Crypto-crash? (20 May, 2021)

Have your say on today's Aardvark Daily column

Crypto-crash? (20 May, 2021)

Postby aardvark_admin » Thu May 20, 2021 8:38 am

This column is archived at: https://aardvark.co.nz/daily/2021/0520.shtml

Just what is the *TRUE* value of a Bitcoin?

Is it really what the speculators have pushed it up to... or is it actually still just enough to buy two pizzas?

Has the speculative trade in crypto-currency effectively scuttled any chance it had to replace Fiat-based currencies?

Should we even be bothering to try and covert to/from Fiat to crypto -- or should we instead be using crypto as a totally separate way of trading value?

What's your guess as to where Bitcoin will be by Christmas?
aardvark_admin
Site Admin
 
Posts: 5183
Joined: Wed May 07, 2014 2:10 pm

Re: Crypto-crash? (20 May, 2021)

Postby hagfish » Thu May 20, 2021 9:25 am

One of several complaints about crypto coins that most of them are backed by 'proof of work' - all those graphics cards flogging away 24/7 chew through a lot of electricity. You could level a similar argument at the US dollar, which is backed by the US military. That uses a lot of energy, too.

Bitcoin has had ups and downs before, but the the overall trend is up. I don't think it will 'go to zero', but neither am I buying any. Maybe - during the current dip - we'll finally be able to upgrade our PCs for something under $3K.

As to bitcoin's 'true' value, it's the amount of money in the world, divided by the (eventual) number of coins (21 million); or about US$2m each. Enough for even a New York range Triple Cheese - delivered.
hagfish
 
Posts: 1011
Joined: Thu May 08, 2014 10:28 am

Re: Crypto-crash? (20 May, 2021)

Postby phill » Thu May 20, 2021 11:27 am

crypto has no value

they have a worth that is volatile depending on how many speculators want to cash in or cash out
that is greatly enhanced if coincidently many wish to do the same thing at the same time which creates a snowball

its like a pack of cards .. they cost maybe a dollar to buy and can be resold for 50 cents most of their life
but at times just 4 of the aces can be worth thousands .. but in the end they still have a value of just 50 cents

there may have been many airy fairy reasons and ideas as to their worth and for their inception in the first place .. but ultimately they only have a value of <50% of the energy required to find them ... or nothing at all as the energy is unrecoverable

the only people interested in their longevity are the criminals who wish to transfer finance untraceably and speculators who gamble on being rich one day
and personally i dont give a BRA if all of those go broke holding lots of imaginary things worth a real nothing

all i see when they are mentioned is a huge environmental deficit with no positive side at all ( *glows red* )
( ,,,,,,,, ....... A E I O U use em sparingly theres probably not enough )

i might live and eat in a sewer .. but hey look how many of these shiny things i have got
User avatar
phill
 
Posts: 2633
Joined: Tue Nov 25, 2014 8:31 pm

Re: Crypto-crash? (20 May, 2021)

Postby Perry » Thu May 20, 2021 11:52 am

Value. Worth. Numbers. Capital Gain. Inflation. Those words / expressions are not always comfortable, rubbing along together.

I accept payment in XXX on the basis that I know when I want to buy something, the vendor will accept that same XXX as valid payt.

XXX are symbols. A valueless, means-of-exchange for products and services. But it has some worth - so long as it's moreorless nationally accepted at its so-called face value.

However, if, when I want to buy something, the vendor will NOT accept XXX as valid payt., then I won't accept payt. in XXX for the same reason.

In the end (whatever that may be), does it not come down to a relationship with the bottom layer of Maslow's Pyramid?

If necessary, I will barter for those bottom-level needs.
Last edited by Perry on Thu May 20, 2021 3:28 pm, edited 1 time in total.
Perry
 
Posts: 1280
Joined: Thu May 08, 2014 9:31 pm

Re: Crypto-crash? (20 May, 2021)

Postby hagfish » Thu May 20, 2021 12:19 pm

Perry wrote:XXX are symbols. A valueless, means-of-exchange for products and services. But it has some worth - so long as it's moreorless nationally accepted at it so-called face value.

As a general rule of thumb, I think our arbitrary, signs, symbols, tokens etc acquire weight and meaning when someone, somewhere is prepared to kill or die for them. A flag is just a piece of coloured cloth. A country is just a line in the sand. A religion is a collection of ideas and beliefs - a system of values. A dollar is not even a piece of paper. But people are dying left and right over these things, and that lends them a certain weight. People have died over Bitcoin, so it meets my test of 'realness'. I wouldn't be surprised to find people have killed/died over stupid-meme-coin Dogecoin, so maybe it's about to enter the pantheon of Real Things, too.
hagfish
 
Posts: 1011
Joined: Thu May 08, 2014 10:28 am

Re: Crypto-crash? (20 May, 2021)

Postby Perry » Thu May 20, 2021 3:37 pm

Such things - whatever they are for the moment - have no actual, valid weight or realness, unless people attribute it to or project it upon them.

Long ago, my neighbour commented to me: if it all turns to shit, they can eat their gold, silver and share certificates while I eat my apricots, berries, sheep and what-have-you.

One problem with that is he may also have needed some sort of repel and defend arrangements, had the shit he referred to come to pass.
Perry
 
Posts: 1280
Joined: Thu May 08, 2014 9:31 pm

Re: Crypto-crash? (20 May, 2021)

Postby Kiwiiano » Fri May 21, 2021 3:49 pm

As I see it, the problem with cryptocoin is that even if you buy in at $1, hang around until it reaches $1,000,000 then bail out, you may still find the powers-that-be down your neck muttering something about "proceeds of crime". How do you prove it isn't?
~ Kiwiiano
“I'm not a total idiot. Parts of me are missing!”
Kiwiiano
 
Posts: 594
Joined: Wed May 07, 2014 5:36 pm

Re: Crypto-crash? (20 May, 2021)

Postby aardvark_admin » Fri May 21, 2021 4:05 pm

Yes, and since you probably can't prove anything... you'll probably lose your bitcoin, your cash, your house and your car in the process.

Presumed guilty until proven innocent -- the new "justice" system :-(
aardvark_admin
Site Admin
 
Posts: 5183
Joined: Wed May 07, 2014 2:10 pm


Return to Today's column

Who is online

Users browsing this forum: No registered users and 15 guests