Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-20-2021, 06:41 AM
 
7,272 posts, read 4,220,986 times
Reputation: 5468

Advertisements

I know that bitcoin is trading over 40k, but is it essentially worthless?


My take is that people are putting money into it, expecting to be able to use it at places that accept it, and then those places expect to use it with suppliers or convert it into the currency of their choice.


As long as that happens - great. But what happens when they don't allow that to happen any more -- or if we enter a major devaluation or hyperinflation scenario. It is nothing but digital air. Worth less than paper. A confidence game.



Will investors in bitcoin become trapped in the trap they set themselves?
Reply With Quote Quick reply to this message

 
Old 08-20-2021, 07:55 AM
 
7,759 posts, read 3,895,253 times
Reputation: 8856
Yes. It isn't worth a dime and will go to zero. Nothing to see here

BTW this thread will be locked as there is only one Crypto thread allowed
Reply With Quote Quick reply to this message
 
Old 08-20-2021, 09:17 AM
 
Location: Bellevue
3,065 posts, read 3,330,747 times
Reputation: 2924
Quote:
Originally Posted by illtaketwoplease View Post
I know that bitcoin is trading over 40k, but is it essentially worthless?


My take is that people are putting money into it, expecting to be able to use it at places that accept it, and then those places expect to use it with suppliers or convert it into the currency of their choice.


As long as that happens - great. But what happens when they don't allow that to happen any more -- or if we enter a major devaluation or hyperinflation scenario. It is nothing but digital air. Worth less than paper. A confidence game.



Will investors in bitcoin become trapped in the trap they set themselves?
This is no different from any other speculation. May as well trade in baseball cards. They are only worth something if somebody else will pay more for it. When it stops, it is worth nothing.

To be eventually worth something governments will have to accept it in payment for taxes. They will expect you to pay taxes on any gains but not accept any losses. Somebody could lose their shirt.
Reply With Quote Quick reply to this message
 
Old 08-20-2021, 10:18 AM
 
10,513 posts, read 5,176,353 times
Reputation: 14056
Quote:
Originally Posted by illtaketwoplease View Post
I know that bitcoin is trading over 40k, but is it essentially worthless?
Crypto is not worthless. It has a much higher intrinsic value than paper currency because it brings with it an infrastructure (blockchain) that is more efficient and trustworthy for making transactions. There's no question in my mind that eventually the US, EU and China will adopt crypto as legal tender. Over 90% of all transactions in the U.S. are digital dollars now, so it's not that big of a jump for people to use FedCoin on their smartphones.

Bitcoin itself could become worthless though. Really, the only thing it has going for it is that it was first and has name recognition. The very high energy cost of mining it is a real drawback and runs the risk of becoming a bad word, slapped with a carbon tax or even banned.
Reply With Quote Quick reply to this message
 
Old 08-20-2021, 11:21 AM
 
Location: Flyover part of Virginia
4,234 posts, read 2,464,214 times
Reputation: 5077
Can you do anything with a Bitcoin, other than give to someone else? No? Then yes, it's fundamentally worthless.

Silver and gold have real utility, which is why they became money in the first place. They were both highly sought after luxury commodities long before they were minted into coins. Even national fiat currencies have not utility than a Bitcoin- you can at least burn a paper dollar, or perhaps make a bracelet out of it.
Reply With Quote Quick reply to this message
 
Old 08-20-2021, 12:41 PM
 
5,907 posts, read 4,440,392 times
Reputation: 13447
Quote:
Originally Posted by Taggerung View Post
Can you do anything with a Bitcoin, other than give to someone else? No? Then yes, it's fundamentally worthless.

Silver and gold have real utility, which is why they became money in the first place. They were both highly sought after luxury commodities long before they were minted into coins. Even national fiat currencies have not utility than a Bitcoin- you can at least burn a paper dollar, or perhaps make a bracelet out of it.
Can YOU specifically do anything with gold or silver other than give it to someone else? Yes, it has industrial application, but those are applications that would lose their value in society collapse and YOU probably don’t know how to convert them to those uses anyways.

Money is a medium of exchange…it doesn’t need utility.
Reply With Quote Quick reply to this message
 
Old 08-20-2021, 12:48 PM
 
Location: Flyover part of Virginia
4,234 posts, read 2,464,214 times
Reputation: 5077
Quote:
Originally Posted by Thatsright19 View Post
Can YOU specifically do anything with gold or silver other than give it to someone else? Yes, it has industrial application, but those are applications that would lose their value in society collapse and YOU probably don’t know how to convert them to those uses anyways.

Money is a medium of exchange…it doesn’t need utility.
Gold and silver were already desirable as commodities in and of themselves long before they were ever minted into coins. They have unique properties that are found in no other metal. Silver in particular is an incredibly useful industrial metal- it's the second most versatile commodity after only oil. Gold also has industrial uses. But even ignoring their industrial or technological uses, they can be used to make jewelry, artifacts, art- you can craft gold/silver into something beautiful. You can't do that with a Bitcoin. Money isn't just a medium of exchange, it needs to have value on its own.
Reply With Quote Quick reply to this message
 
Old 08-20-2021, 03:28 PM
 
10,864 posts, read 6,503,023 times
Reputation: 7959
even gold and silver is not unniversally accepted,tell it to those who are straned on an island,they will take your fish,papaya,water,coconut but not your gold or CD>
as for digital currencies,what happens if there is a major earthquake and there is no electricity?
Reply With Quote Quick reply to this message
 
Old 08-20-2021, 03:34 PM
 
Location: Shawnee-on-Delaware, PA
8,095 posts, read 7,464,627 times
Reputation: 16368
Quote:
Originally Posted by illtaketwoplease View Post
Will investors in bitcoin become trapped in the trap they set themselves?
State your case for Bitcoin becoming worthless. Other than saying "well, it could happen".
Reply With Quote Quick reply to this message
 
Old 08-20-2021, 03:35 PM
 
10,513 posts, read 5,176,353 times
Reputation: 14056
Quote:
Originally Posted by Taggerung View Post
Can you do anything with a Bitcoin, other than give to someone else? No? Then yes, it's fundamentally worthless.

Crypto has far more utility than gold or silver. You can use blockchain for transferring medical records with 100% security and chain of custody. DHL uses it for package tracking and transactions records. NFT's allow artists, musicians and filmmakers to create content that can be sold to one owner exclusively and there will never be copyright piracy. And, as I've already pointed out, governments and the central banks will adopt it as legal tender; they have to in order to prevent crypto from consuming too much wealth. Some people will refuse to use FedCoin because they prefer the anonymity of cash.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top