Is Bitcoin worthless ? (transaction, tax, money, properties)
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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?
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.
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.
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 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.
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.
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?
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.
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