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602

Who would have thought?

Who would have thought?

(post is archived)

[–] 0 pt (edited )

Technically there is really only one cryptocurrency and that is Bitcoin. By that I mean, that is the only crypto that was not monkeyed with by its designers to give the designers x stake up front while the schills take the bate on the rotating chairs titanic. Bitcoin is the only one that just let it go public for mining and the only one that has clear history, risk exposure and real scarcity.

Technically, a store of value is all imaginary, value doesn't exist. You can store value in anything as long as people agree on terms and there is actual scracity. So things like gold, giant rocks and sea shells have all been used to exchange and store value throughout history.

The answer to your question is basically that value doesn't exist only mediums of value exchange. However, all mediums of value exchange must at minimum have scarcity as the key feature. Portability, transaction speed and cost and other features are dependent on lots of factors including the general technology levels of a civilization. If Bitcoin could scale to the global need for daily transaction capacity (and beyond) at a transaction cost of electricity + a small premium + instant transactions, it would have demolished all of the world banks and currencies already.

The worlds countries would be banning it and all kinds of technologies, implementing all kinds of controls so privateers could not trade around the restrictions and preparing for war. The only reason, in my opinion, this has not happened is because transaction time is too long, transaction costs are too high and all of the schemes to address any of those points of friction make the transacting in crypto on a day to day basis for average people impossible to understand. So, because Bitcoin has high transaction costs, take a long time for the transaction to be settled, it cannot be used directly for day to day trading and instead is a niche value store similar to gold bullion.

Wealth management 101 is protect the principle and manage risk appropriate to the clients risk tolerence. You can't win if you don't take a risk and if you risked $1000 on bitcoin in the first couple of years you would be a billionaire today even at the current depressed pricing.

But that is unrealistic under any form of currency… 1000 bucks = a billion dollars in a few years. Did you invest a grand a few years ago? This sounds even more ponzi than I originally thought. Crypto is confusing and concerning. Lose your key? Not technically savvy? Have a stroke with temporary memory issues?

At least money and bank accounts are simple because the average person is simple. Complexity breeds inequality.