Galileo Galilei once said, All truths are easy to understand once they are discovered; the point is to discover them. Discovering truth about cryptocurrencies (cryptos) and showing that they are not money but faith based schemes that are bound to collapse, is the goal of this article. The first step toward achieving this goal is to explain why economic relations between people, where transfer of ownership rights is taking place, cannot be based on faith, and how, in that regard, cryptos differ from tangible goods and fiat money. After that, we will know what money actually is, and what it represents. Given this knowledge it will become clear why cryptos never were, nor ever will be money. The rest you can read here:
https://cryptofraud.wordpress.com/Very well written argument! I am just surprised that you've taken the pain of creating a whole blog just to prove this point that cryptos are never money and will never be. So it clearly shows that you don't believe in cryptos and trying to infuse us with your belief. I agree with your one point, that crypto is a faith based currency without any inherent value in it. But doesn't the public trust has a value in it? Let it be intangible, but still it has a value.
When you go to a very nice restaurant and the restaurant serves you well, it creates a value for you. So you would want to go back to them and tell your friends to visit them because you were well treated by that restaurant. So the restaurant is creating value for you by serving you well and you are spreading that value to others because you believe that your friends will also get the same treatment if they visit that restaurant. Isn't it a faith based value you are creating for them? Same with the crypto currency. Here we are creating value for the crypto currency by believing in the technology.
Remember the entire market exists for the consumers only. Consumers are the main factor behind any product and services. If there is no consumer exists, probably gold will also not have a value. Today gold is valuable because we consumers believe in it, otherwise it is just a metal like iron.
So crypto is no different. It can be intangible in nature, but it offers immense values to the consumers. Just to reiterate what Galileo Galilei once said, we haven't yet discovered the true potential of blockchain technology. Once it is discovered, it will be impossible to stop crypto from reaching the moon. Only a fool without any technical knowledge will compare Ponzi with crypto market. So I will gracefully ignore your argument and because it holds no value to me. Good day!
When we talk about the value of X, we are not referring to the technology which is used to exchange, transfer or store X, but we are referring to the practical utility of X. If X is some tangible good, this practical utility is the ability of X to satisfies some human want or need. If X is representative money, this practical utility is the legal ability of X to restore ownership rights of some tangible goods. Bitcoin has none of these abilities, and thus it has no value - it is just an empty numerical value.
Bitcoin technology is simply means to transfer or store numerical values. There is nothing valuable is the ability to transfer or store numerical values. The whole system is just a modern day ponzi scheme.