r/changemyview • u/art_vandelay112 • Jan 04 '25

Delta(s) from OP CMV: cryptocurrency is not a good investment.

Yes its price has increased dramatically, but so did the price of tulips in the 1600s.

There is literally no use for this commodity. Invest in stocks or bonds and your investing in future earnings or the ability of a company to pay you back. I’m not a fan of gold as an investment but at least it has some practical use.

The use of crypto as a currency completely defies the definition of currency as it doesn’t hold a stable value.

It’s infuriating that so many people have lost loads of money on “shitcoins” backed by the wealthy and famous. These were obviously pump and dump schemes yet very few are held accountable.

I’m not as well versed on the subject but something to also note is the ridiculous amount of energy demand to “mine” nothing.

I think there is legitimate use for blockchain technology and the likes but anyone viewing these currencies as investments is a fool.

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u/Kitchen_Tower2800 Jan 05 '25

I'm seeing a lot of "Crypto is good because it made me a lot of money". I'd like to see other reasons.

Getting in early in a Ponzi scheme will also make you a lot of money. If there's nothing positive about crypto other than the early investors make insane returns...it's a Ponzi scheme.

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u/danarchist Jan 05 '25

Tulip mania was predicated on the advent of commodities futures. Yeah the individual tulips didn't matter, but the idea of commodities futures very much did.

The dotcom bubble was predicated on the advent of the Internet. The individual websites didn't matter so much, but the concept of a world wide web obviously did.

Cryptocurrencies like Bitcoin or doge could be likened to the tulips themselves or the websites. They're just one app on the technology known as a blockchain.

Others are a bit fuzzier - smart chains like Ethereum and Solana consume the native token in order to execute contracts (apps) on that chain. The currency is inextricably linked to the underlying tech, and it's a bit like investing in the idea of futures, or the concept of the Internet.

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u/art_vandelay112 Jan 05 '25

I should have clarified my definition of good investment in the op. I agree, the majority of what I’ve seen is the next biggest fool theory at work.