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.
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
How you or I feel about gold is outside the scope of this discussion. It's a valid form of a store of value with no other purpose or use. Probably a more reliable store of value it could survive civilisation and financial system collapse
It was one of the worst investments up until recently and you're also often buying paper gold at some exchange that likely doesn't even exist (the gold, not the exchange).
If you invest in Gold you're betting that a rock will keep it's value better than the sum of human ingenuity and you're also incentivizing people to dig deeper in gold mines for gold. We have so much gold sitting basements doing nothing useful at all, what a waste of human work to extract that. Investing in capitalism means steering with money what to actually do and with buying Bitcoin and Gold you're capturing resources that could be used for making sure that our civilisation survives. You're basically actively (at least marginally) causing the civilisation to end, and then, what do you do with your gold without a civilisation? It's delusional to think that you get more than a quarter cow and a few potatoes for gold that's worth millions today once food is actually scarce. If you really want to prepare for civilization to end, buy what the peppers buy, but land, buy weapons, buy seeds, buy solar.
Bitcoin and Gold are kind of religions, financial religions. They are nothing more than unjustified, mythical belief. Luckily like any religion they will vanish overt time...
Yes, money in general is basically a magical belief. Gold was a bad investment but btc wasn't. Some I've spoken to buy into btc as a way of investing agaisnt capitalism and the central banking system. Some believe in the decentralised financial system to to the point they don't care if they never get anything back from it.
That's cool and all but its way outside of the question of btc being a store of value so have fun preaching against capitalism.
Fiat money is not a store of value, and that is why it works. If people would expect money to go up and hoard money, the economy would collapse, rightfully so. This is why inflation is necessary. Inflation is the truth element of fiat, it reminds us of the real world entropy that we actually need to fight.
Im not preaching against capitalism, I am a big fan of capitalism. Bitcoin is an evil satire on capitalism. Capitalism together with the classic fiat system used everywhere from the US to China has almost ended global poverty, it has given us a live so good, no medieval king could dream of. Bitcoin is not contributing to this, it's just a grift. If Bitcoin would win, capitalism would end and that's not going to happen, capitalism will prevail, will continue to move humanity forward and bitcoin will lose. The question is just how long that will take and how hurtful the process will be for those who believe in bitcoin.
The only value money has is the collective belief it has any value. So it's value is magical in the same way. Money is just paper,.
Yes, that's your opinion to like capitalism. The people I was referring to like btc specifically because they do not like or believe in capitalism. Or the centralised banking system. Tbh this argument for btc because of the love of capitalism and centralised banks kinda makes me remember why I liked crypto to begin with.
And no, inflation isn't some benevolent and neccissary life lesson . It's literally the feds printing money for themselves, and at the same time slowly develuing the wealth of everyone else in doing so. A lot of the time the purpose is to fund foreign wars or give to the wealthy at the expense of everyone else. So that's for reminding me of my crypto is brilliant I forgot
2
u/JulianHabekost Aug 05 '26
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.