Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
SheHadMANHands
on 11/06/2016, 13:12:17 UTC
LOL.  Not at all...

Scratcher tickets aren't useful innovation.  They don't make any industry processes more efficient.  They don't reduce costs or friction in archaic systems.  They don't impact personal freedom or incentive further value creation.  They don't enable new, useful applications that previously weren't possible.  They're clearly -EV, since there is no real value being created and, on top of that, Uncle Sam takes a healthy slice out (typically from the poorest people of course).

Crypto-currencies are without question useful innovation.  As a crypto-currency, Bitcoin offers unique utility in the real-world that, at least today, is not matched by any alternative crypto-currency.  It exhibits an incredibly strong network effect.  It has the greatest hashing power (by far).  It has the infrastructure and distributed ecosystem of users, payment processors, "Bitcoin 2.0" projects, etc.  It has international brand recognition, and a growing "trust" that's largely a function of time.

Anything that is both useful and scarce will have value.  Any new technology that provides real utility in the world is not a Ponzi scheme.  To ask why speculators have gotten wealthy quickly, and why many continue to accumulate bitcoins, is to strike the bedrock of what constitutes real value in a society with the shovel of a stupid question.  The value of the Bitcoin network is not a function of the fact that there exists an internal unit of account ("bitcoins"), and that this unit of account is exchanged between peers, and that some of these peers, being mere mortals, may be motivated by the opportunity for financial gain.  If that were the case, you'd have to apply this same fallacious logic to any tradable instrument.  Is Tesla a Ponzi scheme because some investors might want to "get rich quick"?  What about gold?  Is Facebook suddenly a crappy company because individuals, acting in their own self-interest, purchase the stock out of desire for financial gain?

Furthermore, what about people shorting Bitcoin?  You've only mentioned one side of the equation, though both are of course motivated by selfish reasons.  "After all, we are not Communists."  This is capitalism in action.