Re:FTX’s financial black hole leaves Binance balking at resc...
by jboy55 on Wednesday November 09, 2022 @11:52PM
(#33542369)
Look, if you have a belief that Ethereum will power the digital economy, you should have no problem waiting until it does, and just use it within the digital economy. I use Venmo to buy random things from vendors at Art and Wine festivals , pay back some friends for dinner and (probably to crypto's envy) I pay for a legit therapist that I get rembursed from insurance (just not on venmo). Right now, I have $70 on my balance from people paying me back.
If I have a speculative belief that Venmo will rise above Cash.App, PayPal and crypto and end up powering the digital economy, even to the point that a major Blue Shield insurance company would send me reimbursements on it, should I be putting my savings into its balance? What should I value my money on Venmo? What utility would there be for holding ETH in that balance vs USD, besides sheer speculation that ETH would rise in value?
But that's precisely what currencies are largely valued on - the value of transactions conducted in that currency, and the speculative direction of those transactions.
Why do you think the US dollar is a stronger currency than, say, the Pakistani rupee? The US dollar is used to pay for more transactions AND speculators make a directional bet that the Pakistani economy won't be as robust as the US economy or that the US dollar's hegemony won't be threatened in the short-term.
If you have a speculative belief that Ethereum will power the digital economy, it is reasonable to value it at XX price.