That's what is known as a Ponzi Scheme. An asset with no intrinsic value that relies on the greater fool to provide income for the previous investors.
Having said that, its been that way since its inception so I suspect it will continue until eventually the network gets hacked or compromised revealing it to be nothing more than fairies gold. Then it'll be Books, Films and documentaries for years to come.
Well, I would be take any predictions from experts with a pinch of salt. They don't know either and may have unclear motivations for having an opinion one way or another. There are other ways to hedge inflation without needing a cryptocurrency to do it. At least at this time, bitcoin seems to be an inverse hedge for inflation. I think this actually makes sense given that you would expect less retail buyers in the market when the economy is down. Trading volumes are way down on last year.
I suppose it would depend on the environment around bitcoin at the time. Money in a bank isn't holding much value at the moment and is being devalued as sure as time itself. It may be a case that in the future a stable bitcoin as a hold of value and finite would serve a purpose. I'm not saying it will or won't, just what this guy said and anything he was speaking about was going over my head for the most part, including this.
Do you think it sounds realistic that people would use bitcoin as a "store of value"? So say if we could say there won't be the wild swings in price, so no chance of making a lot of money, would people buy it?
I think this was a long-term prediction, he wasn't describing it as such in the present.
The merge probably won’t hit the transactions people are expecting and the fees won’t be that much lower. If they are then the L2’s on it would be dead.
Eth itself won't be used as a currency due to it's inherent instability, but it's possible an Eth based stablecoin could. Could is a big word though. I don't think I'll ever trust algo stablecoins, nor any privately backed company "money". Even people in crashing economies don't trust the stuff for anything outside speculation.
Well, I don't think anyone is using it for it's "store of value" potential. Professionals are trading it as there is money to be made. Retail are hoping it jumps 50% in value.
Marc Andreeson predicted that bitcoin, due to it's inability to adapt or change, will only ever be useful as a store of value, like Gold today. He said PoS coins, particulary ETH when the merge occurs, have real potential as adopted currency. He said he sees a future for bitcoin and a PoS token. All predictions of course, but interesting to hear.
Well bitcoin is really used for speculation, it hasn't really gained other adoption over that time.
Indeed but there's also the illusion of utility. One day I simply made up a token to a friend on the spot and after 15 minutes they wanted to buy it. It's easy to sell people solutions to problems that don't exist. Tech companies create stuff we use, crypto companies create pitches for us to sell their tokens to other schmucks.
It’s not a smart contract platform. It does transfers and that’s all it needs to do. There are L2’s building on it and they can handle the smart contract side of things. Wallet addresses have increased since 2017 so it’s not doing nothing, it decentralised and secure. It’s price won’t be stable for a while yet as larger holders can still move the price too much.
How do you think bitcoin is coming along in terms of adoption? It doesn't seem to have done much since the initial craze in 2017.
For what it's worth, I think you have the right approach for trading/investing crypto. There is so much emotionally driven speculation in the space. Its possible to make a case for why XYZ might increase in value but it is never a good thing to have an emotional attachment to an investment.
That’s true for the sh*t coins but there is utility in the layer ones. They are basically an operation system and it’s the apps on them that will increase the demand and value with good tokenomics. It’s the same for tech companies, you look where the developers are going.
Yup, a direct investment in the "Greater Fool theory".
This is literally everyone in crypto, it's just that some realise this and others don't.
I'm not investing in the coins, I'm investing in people getting caught up in hype and paying more for something than I did.
100%. I think a recession is really bad for the crypto markets. I don't believe in it long term personally, I think it is a solution looking for a problem. I work for a trading firm, so I have nothing against trading it specifically and people can certainly make money doing that. I wouldn't see it as something I need to have as part of my personal investments as it is too speculative and I don't need that. My investment strategy wouldn't be replicable for the average guy though.
It seems that a lot of younger people (say 25 years old, still living at home) see it as the only way they are likely to be able to get enough money to buy property. They really, really want to believe in it, but the fact is you can't have this kind of emotional attachment to an investment and even more so when it is as speculative as crypto is.
So, you see some people who might have gotten in early in a particular coin. This would be similar to someone buying Apple when it was much lower. It isn't something that you can replicate no matter how much you try to convince yourself that you are great at picking stocks/coins. To make money consistently longer term you need some sort of "edge", basically something you have that others don't, knowledge, tech etc.
Younger people may feel that, but whether they'll still be able to do it is a big qusetion. The entirety of the crypto market is based on getting new "investors" in the door. You need the new investors to pay the old investors.
When the squeeze really hits, people are not going to have as much money to invest because their money is going to be going on paying their heating and electricity bills instead.
I also think purse strings being tightened will seriously soften people's appetite for investing in something so volatile.
I think the market fundamentally rests on the emotional uniformed retail investors. The professional side sits on top of that making money, consistently trading the flow, regardless of whether it goes up or down. So, longer term, in my opinion, crypto markets will survive as long as they can continue attracting young uninformed people who see 6% in traditional financial markets as boring. I think younger people now feel they need to hit a home run rather than consistently invest over the longer term if they want to buy a property.
That I think we're going to see lower lows as a result of macro economic conditions.
I could be absolutely wrong, we might not see lower lows, I just have a feeling there is more pain to come.
We shall see.
What are you basing this on?
think of it as an accurate statement with an element of humour, or a humorous statement with a touch of truth
China real estate joins the conversation...
I see Bitcoin at ~€12K and Ethereum at ~€600/€700.
Alts will get rekt even more.
I'm bullish on crypto long term, but I don't think we're past pain let. When winter hits and people really start to struggle with energy inflation etc we're going back down.
Strap in, we're heading for a rough period.
Can never tell if this is serious or not
Only 2 posts and pushing a scam coin - 3/10 for effort (includes 2 points for trying to hide it)
Could you send them a revolut card maybe? It would be even easier. I used to work with a guy who did this for his family in Moldova.
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