Post
Topic
Board Economics
Re: Is Bitcoin for “Fake Rich”?
by
teosanru
on 24/12/2020, 19:13:58 UTC
Actually if you see all the assets that you have mentioned were tangibles. Even a stock is tangible as indirectly there are the net assets that you get of the company working to appreciate it's price. Derivatives derive their price from these stocks and bonds only. But Bitcoin has no physical asset below it. The antminers or hardwares mining Bitcoin cannot be said to be bitcoin's infrastructure. Therefore to be honest it is merely a line of code. But yes coming to fiat too it's also a sentence promised by the government. So yes it's difficult to draw a direct comparison between both the things. But this does not makes you fake rich. As long as the line of code can be sold in the market at price this high you have no problems at all and same is the case with the fiat money. And if you are so naive to say that governments can fall easily and make your fiat useless there are equal chances of bitcoin pricing falling down to $1000 again.

I think great point! In such manner, we might come to a point when air would be also sold and traded, just like the "line of code" (Bitcoin) is traded now. World changes, and assets might also change. Yet, some of them survived wars, revolutions, government falldowns, epidemics, etc. for thousands of years, while some just emerged in the past 10 years, and we already all know will not exist after the next 10-50 years once quantum computers become a daily reality of every common person.


~Snip~
You actually are absolutely right. I don't know if that was sarcasm or what but I feel air and water might also get listed soon on Commodities exchanges if the scarcity of both so remains and increases. I Mean if you see the commodities exchange something very basic which started like a utility like power too is being traded on exchanges so what's the problem with air and water? Once we reach a time where you have to pay for it you might see Air and water derivatives getting listed on exchanges for sure. But yes talking about Bitcoin obviously you are right that we might see quantum computers which could end bitcoin but are you going to hold your cryptos for so long? I mean let's be pretty honest. No one plans to hold it for the next 30-40 years what I am trying to say is that if something has value and demand which is likely to sustain until next 5-7 years there is no harm in speculating on such a thing for time less than that.