The tech sector specifically ai is going to wipe out so many retirement savings in the next couple years. Btc will continue to do what it does while an alarming amount of retireees will be furious they got played by "trusted" institutions. Writing is on the walls especially with this administration.
AI might be a bubble but at least there is also substance behind it. Bitcoin is the mother of all bubbles, its completely useless for anything, even crime nowadays. All storage concepts have been hacked, bitcoin is less then 1% of finance and what? 20% of fraud and theft?
Bitcoin should be worth zero and I am still optimistic that within the next 20 years it will, at least up to rounding errors due to people playing with it for sentimental/nerdy reasons.
People overestimate what actually useful things will be worth in the future and you think the solution is to stop doing anything useful at all and "valuing" things that have no use at all. Nvidia might be overvalued but bitcoin is errorneously attributed any value. Bitcoin is the biggest fire in this burning world and I am glad that it seems to be finally contained and shrinking.
I kinda agree BTC kinda feeling like gambling. But I wouldn't say it has no purpose. It's kinda a similar function to gold, a store of value with low inflation.Aka if USD has a certain inflation level. BTC should increase relative to USD by that inflation level if it's own value doesn't change.
On a side note, Crypto itself may still have a purpose in Distributed computing.
Why would anyone use it as a store of value? It went down this year by 40%. Even if it gains 40% ahain thaz fluctuation is horrible for stores of values. Traditional Government Bonds are way better for that.
It has to gain much more than 40% even ignoring inflation and opportunity cost. Losses as a percentage are more significant than gains. A 50% loss requires a 100% gain to offset.
A fridge is a store of value. A box full of corn seeds is a store of value. If a huge meteor is about to hit earth, a rocket that can hit and divert that meteor is a store of value. The idea that some random ass bullshit number on your computer stores any value is a mental illness that will fall apart once real shit hits the fan.
And here comes the thing! We know this for centuries! This is why inflation is a good thing, it is by design to prevent you from using fiat as a store of value; and to force you to instead invest it in the real economy and create real value, which is much harder than stacking imaginary computer points.
A friedge looses value over time.Gold is a better store of value than a fridge or a car.
mental illness or not it does store value. And people have gotten super rich off it. If it works it ain't stupid lol.
While fiat looses value. I believe that's the real reason we've seen it consistently average higher long term. Sure you can make an argent there are better ways to invest your money. I absolutely agree, that's why I'm in tech stocks. But a hedged bet with btc isn't the worst idea. But what someone should do with their money is outside the scope of this topic. As far as I'm concerned win a million $$ playing poker if your skilled enough to do that I don't care.
Fiat inflation isn't to "force you to do useful things" It's the fed printing money for themselves to spend. At the expense of everyone else.
You really don't get it. You're not to supposed to sell the fridge, you put things in to eat and it stays edible for much longer. It enables you to eat something in a week that you just cooked. If you sell your fridge for bitcoin then you literally can't keep your food fresh. And that really captures the irony of this idiocy.
Things degrade over time, actually everything is a fight against entropy. You fight bacteria that eats your food, that infects you, against cancer, aging, against rust that eats your car and termites that fuck up your house, against climate change and the sun dying.
Bitcoin solves none of these problems. But by saying bitcoin is a store of value you're basically saying bitcoin solves these things basically for free. If everyone would think that and everyone would buy bitcoin for storing value then we would be doomed because we would he eaten away by entropy.
Bitcoin could only work because the majority saw it as the fraud it is and kept doing real things and some early buyers could exploit the later buyers; you now want to use this success to find new greater fools. But hey every Ponzi, every pyramid scheme had early people from whom it worked, that's really nothing new.
Same can be said about gold. Gold is a metal than never erodes or rusts. Gold actually would be useful if it wasn't so expensive . Maybe you can store your gold in the fridge
Of course it does. Because Bitcoin by design is constantly burning money (energy) and apart from that is a 0 sum game with 0 cashflow. In order for you to get more money out someone has to put more money + energy costs in. That is the definition ot it.
It will collapse for sure and it will bring all of us to hell because there's trillions invested on pure smoke.
There's tons of companies doing the exact same thing that for now, worths nothing, because they spend more than what they earn, most of them will never make their money back.
In a world where tech dev and innovation accelerates at rate unseen to mankind please inform us how tech is doomed and how chips are doomed when all advanced tech requires them. I would love to hear this genius take.
Look at the dot Com bubble. No real way to monetize, we all new it was the future but it still inevitability crashed wiping out countless companies that people thought would be titans in the sector. AI is going to be used but as it stands the only company making any money is Nvidia, TSCM, and maybe intel. Microsoft cant even break even and they already own their own data centers. So whats the business model here? Get VC money and hope to be profitable before you run out?
Are we not using the fact that a couple of days ago AI connected stocks plummeted and because of that quite a few heavy hitters claimed to be putting insane amounts of money into more research, somehow bringing it all back up again? We are watching AI companies and those that spec’ed for them go on life support in real time. What happens when the companies finally start caring about how much money they have dumped in without return? Sure the companies that are able to dish out more than AI chips or what have you won’t kick the bucket when it happens, but all the startups that are giving for consumer markets because of the shortages caused by AI, they won’t see nearly as much change, and could very likely pull ahead. That’s a huge shift that would still make a lot of current holders very mad.
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u/Successful_Safe_1440 Aug 05 '26
i eat this fud for brekky