Post
Topic
Board Bitcoin Discussion
Re: Fun fact: Cryptocurrencies are not Assets, but Activity Logs
by
o48o
on 24/08/2024, 20:54:55 UTC

Within cryptocurrency systems, nothing like this exists. There are no resources that can provide a benefit to cryptocurrency owners. There are only records.

For example, a few moments ago, one person gave another $61,182. In the Bitcoin system, this was recorded as an increment of 1 to the number associated with the first person's address and a decrement of 1 to the number associated with the second person's address. Initially, people gave each other $0.001 for the same numerical update (+1/-1). Such updates (positive ones) occure also when someone spends energy to maintain a decentralized database that stores these updates (blockchain).
So?

Intrinsic value


Obviously, these numerical updates do not represent transfers of an asset, unlike with shares and fiat currencies. That's simply because a person whose number has increased does not, as a result, have the ability to realize greater benefit from a resource within the cryptocurrency system. In the case of shares or fiat currencies, such a person would be able to receive a larger dividend from a company or more goods, services, or labor from bank debtors.

From this, only one conclusion follows: a blockchain doesn't store the record of transactions. For a transaction to occur and be recorded, there must be an asset that changes owners. However, within cryptocurrency systems, no assets are involved—only records of changes in numbers associated with digital addresses.

So what the blockchain actually stores is an activity log. This log tracks the operation of a scheme resembling a pyramid scheme, where participants give each other assets in the hope of receiving more assets from new participants in the future. With each such giving, the log is updated, and everything is stored on the blockchain.


In conclusion, with cryptocurrencies often being presented in economic terms to the public, their owners believe they possess a monetary type of asset and use it to conduct transactions. However, since the asset with which to conduct transactions does not exist, what they actually possess is the ability to update the log. This ability is exercised through so-called "wallet" applications.
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You are twisting words, and honestly sounds like have misunderstood the whole concept, and that and you are just trying to shoot down your former beliefs that also were wrong.

It's called decentralized ledger for a reason. Even in some role playing game, dungeon master could keep a ledger in a paper notebook, on how much imaginary money players have, and those would be assets as well. In case of blokchain, instead of that DM, those asset "transfers" are protect by blockchain by recording them to blokchain. There's nothing else you need for it. I don't get why you think that those would be less of an assets when they are "just" markings in the ledger.

Also paragraph i bolded doesn't make any sense in any level.