Re:Crypto Market Crash Leaving Bankrupt Startups in Its Wake
by bb88 on Monday December 10, 2018 @08:41PM
(#18652718)
I too began to detect a hatred of US monetary policy from the most hardcore cryptocurrency supporters.
> Well being a medium for exchange is what gives bitcoins value.
I do want to separate out the concepts of "utility" vs "market value".
Probably a good example for this is a hammer. It has a great amount of utility for pounding in nails, securing lumber, etc. It's just not valued on the market though. $5 bucks maybe? You will save a bunch of time using one. However, being able to pound in nails doesn't justify a high cost in and of itself, since the market is flooded with them.
If, however, the utility of bitcoin(medium of exchange) is the only thing that is lifting bitcoin's market value (price), then its price depends upon it outperforming other cryptocurrencies and instruments of money. And the marginal cost of creating another cryptocurrency is maybe a weeks worth of time?
Because there appears to be an unlimited supply of numbers and algorithms, the market value of any cryptocurrency should approach zero over time even if it has great utility.
> Well being a medium for exchange is what gives bitcoins value.
I do want to separate out the concepts of "utility" vs "market value".
Probably a good example for this is a hammer. It has a great amount of utility for pounding in nails, securing lumber, etc. It's just not valued on the market though. $5 bucks maybe? You will save a bunch of time using one. However, being able to pound in nails doesn't justify a high cost in and of itself, since the market is flooded with them.
If, however, the utility of bitcoin(medium of exchange) is the only thing that is lifting bitcoin's market value (price), then its price depends upon it outperforming other cryptocurrencies and instruments of money. And the marginal cost of creating another cryptocurrency is maybe a weeks worth of time?
Because there appears to be an unlimited supply of numbers and algorithms, the market value of any cryptocurrency should approach zero over time even if it has great utility.