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Is Bitcoin actually worth anything? (lemmy.ml)

submitted 4 days ago by oxjox@lemmy.ml to c/asklemmy@lemmy.ml

105 comments fedilink hide all child comments

I get that anything is worth whatever someone is willing to pay for it. That's besides the point. My point is, beyond speculation, what do crypto coins represent?

I also understand that the value of the US dollar is being questioned almost as much without the backing of gold.

But what I really want to know is what is at the foundation level of Bitcoin that people are buying into?

I have a basic understanding of the blockchain, etc. I sold 1BTC in 2017 for $1200 when I thought that was as high as it would go. At this point, at over $100kUSD and rising steadily, what is the $ limit and what is that limit based upon? I thought it was based on the value of mining to check transactions but this seems... not worth $100k to me.

I've been thinking, the only tangible value I personally see in Bitcoin, because it's not really being used as legitimate currency, is for criminals. By now, there must be trillions of dollars in BTC acquired by criminals holding corporations hostage. When you've got people like Trump involved (either explicitly or by way of manipulation) with an executive order to establish a crypto czar, this suggests to me that he's creating pathways for bad actors to more effectively gain more wealth. These are the people who are most excited in Bitcoin, beyond speculation.

I mean, there's little to nothing on the up and up with crypto, right? It's a scam. Right?

Please, factual answers only. I'm looking for someone to dispel my speculation with genuine economics of the matter.

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[–] Sludgeyy@lemmy.world 2 points 2 days ago (3 children)

But if that was all we used it for, the price of gold would be a tine fraction of what it is

That's intrinsic value.

[–] Semester3383@lemmy.world 1 points 2 days ago (2 children)

Yes.

But many people--and I'm not saying you do this--but many people get gold, silver, and diamonds confused, and think that their intrinsic value is linked to their perceived value. does that make sense?

[–] Sludgeyy@lemmy.world 1 points 2 days ago (1 children)

I get that

I wouldn't buy diamonds or gold hoping they increase in price just as much as I wouldn't buy bitcoin to do the same.

If you offered me 1USD in Gold, Diamond, or Bitcoin.

I would take the gold. It has the most intrinsic value.

The probably that gold hits 0USD is less than bitcoin hitting 0USD.

The only reason you'd take bitcoin is if you think that it has a higher ceiling. Intrinsic value is the floor. But that is gambling

[–] Semester3383@lemmy.world 1 points 1 day ago

I opt for bitcoin because it has more utility value for me.

My bank makes it an enormous pain in my ass to buy things from overseas vendors; they won't process any payments that are going outside of the US border. The rationale is 'fraud', even when you're dealing with well-known and trusted vendors. Even when I try calling my banks and telling them to pre-authorize the charges, they won't go through. The only way I can get around that within the established financial system is by using a 3rd party payment service; those 3rd party services make their money by lopping off a percentage of that purchase. E.g., if I'm buying something for $1000 from China (and we're going to ignore tariffs, duties, taxes, and shipping costs for the moment), then I may have to pay $1040 for it, because of the fees that are taken out. On the other hand, if I'm buying from a trusted vendor, and I use bitcoin, I can just send it to them. Bitcoin doesn't care where it's going, and--assuming you don't care about speed of confirmations--transaction fees can be quite a bit lower than using any other payment system. (And, BTW, transaction fees are built into all payment processing systems; it's just not apparent to individuals on the purchasing end. That means that if something costs .001btc, then I have to send, say, .0010001btc to the vendor, but then the)

Speculation doesn't play a role in it for me.

I have no direct use for gold; I can't plate connectors.