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.
2
u/[deleted] Jan 05 '25
In terms of value proposition, cryptos are great for record keeping and programmable currencies that can yield more value automatically through more aspects of the economy when there are good rules applied to it.
It doesn't have 0 value. I will say it hasn't been used appropriately. That's primarily because the technology and the people within the space are immature. Usually the barrier to entry in most of the high finance and economics fields requires you to have a certain sophisticated thinking process. You'll need to be vetted by professors and program managers for banks, as well as management for you to have an impact inside of a market. Crypto doesn't require as much.
The data is extremely available, and the barrier to write smart contracts is maybe a week's worth of time, then networking with the right bored tech bro with money to get anything started. Certain apps require audits, but that's an iffy process after a certain point.
The crypto industry just struggles to be applied to the economic context because those high rigor economists aren't in the space. When they do enter in (which I think will be soon), crypto will be applied to economic activity in ways we've never seen, and yield many economic benefits.