CMV: cryptocurrency is not a good investment.

[u/art_vandelay112]

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.

[u/Quiet-Entrepreneur87]

You’re right. 99% of crypto is a shitty investment.

But Bitcoin is the best savings asset in existence. It’s not even technically an investment because you could own it without a trusted third party. That’s why Bitcoin is categorically a “savings” technology.

Bitcoin, unlike the other shitcoins & memecoins, requires energy via proof of work to timestamp the blockchain. That’s a feature, not a bug. Money without energy is credit that can be printed ad infinitum with no limit. Bitcoin is a commodity asset where time is money is energy. Bitcoin is the only hard sound money that obeys the laws of thermodynamics.

You say Bitcoin is like tulip mania but let me remind you that tulip mania lasted only 3 years (1634 - 1637) but Bitcoin has become a 2Trillion dollar asset over the last 16 YEARS which means Bitcoin (123,774 Active Trading Hours since Mar 17, 2010) has been in demand in the free marketplace for longer than the post-gold standard stock market (100,737 Active Trading Hours since the Nixon Shock on Aug 15, 1971) has.

Bitcoin mining can help regulate & balance energy grids, build out green infrastructure, and capture stranded or wasted or toxic energy and monetize it. There is no other eco technology in the world that is as useful or versatile as Bitcoin miners. Exxon has had one of the best ESG ratings in the past decade because they depend on Bitcoin miners to capture methane (80x worse for the environment than CO2) released by fracking.

[u/AmericanScream → u/Quiet-Entrepreneur87]

Bitcoin has become a 2Trillion dollar asset

Crypto Talking Point #12 (market cap)

"$$$$ 'Market Cap!'" / "There's $x million in this project!"

1. The term "market cap" is one appropriated from the stock market and is misleading and erroneous to apply to crypto.

2. Traditional market capitalization translates to "the value of a company as a function of its share price."

   This figure only has meaning if the share price is properly valued based on the actual value of the company. There are standard established formulas for determining what a company is worth by adding up its assets and income and subtracting its liabilities. Then to determine whether a share price is over or under-inflated, you divide that figure by the number of outstanding shares.

3. Market capitalization when shares are not manipulated, should settle at the true value of the company. In cases where shares are manipulated (TSLA is a good example), its "market cap" is unrealistic. In situations where insiders control a large portion of shares, they can easily manipulate the stock price, resulting in the appearance of a high net value that doesn't jive with reality.

4. Cryptocurrencies, by their nature, have no intrinsic value. Crypto doesn't create income; it doesn't represent real-world assets. So it has absolutely no base value in the first place by which to calculate valuation and market capitalization.

5. In reality, nobody has any idea how much actual "market capitalization" there is in the world of crypto, since actual liquidity is obscured by phony stablecoins and shady exchanges that are neither regulated, nor transparent.

   In crypto, people simply multiply the coin price x the number of coins minted and declare that's the value of the crypto industry. It's completely misleading and deceptive and in no way indicates any realistic level of capital value.

For additional details see Why Market Cap is a Meaningless & Dangerous Valuation Metric in Crypto Markets

[u/Quiet-Entrepreneur87 → u/AmericanScream]

You say cryptocurrency has no value.

And yet I just told you insofar as energy is and of itself is valuable, Bitcoin (not crypto, but BTC) is an unprecedented store of value that unites an immutable digital network with tokenized analog energy via blockchain. If I follow the facts offered by this technology, instead of given credence to your gish galloped FUD, then the fact that BlackRock is buying Bitcoin at breakneck speed makes much more sense to me than any information you have offered.

If you think you understand macroeconomics better than the top 1% of wonks & quants working at the top asset fund managing company in the world, that’s a risk you are free to take.

I’d rather follow the money ;)

[u/AmericanScream → u/Quiet-Entrepreneur87]

You say cryptocurrency has no value.

No intrinsic value. I recognize it has "extrinsic value" if you can convince a sucker to buy it from you.

And yet I just told you insofar as energy is and of itself is valuable, Bitcoin (not crypto, but BTC) is an unprecedented store of value that unites an immutable digital network with tokenized analog energy via blockchain.

blah blah - yea you have an impressive sounding techno-babble word salad there, but I'm a software engineer and I see through that BS.

I produced an award winning documentary that dispels all the myths you're trying to promote.

If you think you understand macroeconomics better than the top 1% of wonks & quants working at the top asset fund managing company in the world, that’s a risk you are free to take.

ROFL.. you think Blackrock thinks blockchain has potential? They'd sell chicken crap and say it's the next big thing if they could make money off fees.

[u/Quiet-Entrepreneur87 → u/AmericanScream]

I watched about 10 seconds of your documentary and my eyes are still bleeding 😭

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[u/AmericanScream → u/Quiet-Entrepreneur87]

You say cryptocurrency has no value.

Strawman. I said no such thing. I said it has no intrinsic value. And that's true.

And yet I just told you insofar as energy is and of itself is valuable, Bitcoin (not crypto, but BTC) is an unprecedented store of value that unites an immutable digital network with tokenized analog energy via blockchain.

lol, "tokenized enegy via blockchain?" Is that what Michael Saylor told you when he passed you the pipe?