Internet coins have no real value, they're too volatile to be a proper store of value, can't really be used for purchases at this point (barring some illegal transactions where they serve a small purpose), and while the supply of some individual currencies is limited, new ones pop up every day so the overall supply of crypto currency as a whole is effectively infinite. The value therefore is entirely speculative, just based on what people think that people will think has value. Just look at the bitcoin spike last year, it's a textbook perfect example of a market bubble.
Older more established versions are constantly fighting a losing battle against newer ones with improved potential for use as actual currency, and new versions are FAR more likely to end up being worth nothing than being worth something.
I get not likely fiat currency, but why not invest in a real estate, stocks, precious metals, or literally else anything that has tangible real world value? You're far more likely to make a consistent profit, or at least not to lose all your money, with any of those options. With real assets you can look at real world events that effect value, rather than autistic technical analysis of past trends. Or, if you want to keep doing your autistic technical analysis, there's a hundred plus years of price data to look at.
I think like you. I also think a gold/silver standard backed crypto would be the solution. The dude smart enough to do this will instantly become a billionaire, every boomer and serious investors would love a store of value crypto.
The god protocol will be Cryptos main selling point.
Jaxson Kelly
It doesn't work the same way smart contracts to the physical world don't work. Eventually the digital world will be worth much more than the physical world anyway so it's the best bet.
Gabriel Diaz
It's a very nice idea, but probably not possible. Gold has costs associated with holding it securely, so for a crypto currency to be backed by physical gold would require somebody absorbing those costs. Governments were willing/able to do that, but anybody else issuing a gold backed currency would just be losing money. Alternatively the currency would have to decrease in value slightly (0.1%/year) over time to cover the costs.
Ryder Torres
OP is correct about cryptocurrencies like btc and ltc - they are inherently worthless - but not about utility tokens like eth that have real supply and demand beyond speculation driving the price. For example you need to buy ether if you want to run a smart contract. This is everyone’ idea when they first learn about crypto but it doesn’t hold up under scrutiny. Gold backed tokens would have none of the price upside or decentralization of pure software coins and all of the risk and inconvenience of crypto.
Landon Bell
I agree, fiat currencies are pretty bad, but currencies of stable countries don't rise or fall by tens or hundreds of times over a few days, weeks, months, or even years. The US inflation rate has been pretty steady and predictable for decades. The dollar decreases in value, but a atleast it does it in the predictable way. Also, I didn't suggest sticking your money in a bank account; you should invest in something that's likely to hold or increase in value over time.
Jose Howard
ok thanks for the explanation frens, i'm a crypto brainlet so it'smuch appreciated. Another thing bothering me with crypto is the potential instant obsolescence. Technologies on the matter are evolving so fast, how can you assure a crypto keep it's value when at any moment a new one, faster, cheaper and more securized could take the lead?
>how can you assure a crypto keep it's value when at any moment a new one, faster, cheaper and more securized could take the lead? You can't at the moment. It's currently all speculative with massive potential upside. Eventually something will become so dominant that people won't be able to imagine using something else unless something catastrophic happens.
Cameron Perry
Also this won't happen until it's the defacto global currency. Bitcoiners that think they have a meaningful network effect are delusional.
Connor Morales
When disclosure happens and advanced tech is released, you will not be transacting FIAT(top kek) with the ayys or carry precious metals in your pocket.
>go on trip to Mars >arrive & check into the hotel >pay with some contaminated paper bills >get shot
Then wouldn't some kind of institutional regulators help to fix this issue? I know it's not a really popular idea for the moment but if we want a global adoption isn't it the only way to not scare the normies?
Henry Murphy
Why not just use fiat at that point?
Christopher Hall
No, crypto will only get up if the existing systems fail.
Henry Gutierrez
>Why not just use fiat at that point? Clearly idk, i don't see the point of cryptos to be totally honest. I saw many videos but i didn't get why it's nice, to me it just sound like a volatile fiat.
Kayden Moore
What stops that in theory is that there are developers constantly improving the software to keep the coins up to date. In practice since they are decentralized though this doesn’t always work out so well because of lack of structured incentives like with a normal software company (salary, stock, etc) and because disagreements can lead to bitter splits in the projects and lots of drama, which is what is killing bitcoin.
Samuel Allen
Ok gotcha, tho if a totally different tech is used i guess they couldn't adapt the software right? Like blockchain to hashgraph is not possible, isn't it?
Crypto does have real advantages over fiat, just not the ones the euphoric retards who want to decentralize the world obsess about. Two of the main advantages are you can very cheaply and easily integrate crypto into software which opens up a lot of possibilities that weren’t feasible with fiat and also crypto is inherently international unlike fiat which is a pain in the ass to send from one country to another.
Nicholas Nelson
but when i use my credit cardon amazon it's also digital money, what's the upside changing for something else?
Anthony James
You’re right, there isn’t much of a point to them. Look into smart contracts and dont get caught up in the normie/reddit mindset of crypto currencies being the end all be all.
Evan Smith
Ethereum currently is doing a pretty huge transition from proof of work to a more sophisticated proof of stake algorithm but it remains to be seen if it will work. The other main example is some people are trying to add smart contracts to bitcoin but due to what a mess their development community is I doubt they will pull it off.
Jaxon Williams
It's not real money, you can never hold it. You can ask you CC provider to 'send' money to amazon for you and they might process that or they might ban you from sending money or they might ban amazon from receiving money. They will also tell the NSA, advertisers and whoever else about your transaction.
Isaiah Walker
Ok thanks to you it get a lil less opaque to me even if i still fail to understand why it's supposed to be a revolution as big as world wide web.
Last question, what could trigger a mass adoption to your opinion? What happen if it don't happen?
I don't get your point fren, what are you trying to tell me?
>a gold/silver standard backed crypto would be the solution. Woudln't this be easy to do? Pegg Bitcoin to Gold price, and this is it
Matthew Jenkins
How do you think currency pegs work? Magic? The two need to be interchangeable to maintain the peg. Somebody would need to hold the gold to match the coin, and they would need to be trusted to provide gold in exchange for it.
Jackson Rodriguez
>I agree, fiat currencies are pretty bad, but currencies of stable countries don't rise or fall by tens or hundreds of times over a few days, weeks, months, or even years. The US inflation rate has been pretty steady and predictable for decades. The dollar decreases in value, but a atleast it does it in the predictable way. Also, I didn't suggest sticking your money in a bank account; you should invest in something that's likely to hold or increase in value over time.
Bitcoin is the useless coin of them all, but it has the value of store of hype, so you can make money off people who are going to invest after you, based on hype.
I admit it: I want to buy bitcoin only because biz says that only newfags and normies think that altcoin would be better investment that bitcoin. They are smart, they must know their shit.
But the day that some other currencies would come out and be widley adopted because better of bitcoin and not scaling problem, that day I could make some crazy things.-.. cause my brain and all my human being says to me: ''it's a fucking shitcoin (bitcoin) which can handle 7 tx per second''
Tyler Bailey
>I don't get your point fren
Receiving a crypto payment >generate payment address >give address to payer >receive payment
Receiving CC payment >set up bank account >give bank all your details >verify those details with documents >give account address to payer >receive payment >lose 50c + 3% of payment to fees >account under review because payer was a terrorist/Russian hacker/ Jew charge back scammer >lose your money, banned from using digital money ever again
Landon Hall
That's the goal, BTC to have the marketcap of gold. So 1 BTC = $300k
Sebastian Thomas
You have also consider how much time the gold has had to get that market cap, so no, you arent gonna be rich off bitcoin, newfag
Aiden Nguyen
ok it seems nice to receive a payment but most ppl send money instead of receiving it, mostly to big structures. In this scenario, tracability is a good thing no? Also if i want to get delivered a goods, crypto or not the guy sending the product will have to know my address, my name etc, and it's a good thing so if something go wrong we can fix the problem.
I admit the lack of fees is pretty neat. I don't try to shit on crypto, i just want to understand what we really gain from it. So far it's : more anonymity and less fees. Which is pretty cool i agree.
Luke Thomas
You have to go through the same shit to start sending payments. Your account and therefore financial life can be shut down just as a easily.
Jacob Jones
Every coin has a different use case such as: smart contracts, private transactions, currency, remittance, currency payment platform, gaming, gambling, tokenized securities, tokenized real estate, decentralized internet hosting, vpn service, data transfer, data storage, store of value, decentralized data processing, decentralized social media etc. You need to research why decentralization is important and then figure out what kinds of coins you want to invest in. Higher marketcap coins are a safer investment but there is less upside (10x instead of 1000x).
Adam Morris
This is a really good point that a lot of people in the sector don’t get. Fiat is already good enough for buying groceries from Amazon and stuff like that. What is interesting about crypto isn’t doing things slightly better than you could with fiat - it’s doing new things that weren’t possible or realistic with fiat. The main example so far has been international startup crowdfunding (ICOs) but unfortunately those have mostly been scams to date. The next major application and what will lead to mass adoption imo is crypto micropayments and tips integrated into games, social media, etc. People already become addicted to the dopamine boost from getting Likes and (you)s on social sites and loot in games so I’m betting on that boost being greatly magnified when a financial reward is attached to it. Doing that with fiat is a giant pain in the ass but with crypto it’s easy to implement.
