool of exchange, and I think it will eventually happen once all the HODL bros stop pumping the hell out of it every few months, which will help with the volatility.